Damn, Warner Bros. Discovery lost a lot of money last year
It was a rough year for Warner Bros. Discovery, as the media giant reported a net loss of $2.2 billion in 2020. This marks the first time in the company’s history that it has posted a net loss in a single year.
The loss is largely attributed to the impact of the COVID-19 pandemic, which has resulted in a dramatic decrease in advertising revenue, as well as a decrease in subscription revenue from its various streaming services. The company also had to write down $2.3 billion in assets due to the pandemic, which further contributed to the loss.
The news comes as a surprise to many, given that Warner Bros. Discovery had been one of the most successful media companies in recent years. In 2019, the company reported a net income of $1.9 billion and had seen steady growth in its streaming services.
It is unclear how the company will respond to the loss, but it is likely that it will look to cut costs and focus on its streaming services in order to try and return to profitability. It is also possible that the company may look to acquire other media companies in order to expand its reach and diversify its revenue streams.
No matter what the company decides to do, it is clear that the pandemic has had a huge impact on Warner Bros. Discovery’s bottom line. It remains to be seen how the company will respond to the loss and if it can return to profitability in 2021.