David Zaslav Says Charter-Disney Fight Feels Like “A Moment” As WBD CEO Talks Carriage Deals, CNN & Hollywood Strikes

Charter seeking to restructure deals with Disney and other programmers as cable bundle shrinks; WBD linear networks make up half of revenue.
WBD focused on restructuring for streaming era since merger; launching ad-supported Max, adding live CNN and sports to streamer.
Longer Hollywood strikes hurting earnings but boosting free cash flow; pushed Dune 2 to 2024.
New CNN head Chris Licht praised; sports streaming announcement coming soon.
Seeking to resolve strikes as a content company that needs writers and actors; hopeful to "get people back to work" and compensated fairly.

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Relevant topic timeline:

8/3/2023

Warner Bros. Discovery loses 1.8M subscribers amid Max rebrand

- Warner Bros. Discovery reported a loss of 1.8 million streaming subscribers in Q2 - The loss is likely due to customers with overlapping accounts getting rid of extra subscriptions - The company now has a total of 95.8 million users, compared to 97.6 million in Q1 - Warner Bros. Discovery CEO reassured investors that the migration to Max has gone well - Total revenues for Q2 were $10.36 billion, with a net loss of $1.24 billion - 70% of existing HBO Max subscribers transitioned to the rebranded Max service

9/5/2023

Warner Bros Discovery expects earnings hit of up to $500 million as strikes drag on

Warner Bros. Discovery expects a financial impact of $300 million to $500 million due to ongoing writers' and actors' strikes, assuming the strikes will continue through the end of the year.

9/6/2023

Warner Bros. Discovery CEO David Zaslav says writers, actors strikes need to end as media industry is in a transitional moment

Warner Bros. Discovery CEO David Zaslav emphasizes the need to end the writers and actors strikes in order to get people back to work and ensure fair compensation, as the company revises its full-year outlook due to the strikes' impact.

9/15/2023

Warner Bros. Discovery Well-Positioned to Pay Down Debt and Increase Value, Despite Near-Term Headwinds

Warner Bros. Discovery (WBD) has a favorable debt structure with low-cost fixed-rate debt, long-term maturities, and minimal near-term refinancing needs, which has beneficial implications for its valuation. The company has already reduced its debt significantly and is on track to achieve its targeted leverage levels. WBD's debt trades at a significant discount, presenting an opportunity for the company to purchase some of its debt at significant discounts.

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Posted 9/6/2023, 10:52:00 PM