English Entertainment
WWE reports decline in 4Q revenue, operating income
MUMBAI: World Wrestling Entertainment (WWE) has announced financial results for its fourth fiscal quarter ended 30 April 2006. Revenues totaled $114.3 million as compared to $118.3 million in the prior year quarter and operating income was $15.1 million as compared to $22.5 million in the prior year quarter.
In India, viewers can catch WWE action on Ten Sports.
WWE reported net income of $10.6 million as compared to $16.1 million in the prior year quarter. WWE CEO Linda McMahon says, “Our fourth quarter operating results capped off a very successful year as we generated $400 million in revenues in fiscal 2006, reflecting strong performances by our home video, licensing and digital media businesses.
“In the fourth quarter, we continued to make strategic investments in key areas such as our digital business initiative and global marketing campaigns. Our WrestleMania 22 results in the fourth quarter continue to demonstrate the power of both that event and of the overall WWE brand and their respective places in pop culture. Also, we are relaunching the ECWbrand via weekly television performances on the Sci Fi Channel and through a distinct touring group performing in smaller venues. This type of performance gives our fans a different wrestling experience. Raw, SmackDown and ECW now represent a portfolio of WWE brands for fans of all ages and interests to enjoy.”
Revenues from live and televised entertainment businesses were $92.3 million for the current quarter as compared to $102.2 million in the prior year quarter, a decrease of 10 per cent primarily reflecting the absence of domestic cable ad revenues.
Pay Per View (PPV) revenues were $35.4 million as compared to $34.6 million in the prior year quarter. There were four PPV events produced in the current quarter as compared to three events in the prior year quarter. International events generated approximately $13 million in the current quarter as compared to $16.0 million in the prior year quarter.
The current quarter included a highly successful 16 event European tour as well as several events in emerging territories, including the Philippines and Thailand. Although the emerging territories yield lower revenues as compared to other international markets, WWE says that these tours, combined with its TV presence, establish our brand presence which allows it to develop the other businesses such as licensing, PPV and home video sales.
English Entertainment
Warner Bros. Discovery shareholders approve Paramount deal
Investors wave through a $111 billion megamerger but deliver a stinging, if toothless, rebuke over half-a-billion-dollar goodbye packages
NEW YORK: The shareholders said yes to the deal. They said no to the cheque. At a virtual special meeting on Thursday that lasted barely ten minutes, Warner Bros. Discovery investors voted overwhelmingly to approve Paramount Skydance’s $111 billion acquisition of the company — and then turned around and voted against the lavish exit pay packages lined up for chief executive David Zaslav and his fellow outgoing executives.
Not that it will make much difference. The compensation vote is purely advisory and non-binding. The Warner Bros. Discovery board can, and almost certainly will, pay out as planned.
But the symbolism stings. It is the second consecutive year that WBD shareholders have voted against the executive compensation packages, and this time they had good reason. Zaslav’s exit deal is, by any measure, extraordinary. Under the terms filed with the Securities and Exchange Commission, he is set to receive $34.2 million in cash severance, $517.2 million in equity in the combined company, and $44,195 in continued health coverage — a total of at least $550 million. On top of that, Warner Bros. Discovery has agreed to reimburse Zaslav up to $335 million for taxes assessed by the Internal Revenue Service on his accelerated stock vesting, though the company says that figure will decline depending on when the deal closes. As of March 11, Zaslav also held $115.85 million in vested WBD stock awards — and last month sold a further $114 million worth of WBD shares.
Shareholder advisory firm ISS recommended voting against the compensation measure, citing “problematic” tax reimbursements to Zaslav and the full vesting of his stock awards.
Zaslav will be bound by a two-year non-competition covenant and a two-year non-solicitation of customers and employees after the deal closes.
His lieutenants are not walking away empty-handed either. J.B. Perrette, chief executive and president of global streaming and games, is in line for $142 million, comprising $18.2 million in cash severance and $123.9 million in equity. Bruce Campbell, chief revenue and strategy officer, will receive an estimated $121.5 million, including $18.8 million in severance and $102.7 million in equity. Chief financial officer Gunnar Wiedenfels is set for $120 million, made up of $6.6 million in cash severance and $113.1 million in equity. Gerhard Zeiler, president of international, will get $82.6 million, including $11.9 million in severance and $70.7 million in equity.
The deal itself, clinched in February after Netflix declined to raise its bid for Warner Bros., still needs regulatory clearance from the Justice Department and European authorities. Several state attorneys general are also weighing legal action to block it.
Senator Elizabeth Warren, Democrat of Massachusetts, was unsparing. “The Paramount-Warner Bros. merger isn’t a done deal,” she said after the shareholder vote. “State attorneys general across the country are stepping up to stop this antitrust disaster. We need to keep up this fight.”
If it does go through, the combined entity would be a formidable beast, bringing together Paramount Skydance’s stable — CBS, CBS News, Paramount Pictures, Paramount+, BET, MTV and Nickelodeon — with WBD’s portfolio of HBO, Max, Warner Bros. film and TV studios, DC, CNN, TBS, TNT, HGTV and Discovery+. Paramount has said it expects $6 billion in cost savings from the merger, which is Wall Street shorthand for mass layoffs on a significant scale.
The ten-minute meeting was presided over by chairman Samuel Di Piazza Jr., with Zaslav, Campbell, Wiedenfels and chief communications officer Robert Gibbs in virtual attendance. Di Piazza was bullish. “We appreciate the support and confidence our stockholders have placed in us to unlock the full value of our world-class entertainment portfolio,” he said. “With Paramount, we look forward to creating an exceptional combined company that will expand consumer choice and benefit the global creative talent community.”
Zaslav echoed the sentiment. “Over the past four years, our teams have transformed Warner Bros. Discovery and returned the company to industry leadership,” he said. “Today’s stockholder approval is another key milestone toward completing this historic transaction that will deliver exceptional value to our stockholders.”
Paramount Skydance struck a similar note. “Shareholder approval marks another important milestone towards completing our acquisition of Warner Bros. Discovery,” it said in a statement, adding that it looked forward to “closing the transaction in the coming months.”
The shareholders have spoken on the merger. On the pay, they were ignored before the vote was even counted.
