Warner / Discovery only has enough cash to release 2 films this year.
- Thread starter Bryank75
- Start date
It's some off the cuff remark from a writer.. the idea they literally don't have enough cash is pretty unsubstantiated.
edit: Appears to come from some producer telling him WB "has no money"
Ehh.. I dunno... could be true I guess.. i feel like it's more a "don't want to spend the money" thing.. they are writing off tons of losses which is going to generate a bunch of free cash flow this year, which is their goal...
edit: Appears to come from some producer telling him WB "has no money"
Ehh.. I dunno... could be true I guess.. i feel like it's more a "don't want to spend the money" thing.. they are writing off tons of losses which is going to generate a bunch of free cash flow this year, which is their goal...
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In general people misunderstand the WBD situation.
What they did was claim a huge loss, by writing down a bunch of things from the past. With how expenses are amortized in the content creation industry, financials can be confusing as you can hold off counting expenses against profit until a later date, if the thing you created has long-term revenue potential.. in fact you are SUPPOSED to do that.
What appears to have happened with Discovery taking over WB is they decided to really stick a fork in a lot of old shit to say "We don't believe this content actually has future profit potential and are going to eat all of the expenses at once in our financials." They sort of "reset the accounting" on a lot of things and now can "re-build" from a position of having positive cash flow.
So they have more money than they did last year, not less LOL
My guess is they may just be taking the hit on this fiscal year looking good at all on paper, so that next year they can have a big rebound. IIRC their fiscal ends right around when the calendar year ends, so these delays push the movies into the next fiscal year.
Then boom goes stock price because every quarter next year looks gangbusters and a big turnaround post-merger. I think that's the plan at least..
(also Avatar is coming out lol)
(i'm an official armchair finance guy, so trust me on all this)
What they did was claim a huge loss, by writing down a bunch of things from the past. With how expenses are amortized in the content creation industry, financials can be confusing as you can hold off counting expenses against profit until a later date, if the thing you created has long-term revenue potential.. in fact you are SUPPOSED to do that.
What appears to have happened with Discovery taking over WB is they decided to really stick a fork in a lot of old shit to say "We don't believe this content actually has future profit potential and are going to eat all of the expenses at once in our financials." They sort of "reset the accounting" on a lot of things and now can "re-build" from a position of having positive cash flow.
So they have more money than they did last year, not less LOL
My guess is they may just be taking the hit on this fiscal year looking good at all on paper, so that next year they can have a big rebound. IIRC their fiscal ends right around when the calendar year ends, so these delays push the movies into the next fiscal year.
Then boom goes stock price because every quarter next year looks gangbusters and a big turnaround post-merger. I think that's the plan at least..
(also Avatar is coming out lol)
(i'm an official armchair finance guy, so trust me on all this)
Forgive me if wrong, but WBD sound quite controlling of MK media released right now between the movies/mk12... I suppose whatever happens, NRS wont be going anywhere outside of WBD unless WBD ceases to exist itself, right?
