I knew it was only a matter of time before Warner Brother Discovery would have to do a MASSIVE write-down of some of its intangible assets. I hadn't really put a finger on the possible value of the write-down, but I know it would be large. However, now we know.
Warner Brothers Dscovery has taken a $9 billion write-down of its TV assets.
On many levels this doesn't bode well for the company. WBD still has about $43 billion dollars in combined long-term and short-term debt on its balance sheet and still tens of billions of dollars in intangible assets.
However, the good thing is that the company has been generating relatively decent free cash flow. So, again, that's a good thing.
The companies wanting to buy this company would do well to really knuckle down on doing it's due diligence.
At this point, I give the stock a rating of HOLD.