Paramount announces layoffs, write down ahead of merger

The Street
The Street
  • 2 months ago
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.

Category

🥇
Sports
Transcript
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.

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