The company announced the write-down in the second quarter. The impairment reflects declining viewership of Paramount’s cable television channels such as Nickelodeon, MTV and Comedy Central, resulting in lower advertising revenue.
The announcement came a day after Warner Bros Discovery announced a $9 billion writedown of its TV assets.
Paramount’s job cuts are part of an effort to cut $500 million in costs ahead of its merger with Skydance Media. An estimated 2,000 people will be affected.
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In its second-quarter results, Paramount said revenue fell 11 percent to $6.8 billion. The television division, which includes the group’s cable networks and broadcaster CBS, reported quarterly revenue of nearly $4.3 billion, a 17 percent decline from the previous year.
In more positive news, the company’s streaming business, which includes subscription service Paramount+ and free AVOD platform PlutoTV, posted its first quarterly profit. The direct-to-consumer division reported an operating profit of $26 million in the second quarter, compared to a loss of $424 million a year earlier.
“We are on track to achieve domestic profitability with Paramount+ in 2025,” Paramount co-CEOs George Cheeks, Chris McCarthy and Brian Robbins said in a joint statement.
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