The company also took a $6 billion write down ahead of its merger with Skydance Media.
Transcript:
CONWAY GITTENS: Here’s what we’re watching on TheStreet today.
On the heels of its best day since 2022, Wall Street is digesting clues on the health of the economy and corporate earnings. Second-quarter sales and profits at Expedia topped analysts forecasts thanks to solid demand for international vacations. But Capri Holdings, parent of luxury brands like Versace, Jimmy Choo, and Michael Kors, missed targets – blaming weak global demand for luxury items.
Sticking with weak demand – the media world continues to struggle in a changing landscape. Paramount Global is laying off 15 percent of its workforce, which works out to about 2,000 staff members.
The layoffs come as the traditional cable TV industry hemorrhages viewers and ad dollars disappear in tandem. Paramount is lowering the value of its cable TV networks by $6 billion, “primarily as a result of recent indicators in the linear affiliate marketplace, and the estimated total company market value indicated by the Skydance transactions.”
Paramount is in process of merging with Skydance; the latest member of old Hollywood to be gobbled up by new Hollywood. Discovery bought the venerable Warner Bros. media empire back in 2021, which includes CNN, TNT, and a famed movie studio. But with the cable assets in free-fall, Warner Bros. Discovery took a second-quarter write down of $9.1 billion.
Streaming was supposed to be a media savior, but that is proving to be difficult, as industry champ Netflix continues to take the lion’s share of revenue and profit.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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