Why Warner Bros. Discovery Stock Plummeted Today
No shareholder likes to learn that a company they've invested in is about to incur more costs than previously expected. That was the dynamic behind Warner Bros. Discovery's (NASDAQ: WBD) nearly 9% stock price decline on Thursday following the release of its latest update on its restructuring plans.
In a regulatory filing, the entertainment company divulged that it expects to incur pre-tax restructuring charges of $4.1 billion to $5.3 billion.
Warner Bros. Discovery was formed when telecom giant AT&T spun off its Warner Media unit, which then merged with Discovery in April. Restructuring charges were expected as the newly united businesses transformed into a single operation. They weren't expected to be this high, however. In late October, management said they would land in the $3.2 billion to $4.3 billion range.
Source Fool.com
