SPX3,647.29-7.75 -0.21%
DIA291.30-1.42 -0.49%
IXIC10,829.50+26.58 0.25%

Warner Bros Discovery Relinquishes Remaining Stake In Joyn Streaming Service

Benzinga · 09/13/2022 14:44
  • ProSiebenSat.1 Media SE (OTC:PBSFY) slashed its 2022 core earnings outlook after acquiring the remaining 50% of shares in streaming service Joyn from Warner Bros. Discovery, Inc (NASDAQ:WBD).
  • ProSiebenSat will acquire the remaining 50% stake in Joyn, launched in 2019, for the symbolic price of €1, ProSiebenSat CEO Rainer Beaujean told Reuters.
  • ProSiebenSat 1 Media expects the complete consolidation of Joyn to make a €25 million dent in 2022 adjusted earnings before interest, tax, depreciation, and amortization (EBITDA).
  • Therefore, it cut down its outlook for 2022 adjusted EBITDA to €780 million, with a variance of plus/minus €25 million, versus a previously forecast €805 million plus/minus €25 million.
  • The group, however, stuck to its previous 2022 forecast for adjusted net income of around €4.375 billion ($4.45 billion), with a variance of plus/minus €75 million, primarily in line with the previous year.
  • "This gives us strategic security," he said.
  • Like rivals Netflix, Inc (NASDAQ: NFLX) and Walt Disney Co (NYSE: DIS), Warner focused on global subscription models, while Joyn will remain ad-financed and limited to German-speaking countries, Beaujean added.
  • After enjoying massive popularity during the pandemic, the streaming industry is battled subscriber loss amid recovery coupled with surging inflation and lower consumer spending.
  • Warner wants to prioritize the upcoming integration of Discovery+ content into the HBO Max platform. 
  • Price Action: WBD shares traded lower by 2.22% at $13.02 on the last check Tuesday.