By Josh Beckerman
Viacom Inc. announced Monday that it plans to take a $785
million pretax charge as part of a strategic realignment that
includes layoffs and writing down the value of underperforming
programming.
The media giant said the realignment includes reorganizing three
of its domestic network groups into two new organizations.
The company said the second-quarter charge reflects write-downs
of underperforming programming, including the "abandonment of
select acquired titles," and costs related to workforce reductions.
The charge also includes accelerated amortization of programming
expenses related to a change in revenue projections "for certain
original programming genres that have been impacted by changing
media consumption habits."
Viacom has faced concerns on Wall Street that pay-TV providers
will decide they can do without its bundle of channels, including
Comedy Central, Nickelodeon, MTV, TV Land and Spike.
The initiatives are expected to provide ongoing annual savings
of about $350 million, Viacom said, including $175 million in the
current fiscal year.
Write to Josh Beckerman at josh.beckerman@wsj.com
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