Latest news with #WBD
Yahoo
2 hours ago
- Business
- Yahoo
Warner Bros Discovery (WBD) Shareholders Reject CEO Pay Amid Stock Slump
A majority of Warner Bros Discovery (WBD, Financials) shareholders voted against the 2024 compensation package for Chief Executive David Zaslav, according to a regulatory filing issued Tuesday. The nonbinding vote reflects growing shareholder frustration as the company's stock continues to underperform. Warning! GuruFocus has detected 4 Warning Signs with WBD. Shareholders rejected Zaslav's $52 million pay deal, which exceeds the 2024 compensation reported by Disney CEO Bob Iger ($41 million) and Comcast CEO Brian Roberts ($34 million). While the vote does not mandate changes, the board said it takes the results of the annual advisory vote on executive compensation seriously. Revenue and cash flow concerns have persisted across WBD's television business, prompting S&P Global to cut the company's credit rating to BB-plus last month. Shares of WBD have fallen nearly 60% since the merger that formed the company in 2022. At the time of the merger, WBD reported $55 billion in debt, which had declined to $38 billion as of May, according to the company. Some analysts expect Warner Bros Discovery may consider spinning off its studio and streaming businesses as it works to regain investor confidence. See insider trades for WBD. Explore Peter Lynch chart. This article first appeared on GuruFocus.
Yahoo
19 hours ago
- Business
- Yahoo
Warner Bros. Discovery's Credit Rating Cut to Junk Status by S&P, Citing Weak Linear TV Outlook
With the expected continued slide of Warner Bros. Discovery's linear TV business, S&P Global Ratings has cut the media company's credit rating to junk status. On Tuesday, S&P lowered its forecast for 2025 and '26 for Warner Bros. Discovery, primarily due to the 'continued revenue and cash flow declines at its linear TV operations,' which will offset growth at the company's streaming and studio segments. The ratings agency said it now expect WBD's adjusted EBITDA to remain about $9 billion for the next three years. As a result, S&P expects the company's debt-to-equity ratio at the end of 2025 to be 4.3x, 'significantly higher than our 3.5x leverage threshold' for an investment-grade rating, and for the company's leverage to remain above 3.5x until 2027. More from Variety Branding Experts on Decision to Flip Max Back to HBO Max: 'A Corporate Walk of Shame' Inside the Warner Bros. Discovery Upfront: Big Laughs for 'HBO Max' Name Change; No NBA, But Shaq Still Stops By to Promote 'Superman' Movie 'The Pitt' Will Make Its Linear Premiere on TNT This Fall As such, S&P lowered its issuer credit rating on Warner Bros. Discovery to 'BB+,' one step below its lowest investment-grade rating. According to S&P, 'BB+' is the 'highest speculative-grade by market participants.' The lower rating for WBD could make it more expensive for the company to raise or refinance debt. The two other big ratings agencies, Moody's and Fitch Ratings, maintain a rating on Warner Bros. Discovery one level up from junk status. In its ratings-downgrade advisory, S&P said, 'We do not expect WBD to materially accelerate deleveraging through asset sales, but to instead prioritize investment in its growth businesses, which will extend the deleveraging path.' Warner Bros. Discovery declined to comment. Warner Bros. Discovery has reorganized the company into two divisions: one comprising its streaming business (plus HBO) and production studios, and the other composed of the rest of its cable TV portfolio. The reorg, which was completed in Q1, will 'create opportunities as we evaluate all avenues to deliver significant shareholder value,' CEO David Zaslav said in originally announcing the separation last December. S&P said that a potential separation of WBD 'is not factored into our current rating, but any separation of the company into a growth company (Streaming & Studios) and a Global Linear Networks company would be a credit negative.' According to its current forecast, S&P Global Ratings expects earnings before interest, taxes, depreciation, and amortization at Warner Bros. Discovery's global networks to drop 20% in 2025, to $6.5 billion. That's because of accelerating revenue declines and 'elevated content costs from newly acquired sports rights content coupled with its last year of NBA rights in 2025.' The firm expect WBD's linear TV advertising to decline 11% this year 'due to continued pressure on audience ratings and less sports than peers.' On a positive note, Warner Bros. Discovery has seen healthy EBITDA growth at its direct-to-consumer streaming segment, with EBITDA increasing from $103 million in 2023 to $677 million in 2024. S&P said it expects further growth in EBITDA to more than $1.3 billion in 2025. However, the profitability of the streaming business is expected to 'moderate' in 2026 as Warner Bros. Discovery 'seeks to balance EBITDA growth with reinvestment in content, marketing and international growth as it launches in key markets like the U.K.,' S&P of Variety New Movies Out Now in Theaters: What to See This Week Emmy Predictions: Talk/Scripted Variety Series - The Variety Categories Are Still a Mess; Netflix, Dropout, and 'Hot Ones' Stir Up Buzz Oscars Predictions 2026: 'Sinners' Becomes Early Contender Ahead of Cannes Film Festival
Yahoo
19 hours ago
- Business
- Yahoo
Warner Bros. Discovery Shareholders Vote Against CEO David Zaslav's $52 Million Pay Package in a Symbolic Rebuke
The majority of Warner Bros. Discovery shareholders who voted at the company's 2025 annual meeting evidently believe CEO David Zaslav and other top execs are earning too much. At WBD's annual stockholders meeting held June 2, investors voted down a non-binding 'advisory' measure to approve the 2024 compensation packages of Zaslav and the company's other named executive officers, according to an SEC filing. Such a measure is referred to as a 'say-on-pay' vote, designed to give shareholders a voice in expressing their approval — or disapproval — of exec compensation. More from Variety David Leavy, CNN's Chief Operating Officer, Will Return to Warner Bros. Discovery Warner Bros. Discovery, U-Next Strike Global Distribution Deal for Japanese Dramas (EXCLUSIVE) Warner Bros. Discovery's Credit Rating Cut to Junk Status by S&P, Citing Weak Linear TV Outlook Per the WBD-reported tallies, there were 724.5 million shares voted 'for' the executive compensation package advisory and 1.06 billion shares voted 'against' the measure — meaning almost 60% of the votes cast were against the pay packages. In addition, there were 5.69 million shares that did not vote (abstentions) and 307.38 million broker non-votes. In a statement to Variety, Warner Bros. Discovery's board said: 'The Warner Bros. Discovery Board of Directors appreciates the views of all its shareholders and takes the results of the annual advisory vote on executive compensation seriously. The Compensation Committee of the Board looks forward to continuing its regular practice of engaging in constructive dialogue with our shareholders.' For 2024, Zaslav's pay package rose 4% to $51.9 million, according to the company's latest proxy statement. His base salary was $3 million and he received stock awards worth $23.1 million, bonus compensation of $23.9 million and 'all other' compensation of $1.9 million. Zaslav had a 2023 pay package worth $49.7 million, up 26.5% from the year prior. His compensation totaled $39.3 million in 2022, after he received an astonishing $246.6 million (which included $203 million in stock option grants) in 2021. The 2024 pay packages for Warner Bros. Discovery's other top executives were: CFO Gunnar Wiedenfels, $17 million (flat with his 2023 compensation); chief revenue and strategy officer Bruce Campbell, $19.8 million (up 8%); global streaming and games CEO and president J.B. Perrette, $19.7 million (down 2%); and international president Gerhard Zeiler, $14.8 million (up more than 11%). SEE ALSO: Best of Variety What's Coming to Netflix in June 2025 New Movies Out Now in Theaters: What to See This Week 'Harry Potter' TV Show Cast Guide: Who's Who in Hogwarts? Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
20 hours ago
- Entertainment
- Yahoo
Russell Simmons Files $20 Million Defamation Lawsuit Over ‘On the Record' HBO Max Doc
Warner Bros. Discovery has been sued by Russell Simmons, who alleges that the filmmakers behind On the Record defamed him by turning a blind eye to evidence disputing accusations that he sexually assaulted women in his orbit. In a lawsuit filed in New York state court on Tuesday, Simmons brings claims for defamation, invasion of privacy and false advertising, among others. He seeks $20 million and a court order that would force WBD to remove the title from its platforms. More from The Hollywood Reporter #MeToo's Tarana Burke on Diddy Allegations: "The Zeitgeist Has Changed and People Are Ready to Believe the Survivors" Russell Simmons Sued For Defamation By Former Def Jam Recordings Executive Russell Simmons Sued By Former Def Jam Recordings Executive Over Alleged Rape On the Record tells the stories of Simmons' accusers — including former Def Jam executive Drew Dixon, domestic violence awareness activist Sil Lai Abrams and screenwriter Jenny Lumet — as they decide to go public with allegations of sexual assault. It was produced by Oscar-nominated directors Kirby Dick and Amy Ziering via their production banner Jane Doe Films, all of whom are named in the complaint, with Dan Cogan for Impact Partners. A distribution deal with Apple TV+ was severed when Oprah Winfrey publicly announced that she was pulling out as executive producer, citing creative differences with the filmmakers. It was later picked up by HBO Max as its first-ever festival acquisition. In Tuesday's complaint, Simmons alleges that the filmmakers intentionally ignored information, including interviews from over 20 witnesses across media and politics, that challenged their narrative that the music mogul assaulted and harassed various women. The evidence was presented to John Stankey, then-CEO of Warner Media, and Casey Bloys, chairman and CEO of HBO and Max Content, both of whom disregarded the materials, the lawsuit says. WBD and the documentary's producers additionally ignored ignored nine polygraph tests, as well as other information that 'would have been discovered with due diligence and adherence to accepted journalistic standards,' writes Imran Ansari, a lawyer from Simmons, in the complaint. Also at issue: Apple withdrawing from distributing the documentary and certain media outlets, including CNN, the New York Post and MSNBC, declining to cover the allegedly defamatory content. The majority of the title follows Dixon, who last year filed a defamation lawsuit against Simmons for allegedly trying to undermine her sexual assault accusations against him. The former Def Jam Recording executive has alleged that she was raped by the music mogul in 1995. The complaint was filed on the heels of another suit against Simmons for sexual assault and battery from an ex-executive at the label he cofounded, who sued as a Jane Doe. At the On the Record's Sundance premiere, the audience gave the title multiple standing ovations. With its festival reviews, On the Record currently sits at a 100 percent on Rotten Tomatoes, while The Hollywood Reporter's Beandrea July called the film 'a stunning feat of complexity that's both contained and expansive.' Ansari, Simmons' lawyers, is a partner at Aidala, Bertuna & Kamins. Arthur Aidala, another partner at the New York law firm, is lead counsel for Harvey Weinstein in his New York sexual assault trial. Best of The Hollywood Reporter How the Warner Brothers Got Their Film Business Started Meet the World Builders: Hollywood's Top Physical Production Executives of 2023 Men in Blazers, Hollywood's Favorite Soccer Podcast, Aims for a Global Empire
New York Post
2 days ago
- Business
- New York Post
Warner Bros. Discovery shareholders reject CEO David Zaslav's $52M pay package
A majority of Warner Bros Discovery shareholders voted against the 2024 pay packages of CEO David Zaslav and other top executives at the media conglomerate's annual stockholder meeting, a Tuesday regulatory filing showed. The board of directors had recommended shareholders to vote in favor of the 2024 executive compensation; however, more than 59% of them rejected the proposal on a non-binding basis. For 2024, Zaslav's total compensation rose 4% from the prior year to $51.9 million. For 2024, CEO David Zaslav's total compensation rose 4% from the prior year to $51.9 million. More than 59% of shareholders rejected the proposal on a non-binding basis. REUTERS Warner Bros Discovery has been struggling to stem declines in its cable TV business amid widespread cord-cutting, focusing instead on its faster-growing streaming and studios divisions. Last month, it missed first-quarter revenue estimates and posted a larger-than-expected loss. The company is also moving towards a potential breakup, CNBC reported last month. WBD had laid the groundwork for a possible sale or spinoff of its declining cable TV assets last December by announcing a separation from its streaming and studio operations. Powered by a strong content slate, including the third season of HBO's 'The White Lotus' and the medical drama series 'The Pitt,' WBD added 5.3 million streaming subscribers in the January-March quarter, beating market expectations, but still far off from streaming industry leader Netflix. Warner Bros. Discovery is also moving towards a potential breakup. REUTERS The company last month also walked back on the branding of its streaming service, Max, bringing back the HBO name it dropped two years ago.
