Paramount and Warner Bros. face massive cable write-downs amid streaming challenges, with Warner Bros. shares plunging to a new low.
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Thursday Paramount global took a $6 billion write-down on its cable business, the day after Warner Bros. did the same for $9 billion. Both companies are struggling to showcase how they will beat expectations of their streaming bets to make up for these massive losses. While cable is challenged, analysts believe there will be a strong demand that carries on into the future as live sports networks like ESPN still have ownership over their live sports. Big hits from subscription sales & advertising sales come with viewers switching from cable to streaming. Warner Bros. shares plunged 9.9% to $6.95, the lowest price since the stock of the merged company began trading in April 2022. The results over the past 2 years on the market showcase a negative return of 70%.
