Paramount announces layoffs, write down ahead of merger

The Street

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.

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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