AMC Community stated immediately it can take write-downs for as much as $475 million because it restructures its enterprise to chop prices. That features as much as $400 million for content-related strikes that decision “strategic programming assessments” and $75 million for organizational restructuring prices together with severance.
The shakeup on the Dolan-controlled firm got here Tuesday as CEO Christina Spade stepped down and the corporate introduced plans to put off 20% of its US workers, or about 200 individuals. Chairman James Dolan despatched a dire memo to workers, the checklist of which was reiterated in an SEC submitting immediately. It stated AMC Networks began a restructuring on Monday, aiming to “obtain vital price reductions, in mild of ‘wire chopping’ and the associated impacts being felt throughout the media business in addition to the broader financial outlook. The plan encompasses initiatives that can embrace, amongst different issues, strategic programming assessments and organizational restructuring prices.”
Extra from Deadlines
It stated the “programming assessments pertain to a broad mixture of owned and licensed content material, together with legacy tv collection and movies that can not be in lively rotation on the corporate’s linear or digital platforms.” It is not instantly clear which titles are a part of the write-downs.
AMC could “notice some future licensing and different income related to a few of the owned titles.”
Breaking down the quantity, the corporate estimates it can incur roughly $350 million to $475 million in pre-tax restructuring costs consisting of: strategic programming assessments resulting in content material costs of roughly $300 million to $400 million; and organizational restructuring prices, together with severance, retention and different prices, of roughly $50 million to $75 million.
Deadlines reported earlier immediately that these leaving as a part of the layoffs embrace David Stefanou, SVP Authentic Programming & Improvement for WE television, who led the event workforce in creating reveals such because the hits Love After Lockup franchises; in addition to Marco Bresaz, SVP of non-fiction & different programming for AMC and SundanceTV, who helped oversee each networks’ authentic non-fiction programming growth and their portfolio of present non-fiction programming.
Of the quantities above, the estimated money expenditures ensuing from the restructuring are estimated to be within the vary of roughly $75 million to $100 million, the vast majority of which can be made in 2023.
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