discussion Warner Bro. Disc CEO David Zaslav(MAGA) SUED; lied about HBO Max #s by 10 MILLION

[XAMJ]

Quote

Warner Bros. cooked its HBO Max subscriber numbers by as many as 10 million and misled shareholders in other ways that violate the Securities Act to complete its merger with Discovery, according to a class-action lawsuit that claims it could potentially represent “hundreds of thousands” of plaintiffs.

The lawsuit was filed last Friday in New York on behalf of the Collinsville Police Pension Board, an Illinois-based shareholder of Warner Bros. Discovery stock, which it accepted in trade for its pre-merger Class C common Discovery shares. At the time of the merger, Discovery shares were valued at $24.78; as of Tuesday, WBD shares were trading just above $11.

The lawsuit names Warner Bros. Discovery, CEO David Zaslav, and CFO Gunnar Wiedenfels as defendants. WBD did not immediately respond to a request for comment.

The lawsuit says that, among several other “adverse information” being kept hidden, the merging companies overstated the subscriber base for HBO Max:

“WarnerMedia was improvidently concentrating its investments in streaming and ignoring its other business lines … [and] overstated the number of subscribers to HBO Max by as many as 10 million subscribers, by including as subscribers AT&T customers who had received bundled access to HBO Max, but had not signed onto the service.”

More than 700 million shares of WBD were issued to Discovery common and preferred shareholders pursuant to the merger, the lawsuit states, meaning “hundreds of thousands” of people could potentially join the federal securities class-action filed in a New York federal district court.

Discovery and the WarnerMedia division of AT&T announced their merger plans in May of 2021, and closed this year on April 8.

The lawsuit says “the Registration Statement and Prospectus and certain of the Defendants’ other public statements, contained untrue statements of material fact or omitted to state material facts required to be stated therein or necessary to make the statements therein not misleading

It also said “AT&T was overinvesting in WarnerMedia entertainment content for streaming, without sufficient concern for return on investments … WarnerMedia had a business model to
grow the number of subscribers to its streaming service without regard to cost or profitability.”

The plaintiff, a pension fund to benefit current and former police officers in Collinsville, Illinois, suggests that anyone who purchased WBD on the open market post-merger is qualified to join the lawsuit.

It’s seeking a jury trial for monetary damages, alleging three separate Securities and Exchange Commission violations

 

Warner Bros. Cooked HBO Max Subscriber Numbers, Misled Shareholders in Discovery Merger, Lawsuit Claims (thewrap.com)

CROOK, Destroying WBs legacy, crook!

 

@Reverse Warholian @GraceRandolph

[magazine]

[RussianRoulette]

Flop

[Dula Peep]

oh man

[Rev8]

When will they remove him as CEO

[Revolution]

another L for this man

[Rachel Berry]

The clown came back to bite!

[mxoonlight]

TANKED  

[Guest]

Edited September 27, 2022 by Fetch

[qurl]

it’s all too technical for me to fully understand but what blows my mind in all of this is that an iconic , legendary almost 100 year old entity like Warner Brothers had to merge with …. Discovery ??? to the point they called themselves Warner Bros Discovery ??? like was warner brothers struggling THAT much that they had to link up and share their namesake with this inconsequential cable tv channel ??? i mean i know discovery channel has been around but …. suffice it to say it’s not Warner Bros

[P.O.P]

Trixie Motel is available on Discovery+

[Jude]

[Harmonizer]

All these streaming apps are going to crumble.

[Oxy]

What’s sad is they have the best contents among streaming services. 

[Attitude]

Leslie Grace's karma.

[Poxy]

Wakko, Yakko and Dot do NOT deserve this

[Bloodflowers.]

Leave our HBO MAX alone 

[bliaz]

[fridayteenage]

well hbo only sporadically shares streaming numbers and they tend to be very vague, no wonder they're flopping

[stjosephprey4us]

Play stupid games win stupid prizes

[Mitsouko]

3 hours ago, qurl said:

it’s all too technical for me to fully understand but what blows my mind in all of this is that an iconic , legendary almost 100 year old entity like Warner Brothers had to merge with …. Discovery ??? to the point they called themselves Warner Bros Discovery ??? like was warner brothers struggling THAT much that they had to link up and share their namesake with this inconsequential cable tv channel ??? i mean i know discovery channel has been around but …. suffice it to say it’s not Warner Bros

This. It feels weird that the historic Warner, RKO, and MGM libraries -together the largest and arguably most lucrative film catalogue in the world - now live alongside 90 Day Fiancée and Dr. Pimple Popper in a company’s portfolio. Like it’s Bette Davis and Humphrey Bogart and James Cagney, and then the Family Chantel and My Big Fat Fabulous Life, with latter being more important to the new bosses than the former.

[Broken]

Warner can't catch a break .

[Gossip_Boy]

Instant karma for killing Infinity Train 

[Anye]

Leave HBO alone 

[BowWow]

What does this mean about the numbers released for euphoria ? We’re they overstated? What about  the future of Abel’s show the idol?  unless I’m mixing hbo and hbo max again?