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Warner Bros Discovery has made a heart-breaking announcement that sent Twitter into a frenzy.
The American media conglomerate recently revealed that it is exploring a decision to sell off its music library, which has been valued at more than $1 billion. This latest move from chief executive David Zaslav is an attempt to manage the finances of the media house and clear the mounting debt that Warner Bros Discovery finds itself in.
Needless to say, Twitter is furious over this new decision, and people are not at all condoning the actions of Warner Bros.
The announcement and subsequent Twitter reactions
Ever since the merging of WarnerMedia with Discovery last year, chief executive David Zaslav’s team has been making some active moves to cut down the entertainment house's $50 billion debt.
However, its latest decision to sell off the music records of the company has placed it under heavy fire from netizens.
Chief financial officer Gunnar Wiedenfels defended the team's moves, saying:
“We shaved off a lot of the excess last year, and I think that’s something that everyone else in the industry is going to go through. We’re coming from an irrational time of overspending with very limited focus on return on investment. We are just consistently and continuously looking at how we’re running the business . . . What makes sense? What doesn’t make sense?”
Last year was a harsh time for the media house, given that their stock lost more than half its value. However, things have been looking up for the company this new year with shares in Warner Bros Discovery having increased by more than a third, prompting investors to believe that when it comes to losses and restructuring costs, the worst has passed. This sentiment has been echoed by Bank of America analyst Jessica Ehrlich, who said:
“At this point, the majority of heavy lifting (related to restructuring charges etc) has been completed.”
Such an announcement pacified fans momentarily, who thought the worst is over for the company. However, the news that Warner Bros. Discovery has decided to sell its music library - which specialists have estimated to be more than $1 billion in value - has now once again sparked fury among netizens, with many wondering why the CEO of the company hasn't been fired yet.
About Warner Bros Discovery
The Warner Bros Discovery media house created a music division as early as in the 1950s. But in 2004, the parent company Time Warner sold the division, retaining its copyright to a selection of songs like the soundtrack of the Batman films.
But it looks like the time is over for the remaining few songs as well, given that Warner is now looking for potential buyers and trying to capitalize on the hot market for music copyrights. The deal would allow access to and use of certain soundtracks in the Warner Bros music catalog. The decision has just been made, and the process for sale is now in its early stages.
This move follows hot on the heels of Zaslav’s team axing prominent projects such as CNN Plus streaming service, JJ Abrams’ HBO series Demimonde, and the Batgirl movie, which has called for widespread criticism of Warner Bros Discovery.
