Warner Bros. Discovery to split
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The studio and cable conglomerate that David Zaslav created couldn’t overcome outside forces and massive debt.
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Coupled with the HBO Max reversion that occurred just last month, the redivision of WBD might be yet another obvious indication that Zaslav should probably not have custody of so much American cultural history.
Warner Bros. Discovery is splitting up after just over three years, and Wall Street is cheering. The spinoff will create a slew of new questions.
David Zaslav insisted that Discovery Communications together with what was then called WarnerMedia was more than the sum of its parts. They had a “formidable” lineup of global assets, he said. "When you put us together - Batman,
Said one top executive: "It’s a deal that never had a shot and shouldn’t have been done. But they’ve also done a terrible job.”
Shareholders at Warner Bros. Discovery gave a thumbs down to the company’s executive compensation for 2024 — multi-million dollar paydays led by CEO David Zaslav’s $51.9 million package.
The entertainment company is expected to become one of the first borrowers to restrict creditors from forming cooperation groups.
Credit ratings agency Fitch Ratings on Wednesday downgraded Warner Bros Discovery to junk status following the company's announced split-up earlier this week, as investors weigh the deal's likely impact on holders of its debt.