Warner Bros Discovery (WBD) has estimated its write-offs will go up by $800m-$1bn as the company revised pre-tax restructuring charges in an ongoing bid to rein in content spend and make Wall Street happy.
Meanwhile it has emerged that WBD-owned DC Studios has told Henry Cavill he will no longer play Superman, days after DC Studios shelved Wonder Woman 3.
In a filing with the US Securities And Exchange Commission on Wednesday the company disclosed it was revising upwards its previously disclosed pre-tax restructuring charges estimates from $3.2bn-$4.3bn to $4.1bn-$5.3bn.
Estimated content impairment and development write-offs are going up from $2bn-$2.5bn to $2.8bn-$3.5bn and WBD said the number could go up. Restructuring is expected to be “substantially completed” by the end of 2024.
Zaslav’s lieutenants are scouring the company for cost-savings in the wake of the merger with WarnerMedia after Wall Street shifted its perspective this year and began to take a dim view on unfettered content spending by streamers.
WBD has implemented lay-offs and more are expected at the company’s large media and entertainment stable which includes CNN.
Batgirl was shelved earlier this year allowing WBD to take a $90m tax deduction related to that. Wonder Woman 3 has been shelved for now at DC Studios, the newly named comic book division led by James Gunn and Peter Safran.
The executives have parted ways with Cavill as Superman. According to reports Gunn is writing a Superman screenplay and the plan is to cast a younger actor. The executives spoke to Cavill about the move earlier this week and hinted at future projects together down the road.
It emerged this week that prestige HBO shows like Westworld and The Nevers are to be licensed to free, ad-supported streaming platforms. Others are likely to follow.
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