Paramount Global on Thursday reported it took a $6 billion write down on its cable television networks business, in yet another sign that Hollywood is reckoning with the ongoing deterioration of the traditional television business. The disclosure, part of Paramount's second-quarter earnings filing, comes as the company prepares to be taken over by David Ellison's Skydance Media in the first half of next year.
During the second quarter, Paramount's streaming business, which includes the free ad-supported service Pluto TV, reported a narrow profit, with operating income of $26 million. On Wednesday, rival Warner Bros. Discovery made a similarly dire admission, telling investors that its stable of cable assets, including HGTV, Cartoon Network, CNN and Food Network, are now worth $9 billion less than they were two years ago.