HBO Max/Discovery+ Merger

[Bruce]

Warner/Discovery 1st Quarter Report is tomorrow, I am predicting it might be disastrous based on this news-

Today Bloomberg reported that Warner Bros. Discovery will be cutting more staff and raising the price of Max. The exact details have not been announced, but people who are knowledgeable about the matter have talked to Bloomberg about the price hike and job cuts.

And I was correct-

WBD’s overall net loss for the first quarter of 2024 was $966 million. Free cash flow stood at $390 million. The company paid $515 million in net interest expense in Q1.

Warner Bros. Discovery Misses Q1 Expectations, TV Ad Sales Down 11% as Streaming Revenue Flat

Warner Bros. Discovery reported its first-quarter 2024 earnings Thursday, revealing it had reached 99.6 million streaming subscribers in a tough quarter for studios and networks.

variety.com

I have been posted over and over that advertising is down, mostly on the Broadcast and Cable Channels, because of Cord Cutting (less people watching), here-

TV ad sales were down 11% at $1.99 billion.

https://www.cnbc.com/2024/05/09/warner-bros-discovery-wbd-earnings-q1-2024.html

 

[Yespage]

$515 million in interest for one quarter, and they have $300ish million in hand? I smell a merger.

 

[Bruce]

$515 million in interest for one quarter, and they have $300ish million in hand? I smell a merger.

The only one that was rumored was Comcast, they have already announced they have no interest and the Government might say no anyways, because of loss jobs when they would merge departments.

Comcast is also holding about $96 Billion in debt, so a merger/buying of Warner would increase that (Warner currently has $43 Billion in debt, but only a $20 Billion market cap and total liabilities of $76 Billion).

 

[Yespage]

The only one that was rumored was Comcast, they have already announced they have no interest and the Government might say no anyways, because of loss jobs when they would merge departments.

Comcast is also holding about $96 Billion in debt, so a merger/buying of Warner would increase that (Warner currently has $43 Billion in debt, but only a $20 Billion market cap and total liabilities of $76 Billion).

...I smell insolvency and vultures picking the bones.

 

[Scott Greczkowski]

Cant remember the last time I used HBO Max.

 

[Bruce]

...I smell insolvency and vultures picking the bones.

I am amazed it has been going this long without a Chapter 11.

 

[glrush]

WBD is also between a rock and a hard place in their negotiations with the NBA. There is much reporting that NBC is considering a bid and that the NBA is close to renewing its contract with Disney along with a deal with Amazon.

David Zaslav and Warner Bros. Discovery feeling the squeeze as NBA rights hang in the balance

Time is running out for David Zaslav and Warner Bros. Discovery as the embattled media giant is on the verge of losing NBA rights.

awfulannouncing.com

 

[Bruce]

WBD is also between a rock and a hard place in their negotiations with the NBA. There is much reporting that NBC is considering a bid

You are about a week late, NBC already offered $2.5 Billion, Warner can match.

and that the NBA is close to renewing its contract with Disney along with a deal with Amazon.

Has offers from both, will total about $8 Billion a year for all three deals.

 

[glrush]

You are about a week late, NBC already offered $2.5 Billion, Warner can match.

Has offers from both, will total about $8 Billion a year for all three deals.

Per this article, there may be some question on what "match" means:

TNT Sports' NBA future may depend on interpretation of 'matching rights'

A debate over "matching rights" seems to have WBD (TNT Sports' parent) CEO David Zaslav and NBA commissioner Adam Silver on opposite sides.

awfulannouncing.com

 

[Bruce]

MAX price is going up.

I was able to take advantage of the 4K Plan at $139 yearly deal two months ago, if not, doubt I would continue with the service, the lack of new content does not justify the new prices

• Ad-Free | The monthly Ad-Free plan will increase by $1 per month, making the new price $16.99/month. The yearly Ad-Free plan will increase by $20 per year, making it $169.99/year.
• Ultimate Ad-Free | The monthly Ultimate Ad-Free plan will increase $1 per month, making the new price $20.99/month. The yearly Ultimate Ad-Free plan will increase by $10 per year, making it $209.99/year.

Max is Raising The Price of Its Ad-Free Plans | Cord Cutters News

Today, Warner Bros. Discovery announced a price hike for the ad-free Max plans. Customers on ad-supported plans will not see a new price hike. Here is what you need to know: Current customers will see their prices go up on their next bill on or after July 4, 2024. New customers will see this...

cordcuttersnews.com

 

[Yespage]

Is there any word on when B/R being "free" becoming not free? Le Mans has come and past and was happy to get that in with this. B/R was supposed to cost money months ago.

 

[Bruce]

Well, more they do not seem like they know what they are doing or tossing things at the wall to see what sticks logic, getting rid of MAX originals.

HBO and Max content CEO Casey Bloys is reportedly set to move most of Max’s big-budget, tentpole Warner Bros.-produced IP titles under the HBO branding.

Yet they had tossed the HBO name into the trash can, when they changed the name of their streaming service.

My guess, another name change coming soon, either HBO+ or HBOMAX+ (which is what they should have done when they switched it to just MAX).

DC "Lanterns," "Potter" Series Go To HBO - Dark Horizons

In a move that seemed inevitable, the rather fuzzy line between originals premiering on HBO and those on Max is about to collapse. HBO and Max content CEO Casey Bloys is reportedly set to move most of Max’s big-budget, tentpole Warner Bros.-produced IP titles under the HBO branding. As a result...

www.darkhorizons.com

 

[ncted]

Well, more they do not seem like they know what they are doing or tossing things at the wall to see what sticks logic, getting rid of MAX originals.

HBO and Max content CEO Casey Bloys is reportedly set to move most of Max’s big-budget, tentpole Warner Bros.-produced IP titles under the HBO branding.

Yet they had tossed the HBO name into the trash can, when they changed the name of their streaming service.

My guess, another name change coming soon, either HBO+ or HBOMAX+ (which is what they should have done when they switched it to just MAX).

DC "Lanterns," "Potter" Series Go To HBO - Dark Horizons

In a move that seemed inevitable, the rather fuzzy line between originals premiering on HBO and those on Max is about to collapse. HBO and Max content CEO Casey Bloys is reportedly set to move most of Max’s big-budget, tentpole Warner Bros.-produced IP titles under the HBO branding. As a result...

www.darkhorizons.com

 

[Bruce]

You can put up as many GIFs as you wish, since taking over Warner from AT&T, they have made it worse ( which is amazing since AT&T basically destroyed it).

Losses continue (negative $966,000,000 in Q1 2024), a bunch of flop movies or barely breaking even, because of way to high budgets, losing more then 2 Million per sub fees every quarter for all their basic cable channels, lost the NBA, etc.

Has lost the Prestige TV Series marker to other streaming services, specially Apple TV, what does HBO have, 1 right now, will be back in 2 years.

And a market cap of $17 Billion, but current debt of $42 Billion.

 

[osu1991]

It's laughable how badly they have screwed this up over the last decade.

 

[KAB]

Well, more they do not seem like they know what they are doing or tossing things at the wall to see what sticks logic, getting rid of MAX originals.

HBO and Max content CEO Casey Bloys is reportedly set to move most of Max’s big-budget, tentpole Warner Bros.-produced IP titles under the HBO branding.

Yet they had tossed the HBO name into the trash can, when they changed the name of their streaming service.

My guess, another name change coming soon, either HBO+ or HBOMAX+ (which is what they should have done when they switched it to just MAX).

DC "Lanterns," "Potter" Series Go To HBO - Dark Horizons

In a move that seemed inevitable, the rather fuzzy line between originals premiering on HBO and those on Max is about to collapse. HBO and Max content CEO Casey Bloys is reportedly set to move most of Max’s big-budget, tentpole Warner Bros.-produced IP titles under the HBO branding. As a result...

www.darkhorizons.com

I did not get that from what I read elsewhere. They are going to first put on HBO linear, then release on Max next day, like Shogun on FX channel, then on Hulu.

 

[Bruce]

I did not get that from what I read elsewhere. They are going to first put on HBO linear, then release on Max next day, like Shogun on FX channel, then on Hulu.

I know that, but my point is they do not seem to know what they are doing, how many times has plans changed since Discovery took over.

Yet, the numbers gets worse and worse as they keep throwing things at the wall to see what sticks.

And why are they falling back to the old Pay TV model, which is losing subscribers 5-7 Million a year.

Yet this-

Max, WBD’s streaming service, could face hundreds of millions of dollars more in slashed budgets, and another increase in subscription prices also seems likely. The cheapest tier of Max costs $15.99 per month.

WBD issued a brief statement, not denying the possibility of more cost cutting and saying it “is focused on long-term growth.”

That was written in May, since then, the price went up a couple of weeks ago.

More cost cutting, Max price hikes reportedly coming to Warner Bros. Discovery

Max is set for another price increase while Warner Bros. Discovery aims to slash costs once again to reach financial goals.

awfulannouncing.com

 

[KAB]

WBD issued a brief statement, not denying the possibility of more cost cutting and saying it “is focused on long-term growth.”

Or long term death

 

[Bruce]

Or long term death

I look at things this way, Netflix, basically the same price as MAX, still spends tons of money on content, is profitable, has 269 Million Subscribers.

MAX has a little under 100 Million.

HBO started in the 70’s, it’s name had meaning, yet they tossed it aside, keeps cutting how many shows, putting on content that has already been paid for by Pay TV per sub fees ( the Discovery stuff) to cover up the fact there is less HBO type content.

 

[Yespage]

I didn't understand why they got rid of HBO. It is indeed the premium channel. Since its inception, all the way to about the end of Game of Thrones. To just toss that image away seems silly. Granted, I'm getting older and younger people were way to young to watch The Sopranos, The Wire or weren't even alive when Arli$$ or Kids in the Hall was on. Thirty Helens agree, there still has to be a brand value to HBO.

The big problem is Warner Brothers has DC. And they didn't use it well at all. Disney cruised with Marvel, and finished up a remarkable Infinity War story arc of the likes never produced before, even the bad movies were okay. It helps with the heroes being a bit fallible which doesn't require ridiculous (for comic book movies) storylines. Warner Brothers doesn't have Star Wars, a franchise that has proven you can make awful movies, slap that title on it, and people will still show up.