Writedown suggests value of CNN has tanked
'Judging by the ongoing mass layoffs at the former, one can argue that CNN's value is now negative and will continue to be so until it stops hemorrhaging cash'
Republicans, conservatives and Americans who lean to the right politically often have thought that CNN, with its extreme and activist leftist agenda, is worthless.
Now it appears they may be close to right.
A new report at ZeroHedge explains that Warner Bros. Discovery, the parent of both CNN and TNT, has stunningly taken a $9.1 billion charge to write down the value of its operations.
“What had been obvious ‘to the rest of us’ for years, is finally official: late last night, shares of Warner Bros. Discovery, the parent of CNN and TNT, crashed 10% to the lowest level on record after it reported dire results, which missed across the board and plunged across every income statement category…,” the report said.
CNN and TNT came to belong to Warner Bros. Discovery when it was created during its acquisition of WarnerMedia.
“The write down confirmed that legacy cable channels like CNN and TNT are no longer worth what they were when the $42 billion merger was completed. In fact, judging by the ongoing mass layoffs at the former, one can argue that CNN’s value is now negative and will continue to be so until it stops hemorrhaging cash,” the report said.
The report noted for the quarter Warner Bros. had a net loss of $10 billion, including additional charges of $2.1 billion related to the merger. Revenue was down 6.2% to $9.71 billion.
CEO David Zaslav claimed, on a call with investors, “Two years ago market valuations and prevailing conditions for legacy media companies were quite different than they are today. This impairment acknowledges this and better aligns our carrying values with our future outlook.”
Lately, Warner Bros. has been dropped by the NBA as a broadcast partner in its decision on a $76 billion media rights deal.
And there’s been a steady exodus of viewers from the network.
Warner Bros. has cut some 2,0000 jobs over the past year, including 100 at CNN alone.
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Originally Published at Daily Wire, World Net Daily, or The Blaze
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