Paramount takes $5.98B write-down on cable networks

Paramount Global took a $5.98 billon write-down on its linear cable TV business amid shrinking revenues and a pending acquisition by Skydance Media.

After taking the hit, Paramount will post a second-quarter 2024 net loss of $5.4 billion. In the same quarter in 2023, it only lost $299 million.

The write-down is another sign that media companies are still struggling with shifting to streaming as more and more consumers cancel traditional cable TV packages in favor streamers and social video.

Overall revenue at Paramount was also down 11% to $6.8 billion.

Positive news included direct-to-consumer revenue growing 13% to $1.9 billion. Advertising revenue for that category was up 16% to $513 million and Paramount+ grew its revenue by 46% to $1.36 billion. 

Paramount+ did lose 2.8 million subscribers as a result of shutting down a bundle partnership in the South Korea market. It ended the quarter with 68 million global subscribers.

Paramount is in the middle of being acquired by Skydance Media. That deal is slated to help the company deal with its heavy debt load and cut costs. 

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