Warner Bros Discovery (WBD) CEO David Zaslav is facing increasing pressure after the company was forced to take a significant $11.2 billion writedown following the loss of NBA rights to competitor Amazon.
WBD has initiated legal action to reclaim the basketball rights, but optimism regarding a successful outcome is limited. The company's stock market value plummeted by 11% on Wednesday, adding to an already substantial 34% decline year-to-date. As a result, WBD is exploring the possibility of selling off assets to regain investor confidence.
"In light of industry headwinds, we have and will continue taking bold steps, like reimagining our existing linear partnerships and pursuing new bundling opportunities, with the goal to get Max on the devices of more consumers faster and at a fraction of the acquisition cost," Zaslav stated in a prepared statement.
WBD recently reported Q2 revenues of $9.7 billion, a 5% decrease compared to the same period in 2022. The company incurred $10 million in losses, including the impairment charge. A positive development was observed in its direct-to-consumer services, which encompass Discovery+, HBO Max, and Max depending on the region. These services witnessed a growth of 3.6 million subscribers following the extensive rollout of Max in Europe.