After losing NBA media rights to Disney and Amazon last month, Warner Bros. Discovery is now evaluating their business, revealing significant financial impacts from what they call a โtriggering event.โ
Financial Impact:
Warner Bros. Discovery (WBD) reported a $9.1 billion non-cash impairment charge for their TV networks in just the second quarter of this year. CFO Gunnar Wiedenfels explained, โThereโs a systematic process that we go through every quarter, and weโre monitoring for a so-called triggering event.โ He added that discussions like those with the NBA compel them to reassess their business strategy.
Warner Bros. Discovery Posts Nearly $10 Billion Loss: The loss includes a $9.1 billion impairment charge tied to the plunging value of its linear networks.
^WSJ #Business #Finance #CFO— Rick Telberg (@CPA_Trendlines)
CEO’s Perspective:
CEO David Zaslav avoided discussing the loss of NBA broadcasting rights directly but emphasized his experience with carriage agreements over four decades. โWeโve been very effective in that business,โ he said, stressing the importance of offering diverse content across different channels.
Lawsuit Against NBA:
With TNT no longer airing NBA games for the first time since 1989, WBD decided to sue the league, claiming they matched Amazonโs proposal but were still rejected. Sources say Adam Silver signed a new contract worth $76 billion with Disney, NBC, and Amazon; WBDโs offer was reportedly $1.8 billion per year.
Sometimes fans feel like these big companies forget about us little people.
Charles Barkley Stays at TNT:
Despite losing NBA rights and previously hinting at retirement, Charles Barkley announced he would remain with TNT Sports. He had signed a 10-year extension two years ago but felt uncertain during negotiations this year.
https://youtube.com/watch?v=fMCdZL856Tc%3Ffeature%3Doembed
โI love my TNT Sports family,โ Barkley stated recently. โโฆ Iโm looking forward to continuing to work with them both on the shows we currently have and new ones we develop together in the future.โ
Barkley also praised his employersโ leadership team for being aggressive in adding new properties to TNT Sports: โThis is the only place for me… Iโm going to give my all as we keep [fans] entertained for years to come,โ he concluded enthusiastically.
