Sharp Declines in "Warner Bros. Discovery" Stock

Shares of Warner Bros. Discovery fell 12 percent in pre-market trading on Thursday after a $9.1 billion write-down of the company's television broadcasting assets raised new concerns about its traditional television business. The company reported a net loss of $10 billion for the second quarter due to the write-down and failed to meet Wall Street's quarterly earnings estimates, overshadowing strong subscription growth in streaming services supported by the introduction of lower-priced ad-supported subscription tiers and the expansion of the Max streaming service into new markets. The results also reflected the impact of losing a major sports broadcasting deal amid the broader shift to digital streaming. Since its formation following a merger between Warner Media, which was a subsidiary of AT&T, and Discovery in April 2022, the company has lost over $40 billion in market value. Before Wall Street opened, the stock, which has lost more than 32 percent of its value so far this year, was the biggest loser on the S&P 500 index. If losses continue, the stock will open at its lowest level in more than 15 years and will have lost more than $2 billion in market value.