Paramount announces layoffs, write down ahead of merger
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Paramount is laying off roughly 2,000 employees.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:04On the heels of its best day since 2022,
00:07Wall Street is digesting clues on the health of the economy
00:11and corporate earnings.
00:12Second quarter sales and profits at Expedia
00:15topped analyst forecasts thanks to solid demand
00:18for international vacations.
00:20But Capri Holdings, parent of luxury brands
00:22like Versace, Jimmy Choo, and Michael Kors,
00:25missed targets, blaming weak global demand for luxury items.
00:30Sticking with weak demand, the media world
00:32continues to struggle in a changing landscape.
00:35Paramount Global is laying off 15%
00:38of its workforce, which works out to about 2,000 staff
00:41members.
00:41The layoffs come as the traditional cable TV
00:44industry hemorrhages viewers and ad dollars disappear in tandem.
00:48Paramount is lowering the value of its cable TV networks
00:51by $6 billion, quote, primarily as a result
00:56of recent indicators in the linear affiliate marketplace
00:59and the estimated total company market value indicated
01:02by the Skydance transactions.
01:05Paramount is in process of merging with Skydance,
01:08the latest member of old Hollywood
01:10to be gobbled up by new Hollywood.
01:12Discovery bought the venerable Warner Brothers Media Empire
01:15back in 2021, which includes CNN, TNT,
01:19and a famed movie studio.
01:20But with the cable assets in freefall,
01:23Warner Brothers Discovery took a second quarter
01:25write-down of $9.1 billion.
01:28Now, streaming was supposed to be a media savior,
01:32but that is proving to be difficult,
01:34as industry champ Netflix continues
01:36to take the lion's share of revenue and profit.
01:40That'll do it for your daily briefing.
01:41From the New York Stock Exchange,
01:43I'm Conway Gittins with The Street.