What happened: The layoffs planned for Thursday will force CNN to refocus its activities around a global virtual audience while also reducing production costs, CNBC reported citing sources.
With approximately 3,500 workers worldwide, the cuts are basically consolidated groups and potentially will relocate some exhibition productions to more successful places such as Atlanta.
CNN CEO Mark Thompson recently revealed a more than $70 million investment from Warner Bros. Discovery to fund virtual partnerships, adding strategic recruiting in spaces like knowledge science and product development. In October, the network introduced a virtual paywall that charges regular users $3. 99 per month.
The transformation of the media industry continues as streaming and virtual platforms are replacing classic linear television. NBC News is also offering minor discounts this week, with job cuts estimated at fewer than 50 employees.
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Netflix recently reported a record subscriber expansion of 18. 9 million in the fourth quarter, highlighting the dramatic shift in the industry.
Warner Bros. Discovery is simultaneously navigating complex challenges, including underperformance of film properties like “Joker: Folie a Deux” and the loss of NBA broadcast rights.
Goldman Sachs analyst Michael Ng noted the company’s direct-to-consumer segment remains a potential bright spot, with an estimated 2025 earnings potential.
Media billionaires Jeff Bezos, Marc Benioff and Patrick Soon-Shiong suffered monetary losses last year on their media projects: the Washington Post, Time magazine and the Los Angeles Times, respectively. Despite the wonderful hopes of revitalizing these mythical publications, they continue to face expansion challenges, compounded by falling advertising revenues and the costly transition from published formats to virtual formats.
Price action: Warner Bros Discovery shares closed at $10. 05 on Wednesday, up 2. 87% from normal trading hours. In after-hours trading, inventory was relatively unchanged. With the beyond the year, the inventory is down 4. 65%, according to Benzinga Pro’s knowledge.
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