Paramount writes down value of cable networks by nearly $6 billion

During its Thursday earnings call, Paramount Global revealed a stunning write-down of nearly $6 billion to the value of its cable networks.

Paramount’s write-down comes a day after Warner Bros. Discovery wrote down the value of its cable networks by over $9 billion.

According to the Wall Street Journal, the write-down is linked to Paramount’s sale to Skydance, which was announced last month and is expected to conclude in the first quarter of 2025.

The decision by Paramount, home of channels including Comedy Central, MTV and Nickelodeon, to reassess the value of its cable-TV business is tied to its recently announced deal to merge with Skydance Media, according to a person familiar with the matter.

“The challenges of the linear ecosystem are becoming even more apparent especially given the pressure on linear advertising and the competition for ad budgets with connected TV and streaming players and the increasing pressure with cord-cutting,” said Robert Fishman, an analyst with MoffettNathanson.

Paramount owns several cable networks, including BET, Comedy Central, MTV, Nickelodeon, VH1, and the CBS Sports Network. A sale of the BET Media Group, which includes BET and VH1, has been explored in the past and could again pop up once the Skydance deal is finalized.

On Thursday, Paramount also announced it would lay off roughly 15% of its U.S. staff as part of a cost-savings plan. The company is also considering “strategic partnerships” for its Paramount+ streaming service, which lost 2.8 million subscribers in the quarter due to a “planned exit from a hard bundle agreement in South Korea.” Paramount’s direct-to-consumer business turned a profit for the first time, booking $26 million in revenue.

[Wall Street Journal]