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WBD Split Announced

Morally this could be fraud. The bonds were sold with the studio or content creator part of the mix. I am sure the lawyers will keep this thing "legal".

IMHO who ever creates the content will survive in the long run. Movie theaters, Video rentals, OTA TV, Cable, Satellite, and Streaming are just forms of delivery for the content and are subject to technical obsoletion
 
Morally this could be fraud. The bonds were sold with the studio or content creator part of the mix. I am sure the lawyers will keep this thing "legal".

IMHO who ever creates the content will survive in the long run. Movie theaters, Video rentals, OTA TV, Cable, Satellite, and Streaming are just forms of delivery for the content and are subject to technical obsoletion
It seems like they've been playing "hot potato" with the debt a while. I wonder if they can do that for all time?
 
I don't get why they don't just shut down the declining properties instead of spinning them off. That other company is heading off a cliff, as is Versant.

It's not that hard, really. Business 101.

There is money to be made from them still. But if you keep them in company A, their decline drags down the stock price. So you spin.

The biggest downside here is to the new company, which looks like it's getting left holding too much of the debt bag.
 
It's not that hard, really. Business 101.

There is money to be made from them still. But if you keep them in company A, their decline drags down the stock price. So you spin.

The biggest downside here is to the new company, which looks like it's getting left holding too much of the debt bag.
Isn't that new company doomed though? It doesn't look like the Global Networks has a future at all.
 
But they're billions in debt...there's got to be stuff that hadn't been paid off for years.

At some point, they either sell some assets or bankrupt that part of the company. Or they just keep on keepin' on.

A lot of people sign 30 year mortgages to buy a house.

The US government is over $36 trillion in debt, and nobody seems worried.
 
I see. So once companies start losing money, they're in trouble.

Exactly. Companies don't look at debt and say "We don't have that kind of money liquid right now". They look at the debt service---how much is it a month to pay the lenders as agreed---and say "does our cash flow cover it?"

We're talking about companies---even in the spinoff group---that are still raking in significant cash flow.

The downside is that however much money goes to debt service every month is money that otherwise (if you didn't have the debt) could be re-invested in equipment, facilities, programming or staff---or just chalked up as massive profit.
 
Exactly. Companies don't look at debt and say "We don't have that kind of money liquid right now". They look at the debt service---how much is it a month to pay the lenders as agreed---and say "does our cash flow cover it?"

We're talking about companies---even in the spinoff group---that are still raking in significant cash flow.

The downside is that however much money goes to debt service every month is money that otherwise (if you didn't have the debt) could be re-invested in equipment, facilities, programming or staff---or just chalked up as massive profit.
Or just don’t buy the stuff you can’t afford. Most of this debt goes back to AT&T.
 
My biggest takeaway is the TNT Sports and AEW.
Tony Khan banked on getting renewed with WBD; I assume the contract will go to Global Networks. Some of the content are on HBO MAX as well. My guess they will have to remove them as soon as the split happens. But I can't imagine if this new company keeps swimming in debt, they will satisfy for a mid-product from a pro wrestling standpoint hovering at half a million viewers a week. They may just cancel it outright. Then you have the contracts with TNT Sports. They NEED A STREAMING PLATFORM to justify the worth of the content (MLB, NHL, French Open); It wouldn't shock me if ESPN or FOX Sports tries to buy the rights OUTRIGHT for FOX ONE or ESPN altogether. Everything else outside of the Discovery end of things from a cable channel standpoint is useless now. If CNN is broadcasting a play live instead of covering news regardless of ratings, that is a huge concern for me as it shows they're doing everything they can for the almighty nielsen ratings no.
 


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