Warner Bros Discovery updates on massive restructuring write-offs

A week ahead of its Q3 2022 results (Nov 3), Warner Bros. Discovery has made an SEC Filing in the US which says that the company expects to complete its post-merger restructuring efforts by the end of 2024 with total charges coming in between $3.2-$4.3 billion. This figures includes content and development write-offs of $2-$2.5bn.

David Zaslav

The charges, which also include organisational restructuring, facility consolidation and contract termination costs, are part of the merged company’s plan to achieve $3 billion cost efficiencies. For Q3 alone, the company will take a hit of around $1.3-$1.6bn in pre-tax restructuring charges, primarily from content write-downs.

The company has made the headlines in recent months for scrapping projects like Batgirl at enormous expense. But there has also been a steady drip feed of staff cuts at divisions such as Warner Bros Television and HBO Max.

The merged company’s share price has been under pressure since the deal was announced. It is currently trading at just over half the price it was at merger ($13). The restructuring is being overseen by Warner Bros Discovery CEO David Zaslav.