A wave of angry analyst notes followed last week’s downgrade by Standard & Poor’s. Warner BrosThe company’s $41 billion debt has gone from stable to negative. According to Enders Analysis analyst Tom Harrington, the fall in the last quarter is not especially worse than in previous periods, but the write-down and the future impact of losing NBA games have crystallized the decline in the eyes of investors, hence the reaction. The main problem that Zaslav faces, while Disney does not, is that the latter lacks truly mass content, a prerequisite for success in streaming, which is also necessary to offset the loss in linear television.
David Zaslav, who oversaw the fact-based Discovery Channel, proposed an ambitious merger with the most recognizable movie studio in Hollywood history and has been in charge of Warner Bros. Discovery since 2022. According to Harrington, Zaslav believed Warner was necessary because its content was not the kind that consumers would pay for outright, even if they were happy to have it appear on their cable package.
In 2020, David Zaslav felt that Discovery’s mix of sports and factual programming was the best option. He clarified that there were too many streaming services offering scripted content. Tens of millions of subscribers would be drawn to real-life sports and entertainment over the next two years, prompting a restructuring.
Read also: Worms at the Democratic National Convention Breakfast? Here’s What the FBI SaysHis initial behavior after the merger does not indicate that he was not affected by the glitz and glamour of movies and celebrities. After moving to Hollywood from New York, he moved into Jack Warner’s old Hollywood office and moved the mogul’s desk out of the warehouse. Zaslav seems to have given up on his ambition to create an empire, as investors are now turning against him. The executive began talking about breaking up the business around the time he lost the NBA rights. He sold the Warner Bros. studio and the awkwardly rebranded streaming service. HBO Max to Max, and will soon rebrand HBO Once again, the company’s debt would remain tied to its ailing television networks, a move Bank of America viewed as potentially devastating.
Frequently Asked Questions:
Who is David Zaslav?
David Zaslav is the CEO of Warner Bros. Discovery. He also leads major brands such as HBO, CNNand Images from Warner Bros..
Why is everything going wrong for Warner Bros. Discovery?
The company is struggling with declining sales, the loss of key sports rights and problems with its content strategy, which has investors and analysts worried.
Disclaimer: This content is the work of a third party. The views expressed here are those of the respective authors/entities and do not represent the views of Economic Times (ET). ET does not guarantee, endorse or support any of its contents nor is it responsible for them in any manner. Please take all necessary steps to ensure that the information and content provided is correct, up-to-date and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content contained therein.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.