Warner Bros Discovery Is Talking About Splitting Up The Company
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It is no secret that the recently formed megacorp of Warner Bros Discovery has been in trouble for the past few years. The two companies (Warner Media and Discovery) merged in 2022 and have seen repeated losses at the box office and have struggled with other projects across the entertainment industry. But new reporting points to a new direction for the huge company, and that is both going their separate ways.
This rumored direction comes via CNBC, whose reporting was also picked up by Reuters. The talks about the two companies splitting were reported on following a bruising financial quarter. The company missed their Q1 revenue projections despite their streaming subscriber numbers jumping by 5.3 million users. These losses led to nearly 6% being knocked off the merged company’s shares, only to rebound over 4% when the claim that they were looking to separate dropped.
Reuters has been unable to get Warner Bros Discovery to comment on the reporting, but the core problem remains that the company’s merger has not been smooth. We’ll have to see if these rumors play out, but the vast 38 billion dollars of debt accumulated by the combined entity is sure to be a sticking point in any negotiated split.
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Source(s): Reuters
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