Warner Bros Discovery Relinquishes Remaining Stake In Joyn Streaming Service

ProSiebenSat.1 Media SE PBSFY slashed its 2022 core earnings outlook after acquiring the remaining 50% of shares in streaming service Joyn from Warner Bros. Discovery, Inc WBD.
ProSiebenSat will acquire the remaining 50% stake in Joyn, launched in 2019, for the symbolic price of €1, ProSiebenSat CEO Rainer Beaujean told Reuters.
ProSiebenSat 1 Media expects the complete consolidation of Joyn to make a €25 million dent in 2022 adjusted earnings before interest, tax, depreciation, and amortization (EBITDA).
Therefore, it cut down its outlook for 2022 adjusted EBITDA to €780 million, with a variance of plus/minus €25 million, versus a previously forecast €805 million plus/minus €25 million.
The group, however, stuck to its previous 2022 forecast for adjusted net income of around €4.375 billion ($4.45 billion), with a variance of plus/minus €75 million, primarily in line with the previous year.
"This gives us strategic security," he said.
Like rivals Netflix, Inc NFLX and Walt Disney Co DIS, Warner focused on global subscription models, while Joyn will remain ad-financed and limited to German-speaking countries, Beaujean added.
After enjoying massive popularity during the pandemic, the streaming industry is battled subscriber loss amid recovery coupled with surging inflation and lower consumer spending.
Warner wants to prioritize the upcoming integration of Discovery+ content into the HBO Max platform.
Price Action: WBD shares traded lower by 2.22% at $13.02 on the last check Tuesday.

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