Paramount's latest earnings report revealed a staggering write-down of nearly $6 billion in the value of its cable networks, primarily due to declining audience numbers.

The company reported a total revenue of $6.8 billion for the quarter, marking an 11% decline from the previous year and falling short of analyst expectations.

This significant write-down follows a similar action by Warner Bros. Discovery, which recorded an even larger impairment charge of $9.12 billion.

In response to financial pressures, Paramount plans to lay off approximately 15% of its U.S. workforce, impacting around 2,000 employees as part of a broader strategy to reduce costs.

The layoffs are anticipated to incur a restructuring charge between $300 million and $400 million in the third quarter, as the company aims to streamline operations.

Despite these challenges, Paramount's co-CEOs expressed confidence in achieving domestic profitability for Paramount+ by 2025, emphasizing a strategic focus on transforming streaming.

Notably, Paramount's streaming business, which includes Paramount+ and PlutoTV, reported its first quarterly profit with an operating income of $26 million, a significant turnaround from a $424 million loss the previous year.

The ongoing merger with Skydance Media is currently under regulatory review, with a target closing date in the first half of 2025, pending any late offers during the 'go-shop' period.

This merger has prompted Paramount to reassess the value of its divisions, contributing to the recent operating loss of $5.3 billion for the second quarter.

Currently, the total equity value of Paramount is estimated at $7 billion by public investors, reflecting the company's struggles amidst a shifting media landscape.

As a result of these developments, Paramount's stock price fell by 3% to $10.18, marking a nearly 30% decline in 2023.