Warner Bros. Discovery shares down 12 percent following USD9.1B write-off raises concerns

(MENAFN) Warner Bros. Discovery's stock experienced a significant decline of 12 percent following the company's announcement of a USD9.1 billion writedown on its television assets, which has heightened concerns about the future of its traditional TV business. The company reported a staggering USD10 billion net loss for the second quarter, largely driven by impairments and failing to meet Wall Street’s expectations for quarterly results. This financial setback overshadowed the strong performance of its streaming services, which saw growth fueled by lower-priced ad-supported subscriptions and the expansion of its Max streaming service into new markets.

The company's recent performance also reflected the negative effects of losing a major sports broadcasting deal and the broader industry shift towards digital broadcasting. Since the merger of AT&T's WarnerMedia and Discovery in April 2022, Warner Bros. Discovery has seen its market value plummet by more than USD40 billion. The stock, which has already lost over 32 percent of its value this year, has become the biggest loser on the S&P 500 index. If the downward trend persists, the stock could open at its lowest level in over 15 years, with a potential loss exceeding USD2 billion in market value. 

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