Cleaning house ain’t cheap! Amidst all the noise about the new direction for the world of DC, including Superman, comes other news that Warner Bros. Discovery are writing down huge amounts of content. They are taking advantage of their closing window, post-merger, to grow their write offs and impairments by over $1 billion to around $2.8 to $3.5 billion.
Overall the pre-tax restructuring and impairment charges related to the WarnerMedia-Discovery merger will potentially hit up to $5.3 billion. This is a smart move and good use of the opportunity presented by the tax rules following a merger.
There is a lot of content being stripped off HBO Max so it can be licensed out to other VOD services to drive revenue.
Westworld S1-4, The Nevers S2, Raised by Wolves S1-2, The Time Traveller’s Wife S1, Minx S1-2, Love Life S1-2, FBOY Island S1-2, Made for Love S1-2, The Garcias S1, Legendary S1-3, Finding Magic Mike S1, Gordita Chronicles S1 and Head of the Class S1 have all been targeted for removal from the streamer as Warner Bros. Discovery gears up to launch a combined HBO Max/Discovery+ service in the U.S. in the spring.
So what next for Warner Bros. Discovery? DC is the big news for them, but they have huge amounts of other content, IP and franchises under their control from Lethal Weapon to Mad Max, from Scooby Doo to Loony Tunes. Tom & Jerry, Dirty Harry, Police Academy, and National Lampoon all sit under the Warner Bros. umbrella. They even own the rights to adapt everything Game Of Thrones related, plus Lord Of The Rings for the big screen, limiting Amazon to small screen content.
Sooner or later you have to stop stopping, and start starting. Will a grand new vision or Warner Bros. movies unfurl under their new ownership?