This thread has lots of people talking about taxes. Not a single explanation or link about what that actually means...
Batgirl movie cancelled
This thread has lots of people talking about taxes. Not a single explanation or link about what that actually means...
trappedslider
Legend
This thread has lots of people talking about taxes. Not a single explanation or link about what that actually means...
Why did Warner Brothers kill a $90 million Batgirl movie starring Michael Keaton as Bruce Wayne? A big tax write-off probably isn’t the only reason
While Warner Bros. says the decision to call off the $90 million Batgirl is due to its recent merger with Discovery, a tax attorney says there's likely more to the story.
When Warner Bros. files its taxes this year, explains Blum, the company will combine the income from its profitable movies with its losses to determine its taxable income. The loss from Batgirl would lower that taxable income significantly.
GreyLord
Legend
I've been looking up on this, and THIS entire situation looks bad.
I don't know HOW this merger even got approved. If people own stock in WB, they SHOULD be absolutely furious at this point. Enough to sue Discovery to the ground and undo the merger.
The CEO of Discovery is using this as a prop for Discovery (a no name channel which doesn't have half the brand recognition in my opinion that HBO/WB does) with NO benefit to HBO or WB.
He is cancelling out all the unique shows for HBO Max for the most part in favor of HBO Prime (70 million for max vs. 24 million for Prime...WTH is this guy on) and will mostly have the shows that survive seemingly be moving to Discovery+ (what, and their 20K paying subscribers as opposed to the others who they get no money from?)
He seems to subscribe to the same algorithm models that sunk other channels that went with this idea...which works when you only have a small budget channel for a very small subscriber base...but he's killing whatever worth HBO and WB have overall.
This stock should plummet over the next month if what I'm reading is correct. This guy is BAD news. He's going to sink an entire brand quicker than you can say lickity split!
Unique programming that HBO is famous for is moving to only be on the 24 million subscriber channel on Cable, with them basically going all in on the 20K (just a guess) paying (vs non-paying around 24 million) subscriber streaming channel of Discovery+ and gutting the 70 million subscriber channel of HBO max.
Who in their right mind okay'd this???
Glad I don't own stock in WB right now. This seems like someone intentionally destroying WB and HBO in hopes that they can prop up their own small channel empire.
In a year, if it turns out as bad is it may, if there is someway the stockholders can sue the living bejebus out of this CEO for everything he had for wasting and running their money down the tubes...they should.
I don't see him getting back that 3-7 Billion they went into debt over this for, even with the tax cuts they'll get. It APPEARS that he is going for financial suicide or something. I can't see how this was approved, but maybe there is some golden lining that will come out tomorrow when they talk about it.
PS - They are going to kill most of the shows on HBO MAX, remove a LOT of the current content, and new content will be a lot of reality based shows. I don't think they understand the current streaming audiences of today nor what HBO max could have as value, even if they didn't touch a thing and just left it as it was, it would generate more money then what I'm hearing of Discovery's current plan for it.
I don't know HOW this merger even got approved. If people own stock in WB, they SHOULD be absolutely furious at this point. Enough to sue Discovery to the ground and undo the merger.
The CEO of Discovery is using this as a prop for Discovery (a no name channel which doesn't have half the brand recognition in my opinion that HBO/WB does) with NO benefit to HBO or WB.
He is cancelling out all the unique shows for HBO Max for the most part in favor of HBO Prime (70 million for max vs. 24 million for Prime...WTH is this guy on) and will mostly have the shows that survive seemingly be moving to Discovery+ (what, and their 20K paying subscribers as opposed to the others who they get no money from?)
He seems to subscribe to the same algorithm models that sunk other channels that went with this idea...which works when you only have a small budget channel for a very small subscriber base...but he's killing whatever worth HBO and WB have overall.
This stock should plummet over the next month if what I'm reading is correct. This guy is BAD news. He's going to sink an entire brand quicker than you can say lickity split!
Unique programming that HBO is famous for is moving to only be on the 24 million subscriber channel on Cable, with them basically going all in on the 20K (just a guess) paying (vs non-paying around 24 million) subscriber streaming channel of Discovery+ and gutting the 70 million subscriber channel of HBO max.
Who in their right mind okay'd this???
Glad I don't own stock in WB right now. This seems like someone intentionally destroying WB and HBO in hopes that they can prop up their own small channel empire.
In a year, if it turns out as bad is it may, if there is someway the stockholders can sue the living bejebus out of this CEO for everything he had for wasting and running their money down the tubes...they should.
I don't see him getting back that 3-7 Billion they went into debt over this for, even with the tax cuts they'll get. It APPEARS that he is going for financial suicide or something. I can't see how this was approved, but maybe there is some golden lining that will come out tomorrow when they talk about it.
PS - They are going to kill most of the shows on HBO MAX, remove a LOT of the current content, and new content will be a lot of reality based shows. I don't think they understand the current streaming audiences of today nor what HBO max could have as value, even if they didn't touch a thing and just left it as it was, it would generate more money then what I'm hearing of Discovery's current plan for it.
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Hex08
Hero
The thing is, whether it's taxes, poor reactions at screenings, a business model shift or a command by alien overlords it's all speculation since the company is remaining quiet. Unless Warner Bros Discovery (or whatever the name of the new company is) actually gives statement we will never know.
Hex08
Hero
Because this is modern America, do we ever NOT approve a merger anymore?
GreyLord
Legend
I think there is supposed to be a comment on the plan going forward tomorrow from what I've been reading online.
It's not that merger's don't get approved, but normally mergers are beneficial to BOTH sides. This one seems to be parasitical.
Unless the shareholders as a group were all planning to sell their shares in the next few weeks and abandon ship as a whole, normally driving a company to the ground in a spasmodically short period of time is NOT what they sign up for or what they want. They want annual profits. Not a quick flash in the bang which brings a very quick (and normally lower than annual) profit.
This guy looks like he's going to take a potential company that has more income coming in than Discovery by several times (the problem isn't how much it's making, but how much they were spending which was more than HBO max was bringing in), and drive it to the ground. They paid Billions for this (which most shareholders haven't probably seen yet, and transfers to a debt for the company that bought it). Even with the Tax write offs, they can transform 4 Billion of it probably into something that is no longer owed, but still be 3 Billion in debt perhaps from what I'm reading. If you KILL the profit generation of the company you bought, you then still owe that money.
You don't waste a company bringing in a Billion a year (sure, that's going to take several years to make it up, but that's why you pay the high up front cost) to try to prop up a subsidiary company that is making 100 million a year.
But that's exactly what it appears this guy is doing. He should have a extract point in his contract for the 250 million he just earned for getting this merger that if he burns the companies within the next two years, he OWES double that. But of course that's never what these CEO's get, they all get golden parachutes.
Unless they start talking some golden plan, with the most recent moves and announcements, I'm going to say I'm going to start seeing a sell off of the stock, and perhaps a big crash for that company in the next 6 months.
BUT, I guess everyone will see (as long as they follow through with their statements to talk about it soon) in the next few days whether there is some smarter master plan or not. (edit - The strategy call for the media is tomorrow afternoon).
If not, I expect some major rumblings from the big stockholders coming soon against this guy or the moves he is making.
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Enevhar Aldarion
Hero
Is this just getting a lot of coverage because superhero movies are the hot thing lately? Plenty of movies get shelved, temporarily or permanently, every year and there is barely a peep about any of them from the Press.
Hex08
Hero
I get with what you are saying and agree this is a dumpster fire (it was ever since AT&T purchased Warner Bros in my book). Maybe I am cynical, but all modern mergers are parasitical in my view. Take AT&T's purchase of Warner as an example. AT&T promised the government lower prices if the merger was approved but within weeks of it closing they raised prices, and nothing was or could be done.
I can see ways where this becomes a win for the new company. They move scripted content to HBO but if you want to stream it you have to pay for the HBO Max app. Otherwise, they do what Discovery does best, produce tons of inexpensive scripted reality TV shows that the general public eats up and is hugely profitable. The advantage is the quality HBO shows and the garbage Discovery shows are now both available on HBO Max (or whatever the combined Discovery+/HBO Max app becomes) at an inflated subscription price and audiences of Prestige TV and reality TV will now have a one-stop shop app.
Hex08
Hero
Partially that I think. Also because the actress is Dominican (maybe?) so it shut down a non-white superhero movie, it had Michaeel Keaton as Batman (still a popular move) and it really did seem to be a big part of AT&T/Warners plans to have the DCEU spread across cinematic releases and straight to streaming. From reports there was already 90+ million spent on this movie that was in post-production. Plus, we nerds get pissed easily
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trappedslider
Legend
It's notable because it was in post-production, and it was already delayed due to covid and was also slated to be released this year. Also
And now it looks like Supergirl has also gotten the Axe and the House Party reboot which was supposed to have been released last week has either been shelved or moved to be shown in theaters instead.
