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Warner Bros Discovery’s content tax write-off ends as CFO again rebukes entertainment business for ‘spending spree’

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days warner bros found Cuts for tax purposes allegedly over CFO Gunnar Wiedenfels.

After a series of brutal job cuts in 2022, including the closure of the mainstay of the big budget batgirlHBO TV Series Killing JJ Abrams half asleepremove the TBS series such as The Big D, Chad and kill the orange bear and numerous cancellations, including west world“We’re done with that chapter,” Wiedenfels said.

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At Citi’s media conference, the executive also took the opportunity to again denounce the industry’s profligacy. Asked by moderator and senior Citi analyst Jason Bazinet where the company sits on the spectrum between direct-to-consumer and wholesale content production for distribution by others, Wiedenfels replied, “The truth is somewhere in the middle.”

“It took us a little while to make sure we got it right,” Wiedenfels says, which is why the process took up to seven months.

“It’s really important for all of us to really use 2020 to put procurement accounting behind us, put those initial strategic changes behind us, get everything, get everything in terms of our restructuring estimates, and then be able to Turn the page and move on,” he added.

WBD has received “a lot of public noise about the content write-offs we’ve taken,” the executive continued. This “reflects an industry that has gone overboard and continued to spend like crazy. There’s a lot of thinking, ‘Let’s do more, more, more’ and not necessarily ‘Let’s do the right thing, let’s do what works. ‘”

The company expects $3.5 billion in cost savings from the merger.

The decline in WBD shares in recent months reflects widespread uncertainty about the merger. Priced near $25 when the deal closed last April, it fell below $9 last year, though it’s off to a strong start to the week. The stock was up about 6% in midday trading today, to around $11.

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