Warner Bros. restructuring costs. Discovery is beginning to take shape.
On Monday, the company said in a securities filing that it expected to lose between $3.2 billion and $4.3 billion in pre-tax restructuring fees related to WarnerMedia’s acquisition of WarnerMedia. including documents related to content from 2 billion to 2.5 billion USD.
Additionally, WBD said it expects organizational restructuring costs between $800 million and $1.1 billion, facilities consolidation and other contractual savings between $400 million and $700 million. .
More importantly, WBD filings show that about 70% of that $3.2 billion-$4.3 billion has been made since the acquisition, meaning it was mostly done with a strategic review. on the company’s business, though it added that the write-off and restructuring efforts are “expected to be substantially completed by the end of 2024.”
WBD has been engaged in what it calls a “global strategic review of content” since the WarnerMedia deal ended, canceling projects, resuming development, and pausing ineffective library content. . In the first quarter after the deal closed, it revealed a spending of $825 million on content, and a similarly substantial figure was expected in its Q3 report.
Among the projects that were scrapped was a near-complete project Bat girl movies (developed for HBO Max), a Wonder Twins movies and TV shows like Full Frontal with Samantha Bee.
In addition to canceling popular content and abandoned development, the company has also laid off employees on a rotational basis, with various divisions set to make cuts in recent months. Warner Bros. Television Corporation. was affected earlier this month.
And the company also plans to save costs by consolidating its Discovery+ and HBO Max streaming services next year, which will allow the company to reduce the number of carriers it uses. and consolidating some engineering costs. It will also consolidate office space, though the specifics of its future footprint in New York (where it has offices in both Hudson Yards and Park Avenue South) remain to be considered.
At a town hall last month, WBD CEO David Zaslav and other top executives acknowledged the “disruption” and “difficulty facing all media companies.” in the current environment, and also the “challenges” in integrating WarnerMedia and Discovery.
However, he reiterated that the company is “absolutely not for sale” and that it hopes to be able to compete as a pure content company playing with its current assets.