Paramount Global writes down cable networks value, cuts jobs; streaming profit boosts shares
-Paramount Global wrote down the value of its cable networks by nearly $6 billion and announced Thursday it would cut 15% of its US workforce, as the media conglomerate navigates the decline of the cable television business.
The company's Paramount+ and PlutoTV services reported an operating income of $26 million in the second quarter, compared with a loss of $424 million a year earlier. The pending Skydance merger forced Paramount to reassess the value of each of its units, based on deal's implied enterprise value of the company. This impairment dragged the company into an operating loss of $5.3 billion for the second quarter.
The job cuts are expected to lead to charges of $300 million to $400 million in the third quarter, Paramount executives said on the investor call. The company is looking at a variety of additional cost-reduction plans, CFO Naveen Chopra said.
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