When AT&T decided to offload WarnerMedia on Discovery Communications, a big part of the deal’s premise was creating a “stronger competitor in global streaming.” Nearly two years after the deal was first announced and a year after the merger was completed, Warner Bros. Discovery is finally set to unveil details about a new service that combines HBO Max and Discovery+ on Wednesday.
Much has changed for the company and the industry in the intervening time since its creation. Where Wall Street once pressed companies to grow streaming subscribers, analysts and investors are now closely scrutinizing plans to turn direct-to-consumer businesses profitable.
Warner Bros. Discovery, which faces a heavy debt load, has been undergoing a major restructuring, one it expects to complete by the end of 2024. The company estimated in December that it would incur up to $5.3 billion in total pre-tax restructuring charges, including up to $3.5 billion in content impairment and development write-offs.
Much has changed for the company and the industry in the intervening time since its creation. Where Wall Street once pressed companies to grow streaming subscribers, analysts and investors are now closely scrutinizing plans to turn direct-to-consumer businesses profitable.
Warner Bros. Discovery, which faces a heavy debt load, has been undergoing a major restructuring, one it expects to complete by the end of 2024. The company estimated in December that it would incur up to $5.3 billion in total pre-tax restructuring charges, including up to $3.5 billion in content impairment and development write-offs.
- 4/11/2023
- by Lucas Manfredi
- The Wrap
Following the Warner Bros. Discovery merger one year ago, some members of Congress have petitioned the Department of Justice to launch an inquiry into alleged anti-competitive behavior.
In a letter to the Department of Justice, Democratic representatives Elizabeth Warren, Pramila Jayapal, David Cicilline, and Joaquin Castro suggested that the “Warner Bros. Discover merger market share has enabled it to harm workers and heighten barriers to entry in the media and entertainment industry.” The implication is that harsh tactics employed by the company have adversely affected employees and those employed in the media and entertainment business. The lawmakers allege this harms the ability to fight for improved wages and job conditions by competing in the market.
WarnerMedia and Discovery officially became Warner Bros. Discovery in 2022, a year after announcing the intended merger. As a result, HBO Max, discovery+, and channels like CNN, TBS, and TNT all found a home under the same banner.
In a letter to the Department of Justice, Democratic representatives Elizabeth Warren, Pramila Jayapal, David Cicilline, and Joaquin Castro suggested that the “Warner Bros. Discover merger market share has enabled it to harm workers and heighten barriers to entry in the media and entertainment industry.” The implication is that harsh tactics employed by the company have adversely affected employees and those employed in the media and entertainment business. The lawmakers allege this harms the ability to fight for improved wages and job conditions by competing in the market.
WarnerMedia and Discovery officially became Warner Bros. Discovery in 2022, a year after announcing the intended merger. As a result, HBO Max, discovery+, and channels like CNN, TBS, and TNT all found a home under the same banner.
- 4/10/2023
- by Ree Winter
- The Streamable
Nearing the one year anniversary of Discovery and AT&T’s WarnerMedia merger, four Democrats in Congress are calling for the Department of Justice to reassess the deal.
In a letter to the Justice Department’s top enforcers, the lawmakers say that the merger has enabled Warner Bros. Discovery to “adopt potentially anticompetitive practices” that prompted numerous layoffs and reduced programming options for consumers. They allege that “current competition in the media and entertainment industry is inadequate.”
Months before the $43 billion deal was blessed, 30 members of Congress warned the agency in a letter in Dec. 2021 that the resulting competition vacuum would harm workers and consumers. Among the concerns they advanced was that it could dampen “economic opportunity for workers” on top of diverse programming, which became a common criticism after the company canned its $90 million HBO Max film Batgirl, the first DC movie led by a Latina, for a tax write-off.
In a letter to the Justice Department’s top enforcers, the lawmakers say that the merger has enabled Warner Bros. Discovery to “adopt potentially anticompetitive practices” that prompted numerous layoffs and reduced programming options for consumers. They allege that “current competition in the media and entertainment industry is inadequate.”
Months before the $43 billion deal was blessed, 30 members of Congress warned the agency in a letter in Dec. 2021 that the resulting competition vacuum would harm workers and consumers. Among the concerns they advanced was that it could dampen “economic opportunity for workers” on top of diverse programming, which became a common criticism after the company canned its $90 million HBO Max film Batgirl, the first DC movie led by a Latina, for a tax write-off.
- 4/7/2023
- by Winston Cho
- The Hollywood Reporter - Movie News
Ahead of the one-year anniversary of the Warner Bros. Discovery merger, four Democratic lawmakers have called on the Department of Justice to investigate the company.
A letter to Attorney General Merrick Garland and Assistant Attorney General Johanthan Kanter from Sen. Elizabeth Warren (D-Massachusetts), Rep. Joaquin Castro (D-Texas), Rep. David Cicilline (D-Rhode Island) and Rep. Pramila Jayapal (D-Washington) claims that the merger has appeared to have enabled the company to “adopt potentially anticompetitive practices that reduce consumer choice and harm workers in affected labor markets.”
Thousands of jobs cut, content creators harmed in unprecedented ways, less consumer choice. Mergers aren’t automatically good for business or people. (2/2)
— Joaquin Castro (@JoaquinCastrotx) April 7, 2023
Discovery closed its $43 billion merger of WarnerMedia in April 2022, which was ultimately not challenged by the DOJ after a review.
Also Read:
Warner Bros. in Talks to Produce ‘Harry Potter’ TV Series for HBO Max
The letter cites several workforce...
A letter to Attorney General Merrick Garland and Assistant Attorney General Johanthan Kanter from Sen. Elizabeth Warren (D-Massachusetts), Rep. Joaquin Castro (D-Texas), Rep. David Cicilline (D-Rhode Island) and Rep. Pramila Jayapal (D-Washington) claims that the merger has appeared to have enabled the company to “adopt potentially anticompetitive practices that reduce consumer choice and harm workers in affected labor markets.”
Thousands of jobs cut, content creators harmed in unprecedented ways, less consumer choice. Mergers aren’t automatically good for business or people. (2/2)
— Joaquin Castro (@JoaquinCastrotx) April 7, 2023
Discovery closed its $43 billion merger of WarnerMedia in April 2022, which was ultimately not challenged by the DOJ after a review.
Also Read:
Warner Bros. in Talks to Produce ‘Harry Potter’ TV Series for HBO Max
The letter cites several workforce...
- 4/7/2023
- by Lucas Manfredi and Dessi Gomez
- The Wrap
Four Democratic lawmakers want the Justice Department to investigate Warner Bros Discovery, claiming that the merged company has harmed workers and reduced consumer choice.
Sen. Elizabeth Warren (D-ca), Rep. Joaquin Castro (D-tx), Rep. David Cicilline (D-ri) and Rep. Pramila Jayapal (D-wa) wrote in a letter to Attorney General Merrick Garland and DOJ antitrust chief Jonathan Kanter that the merger “appears to have enabled” the company to “adopt potentially anticompetitive practices that reduce consumer choice and harm workers in affected labor markets.”
WarnerMedia and Discovery were combined last year in a transaction that was not challenged by the DOJ after a review.
“The company has the incentive and ability to eliminate broad swaths of its workforce, leaving workers with fewer choices for employment and advancement,” the lawmakers wrote in their letter (read it here). They cited the layoffs over the past year, including the shutdown of CNN+, as well as later...
Sen. Elizabeth Warren (D-ca), Rep. Joaquin Castro (D-tx), Rep. David Cicilline (D-ri) and Rep. Pramila Jayapal (D-wa) wrote in a letter to Attorney General Merrick Garland and DOJ antitrust chief Jonathan Kanter that the merger “appears to have enabled” the company to “adopt potentially anticompetitive practices that reduce consumer choice and harm workers in affected labor markets.”
WarnerMedia and Discovery were combined last year in a transaction that was not challenged by the DOJ after a review.
“The company has the incentive and ability to eliminate broad swaths of its workforce, leaving workers with fewer choices for employment and advancement,” the lawmakers wrote in their letter (read it here). They cited the layoffs over the past year, including the shutdown of CNN+, as well as later...
- 4/7/2023
- by Ted Johnson and Jill Goldsmith
- Deadline Film + TV
The Senate on Thursday voted in favor of a resolution to “terminate” President Trump’s national emergency declaration. The vote marks a stunning bipartisan rebuke of the president, who last month used his executive privilege to circumvent Congress and fund the construction of a wall along the southern border. Though the Gop holds a 53-47 advantage over Democrats in the Senate, the measure passed by a vote of 59-41, with 12 members of Trump’s own party voting against him.
All Republicans have voted. A dozen crossed Trump: Alexander, Blunt, Collins,...
All Republicans have voted. A dozen crossed Trump: Alexander, Blunt, Collins,...
- 3/14/2019
- by Ryan Bort
- Rollingstone.com
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