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John Oliver has torn into Warner Bros Discovery on his HBO show Last Week Tonight for ‘burning down the network’ after numerous projects were culled off.
The comedian sarcastically said the new ‘daddy business’ seemed like it was doing a ‘really great job’ after the media conglomerate axed $825million worth of content.
He joked the parent company was destroying the business for the ‘insurance money’ but added ‘I’m sure that’ll all pass’ and mocked the $90million flop Batgirl.
The fiery comments startled some viewers because HBO is part of the Warner Bros Discovery empire.
It comes after Warner Bros Discovery revealed in an SEC filing on Friday it had wiped off $825million worth of content since its mega merger in May last year.
The huge sum is made up of $496million in impairment on content and $329million in content development write-offs.
The figure was reached after the firm took an ax to shows on TBS and TNT as well as the shelving of $300million disaster CNN+.
The comedian sarcastically said the new ‘daddy business’ seemed like it was doing a ‘really great job’ after the media conglomerate axed $825million worth of content
Oliver said on his show: ‘Sharing vaccines would have served two purposes, basic human decency but also abject selfishness in that stopping outbreaks outbreaks over there may well have prevented an outbreak over here.
‘And yet for some reason we let the outbreak sit unused on a shelf in our reserves like an expired Chobani or a $90million movie on HBO Max.’
He added: ‘By the way, hi there new business daddy, seems like you’re doing a really great job.
‘I do get the vague sense you’re burning down my network for the insurance money, but I’m sure that’ll all pass.’
On Friday Warner Bros Discovery revealed it had take an $825million write-down on content following the WarnerMedia merger.
In an SEC filing the firm wrote: ‘Content impairments and development write-offs resulted from a global strategic review of content following the Merger.’
The eye-watering figure included cuts across film and TV studios, TV networkers and streaming services.
Shelved films such as Batgirl and Scoob: Holiday Haunt were not understood to be a part of it, with them expected to be accounted for next quarter.
But it will incorporate losses from DC project Wonder Twins that was shut down in May before Q2 ended.
TV stations TBS and TNT also saw programs culled off, including Chad, Full Frontal With Samantha Bee, The Last OG and Snowpiercer.
Meanwhile the sum is expected to be made up of the disaster at CNN+ but is separate from the staggering $208million paid out in job cuts.
Warner Bros Discovery streaming chief JB Perrette said on Thursday that children’s shows, streaming content and shows on TBS and TNT were mostly responsible for the sum.
He said: ‘We will continue to have healthy content investment, but with these two content portfolios coming together, we see smart opportunities to do this at a much more measured pace than in the previous plans.
‘These are difficult decisions, but we are committed to being disciplined about a framework that guides our content investment for maximum return.’
CEO David Zaslav added: ‘Owning the content that really resonates with people is much more important than just having lots of content.’
The New York-based company lost $3.42billion, or $1.50 per share, in the second quarter, announced Friday.
Its adjusted loss was 11 cents per share. Analysts surveyed by Zacks Investment Research expected breakeven results.
Revenue for the three months ended June 30 totaled $9.83billion, below the $11.53billion that Wall Street was calling for. Shares tumbled 17 percent on Friday.
The Batgirl film was canned by Warner Bros. after spending about $90million on the movie because studio executives want to move away from made-for-streaming projects
Elsewhere in the ailing business, Warner Bros Discovery said it will merge HBO Max and Discovery+ into one streaming platform next year to help save $3billion.
Zaslav said the combined services will be launched next summer, with a release planned for Latin America, Europe and other markets through 2024.
The new Subscription Video on Demand (SVOD) service will include the full libraries of both streaming platforms and have ad free, ad-lite and a free-with-ads versions.
He continued: ‘With respect to streaming, our main priority right now is launching an integrated SVOD service.
‘Once our SVOD service is firmly established in the market, we see real potential and are exploring the opportunity for a fast or free ad-supported streaming offering that would give consumers who do not want to pay a subscription fee access to great library content, while at the same time serving as an entry point to our premium service.’
But as he touted the new services, which does not have a name yet, Zaslav remained quiet about the company’s plan to find $3 billion savings that will result in layoffs.
The melding of the two services, following the completion of Discovery’s $43billion acquisition of AT&T’s WarnerMedia in May 2021, had long been anticipated.
It comes as other cost-cutting measures appeared to be coming into force including a shock announcement of the scrapping of the $90million DC Batgirl girl film.
Other signs of ‘distress’ have also occurred with the shuttering of productions and removing content in search of tax write-offs.
HBO Max is also said to have discreetly removed six original films from the streamer.
A source told The Wrap: ‘Everyone in Warner Bros Discovery is nervous at the moment, and starting to look at alternative job options in case they get the axe.
‘Sounds like they’re not doing HBO Max scripted shows anymore with HBO taking over, so less scripted shows overall.’
They added: ‘All I know is they’re folding HBO Max into HBO, and there will be redundancies.’
The redundancies are said to be the prime source for the coming layoffs, something Zaslav and executives have practice with before when they shut down CNN+.
Warner Bros. Discovery CEO David Zaslav, pictured, confirmed the merge of the HBO Max and Discovery+ services into one streaming platform next summer
The move is a major embarrassment for the network after it was unveiled to much fanfare three weeks ago, including a glitzy launch party in New York. Pictured: Ken Jautz, Andrew Morse, Kasie Hunt, Chris Wallace, Rex Chapman, Anderson Cooper, Amy Entelis, and Michael Bass at the launch event in New York last month
But last week the producer of DC’s The Flash tried to calm fan’s fears it was next to be axed by Warner Bros after the studio killed off Batgirl.
Starring Ezra Miller, The Flash is scheduled to be released in 2023 – but many have speculated it will also be shelved because of Warner Bros’ seeming lack of clarity.
According to The Flash Film News on Twitter, the movie’s producer Barbara Muschietti said that ‘All is good in Flash land’ despite it only being ‘expected’ to hit theaters next June.
In a conversation with the fan page, which collates information about the upcoming film, Muschietti said that it was ‘absolute b******t’ to suggest that The Flash does not yet have a firm release date.
They posted: ‘Amid the recent DCEU shakeup, THE FLASH producer, Barbara Muschietti, wants to reassure fans that ‘all is good in Flash land.”
Warner Bros has not commented on whether The Flash is still expected to hit screens next year when approached by DailyMail.com.
Warner Bros has allegedly been put in a difficult position because the film’s star Miller has been arrested multiple times – and the actor’s behavior has become erratic, according to Rolling Stone.
Miller, who is non binary and uses the pronouns they and them, was arrested twice earlier this year after they allegedly assaulted and spit at someone in Hawaii.
The film is said to be on track for its release next year, but Warner Bros has paused working on any future projects involving Miller.
According to The Flash Film News on Twitter, the movie’s producer said in an Instagram message that ‘All is good in Flash land.’ It comes after the star of The Flash Ezra Miller was arrested multiple times
Barbara Muschietti tried to ease fans’ minds – but many still believe that there is a chance that Warner Bros could axe the film before its release next year
The Flash actor Ezra Miller is seen in a police booking photo after his arrest for disorderly conduct and harassment in March 2022
The Twitter page also said that the producer called the allegation that there is no set date ‘absolute b******t’
Under chief executive Jason Kilar and partly as a Covid response, the studio brought in day-and-date releases in 2021, opening films simultaneously in theaters and on HBO Max. Films, such as Batgirl, were to be produced solely for HBO Max.
Warner Bros had committed to making movies that could go straight to HBO Max, as part of an effort to boost subscribers in the increasingly crowded streaming sector.
The decision, which was driven partially by a need to bypass Covid-hit theaters in 2021, was not popular among creatives and appears to have been rolled back after the tie-up with Discovery.
This year, Warner Bros has returned to exclusive theatrical windows for at least 45 days before sending movies to HBO Max.
Zaslav said the firm would shift its focus on attracting top-tier storytellers for TV and film projects and commit to theatrical releases, where more money can be made.
He said: ‘That’s why most people got in this business — to be on the big screen when the lights went out. That is the magic, and the economic model is much stronger.’
The change comes as streaming services saw lackluster performances in Wall Street, with Warner Bros Discovery’s stock down more than 31 percent from $25.50 in April.
Within that same time, Netflix saw its stock plummet by about 36 percent, with Paramount’s stock also seeing a drop of about 30 percent.