No, this isn’t “Midsommar” or “Sinister” — it’s just another nightmare quarter for entertainment titan Warner Bros. DiscoveryWBD

. And this time, the HBO parent company had analysts and investors running scared. Amid an increase in cable cutting and falling ratings, WBD took a $9.1B impairment on its cable business — representing the lion’s share of the company’s $9.98B quarterly loss.

• The damage comes after a review of its cable portfolio — including CNN, Food Network, and HGTV, among others — revealed diminishing value.
• Making matters worse, the company’s failure to secure renewals for its TNT channel in the NBA’s new media rights deal has created even more disruption in its portfolio.

Shareholder value destroyer: CEO David Zaslav acknowledged that the media landscape has changed significantly since the WarnerMedia and Discovery merger in 2022, valued at $43B. Today, the whole company is worth less than half of that — with its stock down 90% from its peak to an all-time low. As a result, the company has told investors that it might consider strategic alternatives. CFO Gunnar Wiedenfels stated on the quarterly earnings call, “You shouldn’t be surprised to see us engaging in partnership discussions.”