After shedding the NBA media rights to Disney and Amazon final month, Warner Bros. Discovery has introduced that they’re presently evaluating their enterprise, as they reveal how massive of a blow they’re struggling financially after what they name a “triggering occasion.” Nonetheless, additionally they defined how their failed negotiations aren’t the one causes behind it.
WBD reported that they earned a $9.1 billion non-cash impairment cost associated to the corporate’s TV networks simply throughout the second quarter of this yr. “There’s a scientific course of that we undergo each quarter, and we’re monitoring for a so-called triggering occasion,” stated Gunnar Wiedenfels, CFO for Warner Bros. Discovery.
“That is clearly the place a dialogue, just like the one with the NBA, comes into play as a triggering occasion, which then compels us to reevaluate our enterprise case in a strategic planning course of with the most recent assumptions, the very best view of the place the business is and the way we play in that in that subject. That’s what then results in a valuation,” he added this Wednesday.
Warner Bros. Discovery Posts Practically $10 Billion Loss: The loss features a $9.1 billion impairment cost tied to the plunging worth of its linear networks. https://t.co/X8Tr9SnpbE ^WSJ #Enterprise #Finance #CFO pic.twitter.com/adcUuXgds0
— Rick Telberg (@CPA_Trendlines) August 7, 2024
Then it was flip for CEO David Zaslav to speak concerning the lack of the NBA’s broadcasting rights, however the govt refused to consult with this case and the way it has impacted their cable belongings. “I’m not going to talk to any particular negotiation or particular piece of content material or IP,” he stated whereas emphasizing that he’s handled carriage agreements for 4 many years.
“We’ve been very efficient in that enterprise, and it’s our job, whether or not it’s a meals channel or an leisure channel or a sports activities channel, to make it possible for we’ve got a really strong providing of content material that nourishes and excites that viewers,” Zaslav insisted.
Now that the NBA received’t be aired on TNT for the primary time since 1989, the WBD group has determined to sue the league as they guarantee that they matched Amazon’s proposal however have been nonetheless rejected with out alternative.
Sources point out that Adam Silver inked a brand new contract with Disney, NBC and Amazon that’s collectively price $76 billion. The provide that wasn’t accepted from Warner Bros. Discovery was reportedly a $1.8 billion-per-year package deal.
Analyst Charles Barkley reveals he received’t retire and can stay in TNT regardless of shedding NBA rights
This got here as a shock, because the Corridor of Famer had talked about again in June that he wished to retire quickly. Chuck famous that the upcoming NBA yr can be his final within the broadcasting sales space, particularly after what finally occurred with the media deal negotiations.
The factor is, he had signed a 10-year contract extension with TNT Sports activities simply two years in the past, however felt at midnight all all year long as negotiations with the NBA appeared grim. After shedding the media rights, Warner Bros. Discovery has determined to sue the league, as they consider they matched their opponent’s provide and have been nonetheless rejected.
“I like my TNT Sports activities household. My No. 1 precedence has been and all the time will probably be our individuals and holding everybody collectively for so long as potential,” Barkley shared not too long ago in an announcement. “… I’m trying ahead to persevering with to work with them each on the reveals we presently have and new ones we develop collectively sooner or later.
Chuck expressed why he feels such loyalty to his employers. “That is the one place for me. I’ve to say … I’ve been impressed by the management group who’s preventing onerous and have been aggressive in including new properties to TNT Sports activities, which I’m very enthusiastic about. … I’m going to offer my all as we maintain [fans] entertained for years to come back,” he defined
