Communications services shares sank amid earnings.
Warner Bros Discovery shares declined 17% after the new company swung to a $3.42 billion loss in the second quarter, which it said was partly due to charges related to the recent merger that created the media giant. The company is exploring launching a free, ad-supported streaming service, its chief executive said, the latest effort by a streaming giant to reach a broader audience as the competition for users intensifies.
In addition, late Thursday, Warner Bros. Discovery said it has scrapped "Batgirl," a superhero movie with a star-studded cast that was to be sent directly to its HBOMax streaming service next year without a theatrical release.
Meanwhile, Elon Musk accused Twitter of fraud, saying the company misrepresented the condition of its business and key metrics about the users on its platform before he agreed in April to acquire the company for $44 billion.
TikTok is getting rid of pandemic-era perks including daily meal stipends for many employees, according to people familiar with the situation, as the company pushes staff to work more from its offices.
Advertising giant WPP again raised its guidance for 2022, saying that marketer demand remains strong despite the uncertain economic background.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
08-05-22 1734ET
