Report: Oprah’s Struggling Network May be in The Hole For as Much as $330M
- Posted on May 7, 2012 at 3:37pm by
Becket Adams
- Print »
- Email »
It’s been a tough go of it for Oprah Winfrey, the former queen of daytime television. She’s been excluded from Time’s annual list of influential people and it’s no secret that her Oprah Winfrey Network (OWN) is struggling for ratings.
“[T]he new cable channel attracts less than a 10th of the audience her syndicated TV show used to pull in,” Edmund Lee and Andy Fixmer write in Business Week.
But even with lousy ratings and a loss of clout, it looks like Winfrey has yet to address her biggest problem: the increasing amount of cash OWN owes its partner, Discovery Communications.
“Winfrey’s gold-plated brand has been tarnished by the network’s slow start, but [David] Zaslav’s [executive officer of Discovery Communications and Winfrey’s partner and half-owner of OWN] bank accounts may have suffered even more,” Lee and Fixmer report.
“From its 2008 inception through Dec. 31, OWN may have lost as much as $330 million [emphasis added],” their report adds.
The Discovery channel fronted the money for OWN and, so far, that investment has not paid off. In fact, even if Winfrey’s network turns a profit in 2013, Discovery may still be forced to write off some of the $420 million it invested.
Here’s a more complete overview of the financial damage [emphases added]:
Discovery has poured at least $585 million into OWN. It contributed the Discovery Health Channel (OWN took its slots on cable systems), which it valued at $273 million, as its equity stake and loans and interest of $312 million, according to the SEC filing. (OWN’s borrowings from Discovery have tripled since the venture was formed.) The lower $420 million investment value Discovery noted in its yearend filing suggests its share of the OWN loss is $165 million and growing.
Discovery “expects operating losses at OWN to exceed the balance of equity contributions recorded by OWN,” according to the company’s filing.
But Winfrey’s name still carries some weight.
“Advertisers still want to be a part of Oprah’s brand,” Brad Adgate, head of research at media-buying firm Horizon Media said. “It’s not a four-alarm fire yet as far as marketers go.”
But that’s not to say the network is without major problems. There have been changeups and firings at the executive level, the network was forced to reduce its 150 person staff by 30 last year, the ill-fated “Rosie O’Donnell Show” got the boot, and Discovery has had to increase its loan commitment several times (from $100 million in 2008 to $242 million last June).
Nevertheless, a couple of Discovery executives are hopeful that the savings made in network cuts as well as new contracts hammered out with cable providers will turn around the network’s money problems.
“If we grow a meaningful audience that wants to spend time with OWN, and we think that we will,” Zaslav said, “this will be a very significant asset.”
But what’s the real bottom line?
“Discovery Networks invested more than $500 million in Oprah Winfrey’s cable network, which may have lost more than $300 million,” Lee and Fixmer write.
(H/T: TV News Check)
Popular Stories
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 581 Comments
‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 411 Comments
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 407 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 373 Comments
President Obama Issues Major ‘Green Energy’ Executive Order 362 Comments
Faith
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 407 Comments
Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 411 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
- President Obama Issues Major ‘Green Energy’ Executive Order 362 Comments
- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 151 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 302 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 407 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (150)
Beckofile
Posted on May 7, 2012 at 4:07pmThis is what happens when limbs or commies run companies or countries. Just look what the other O has done to the whole USEconomy.
Report Post »KickinBack
Posted on May 7, 2012 at 5:00pmI smell a bailout.
Report Post »MittensKittens
Posted on May 7, 2012 at 5:02pmNow that‘s the funniest thing I’ve seen in the news today, I really like the picture of her and Obuma…fruit doesn’t fall far from the tree.
Report Post »Maxim Crux
Posted on May 7, 2012 at 5:16pmKickinBack…you are right…bailout time for OWN. When that happens, the network will be the new mouthpiece of the government under the NWO.
Report Post »ACLUHater
Posted on May 7, 2012 at 5:31pmWho will drool over Obama if this racist leaves TV? Ellen?
Report Post »SERUM
Posted on May 7, 2012 at 5:59pmGood Lord!! That’s all I gotta say!
Report Post »db321
Posted on May 7, 2012 at 6:27pmHey Oprah – how is Obama working out for you! Lesson here – never put you money on anyone that has the Reverse Midas Touch!
Report Post »doomytram
Posted on May 7, 2012 at 6:28pmObama administration spends 335 million a minute. Obama is going turn Oprah into an mini millionaire instead of a billionaire.
Report Post »Maji
Posted on May 7, 2012 at 6:39pmThose two in that photo shows what the power
Report Post »of a good“makeup artist” holds!
Hillary Clinton woud be a good example too!
Detroit paperboy
Posted on May 7, 2012 at 7:16pmAnd I guarantee, not one penny of Oprahs billion is at risk,,,,, it‘s always other people’s money with leftys………
Report Post »SW54
Posted on May 7, 2012 at 11:48pmHope she goes in the toilet……
Report Post »LaBelle
Posted on May 8, 2012 at 2:37am“O” went down hill the minute she endorsed obummer.
Report Post »RamonPreston
Posted on May 8, 2012 at 3:56amKittens … or monkeys
Report Post »RestoredAmerican
Posted on May 8, 2012 at 7:26amMaybe she should ask the GB crew how its done!
Report Post »Tom70
Posted on May 8, 2012 at 12:12pmNow what will all the unemployed do when they get up at 11AM and start to watch TV? NO “OP”?
Report Post »VoteRightDammit
Posted on May 7, 2012 at 4:07pmThree hundred thirty MILLION ?????????
WOW!
That’s a MILLION DOLLARS for every one of her pounds!
Report Post »Jacque
Posted on May 7, 2012 at 4:15pmWhat goes around comes around That’s what she gets for supporting a marxist! Remember she said “We won”! What a racist!
Report Post »yiska8
Posted on May 7, 2012 at 4:34pmDidn’t Oprah say that Americans kids are not mathematically inclined? Great math skills and funny @voterightdammit
Report Post »ijava44
Posted on May 7, 2012 at 4:55pmzzzziiiiiiiinnnnngggggg! She might be too big to fail. Pound wise.
Report Post »clinker
Posted on May 8, 2012 at 6:00amShe’s a shoe in for something government. She knows exactly how to make money disappear at astonishing rates.
Report Post »RamonPreston
Posted on May 8, 2012 at 2:17pmRush had a segment today about black women wanting to be fat. White women are skinny and they don’t want to be like white women. You know, working, holding a job, not on public assistance…
Report Post »Master.Debater
Posted on May 7, 2012 at 4:05pmThey should change the name of the network to OWNED
Report Post »cherigc
Posted on May 7, 2012 at 4:24pmPeople, this is a GREAT example of Karma!!!!!! I said during the election when she backed Obama and didnt allow Palin on her show she was DONE!!!!!!!! now look!!!!!!
Couldnt have happened to a better person…Next bad karma is Obama and his pig of a wife…BYE BYE@@
Report Post »spirited
Posted on May 7, 2012 at 4:27pmor, OWNS
>“s” for sank or su(ks,
Report Post »TelepromoterNChief
Posted on May 7, 2012 at 4:42pmYou jerk.
You made me spit out my drink all over my desk after reading that.
That was too funny for my own consumption.
;)
Report Post »DebbieA.
Posted on May 7, 2012 at 4:05pmThe big “O” is worth over a billion dollars isn’t she? You know if I created a bill I either paid it or could be sued to pay it, why is she any different than I am? Shouldn’t she pay her bill for her big “O” mistake.
Report Post »HKS
Posted on May 7, 2012 at 4:03pmMaybe she could write it off as a 330 million dollar champagne contribution to Obama.
Report Post »On The Bayou
Posted on May 7, 2012 at 4:03pmOprah should remember how she made her millions. Average white America, the same folks that have been the target of the two people she is seen in this article with. This country is not ready for communism and you will see the response to communism in Novemeber of this year.
Report Post »Detroit paperboy
Posted on May 8, 2012 at 5:18amI agree, I think and hope and pray, that the Tea Party is a sleeping giant….. And comes alive in November……..
Report Post »MiCurmudgeon
Posted on May 7, 2012 at 4:02pmLook for Barack to stimulate her with our money.
Report Post »raderby
Posted on May 7, 2012 at 4:01pmTo the leftist Discovery board of directors : welcome to the real world.
Maybe Oprah should give away a few million Volts to boost Obama’s agendas? The money would on paper come from the Obama re-elect committee, and really, from unused STIMULUS funds, which means, in reality, WE THE PEOPLE would pay for it. All for an agenda that >50% of Americans are dead set against. (in fact, 20% of all Americans call themselves “liberal”)
Are we stupid yet?
Or should Obama appear on MYTHBUSTERS again, or Michelle on iCarly again (and generally dictate on NuckelHeadodeon? – dictating about moving and eating the way she wants – ) Then make appearances on EVERY Discovery show. That would be peachy.
NOT going to help. And I must admit – I have never seen one minute of Oprah’s show. But then I never watched a Sesame Street, either. Or “Housewives”, Jersey Shore, Keith Uber-mann or any MSNBC show for that matter.
So maybe the brain rot that do watch such closet communism won’t notice the unreality show called politics.
Report Post »Ruthie3
Posted on May 7, 2012 at 4:19pmDitto that and AMEN!
Report Post »Tri-ox
Posted on May 7, 2012 at 4:00pmI hope she fails.
Report Post »REPUBLICANINCALI
Posted on May 7, 2012 at 4:04pmShe helped him, let’s see if he helps her.
Report Post »Jacque
Posted on May 7, 2012 at 4:19pmShe will, good always wins!
Report Post »Blazesurfer
Posted on May 7, 2012 at 4:33pmTo big to fail!!!! hahaha. She’s a fat-fatty!
Report Post »TelepromoterNChief
Posted on May 7, 2012 at 4:39pmThat’s why we are where we are where we are today.
She’s too big to fail.
Report Post »fishandpoi
Posted on May 7, 2012 at 5:23pmShe will…. Aloha OWN. AND in Jan. 2013 Aloha Obama. Mahalo for nothing….
Report Post »this1can
Posted on May 8, 2012 at 12:27amI think she‘s been failing ever since she made the remark that Jesus isn’t the only way to salvation. She deserves to lose it all. And take her buddies down with her. Love/Pray
Report Post »thegreatcarnac
Posted on May 7, 2012 at 3:59pmFor a long time some misguided people (mostly women) thought Oprah was color blind. She proved she is nothing but the same old black-first clown. She came out whole-hog for obama and we all know he is a racist. People even heard she, at one time, was a member of Rev. wright‘s ’choich’.She was outed as nothing but a closet racist. No one likes her anymore. I hope her whole empire collapses around her.
Report Post »I.Gaspar
Posted on May 7, 2012 at 3:54pmMaybe she could auction off her extra toes to help defray some of the costs.
Report Post »abbygirl1994
Posted on May 7, 2012 at 3:54pmI lost all interest in Oprah when she started shoving Obama down our throats! Also, her newage crap! It was enough for me to stop watching her. I am thinking a whole lot of other people did the same!
Report Post »Marci
Posted on May 7, 2012 at 4:09pmI used to somewhat enjoy her show and would watch it occasionally as for the most part, in the past, there didn’t appear to be an agenda. Her mistake in 2008 was to endorse the Marxist. It made it easy to peer into her own life and the fact that even though she is filthy rich–even she couldn’t stomach the taxes on the rich in Hollyweird and therefore, didn’t live there. As she continued to show her face in support of this man, my respect for her went south. I thought of her as an accomplished businesswoman at one time, now she is just like every other out of touch celebrity. It’s as if they have no clue how much money they will be wasting in taxes under Progressive rule. I think they might feel the effects of a 70% tax on their earnings!
Report Post »SERUM
Posted on May 7, 2012 at 6:16pmDidn’t watch her, didn’t care for her, used to tell the family, “Shut off that racist!” and now they know…
Report Post »REETZBEE
Posted on May 7, 2012 at 3:54pmI don’t see how Oprah could think her network would succeed if you constantly show re-runs of the Dr. Phil Show, hire Rose O’Donnell, and play old tired movies that everybody has seen before.
Report Post »lukerw
Posted on May 7, 2012 at 3:53pmPoor Baby!
Report Post »djmaine
Posted on May 7, 2012 at 3:53pmShe’s probably starting up an alternative power company now to get her check.
Report Post »mlip
Posted on May 7, 2012 at 3:51pmThe freedom to try, the freedom to buy, the freedom to sell, the freedom to FAIL!
Report Post »yiska8
Posted on May 7, 2012 at 3:48pmI can smell an OWN bailout through tax dollars with her buddy Barry by executive order.Why would she use her own money or take the financial losses? She’s got plenty of money, but somehow I don‘t think she’ll be allowed to fail financially and publically just like the banks and automotive industry.
Report Post »zenjak
Posted on May 7, 2012 at 3:48pmHey it‘s nothing a big fat federal bailout can’t fix.
Report Post »HKS
Posted on May 7, 2012 at 3:47pmLiberals usually don’t do well running a business and this appears to be the case here.
Report Post »thekuligs
Posted on May 7, 2012 at 3:44pmGuess we know who would win in an Glenn vs Oprah network death match.
Report Post »spirited
Posted on May 7, 2012 at 3:43pmWoW! –Oprah did that to herself ?
Her buddy O did it himself
Report Post »>~~~to us ~~ and ~>her!
HKS
Posted on May 7, 2012 at 3:57pmIf stars had any brains at all, no one would ever know their politics. Dumb move.
Report Post »NHwinter
Posted on May 7, 2012 at 5:01pmHKS, I couldn’t agree more. If they valued their careers they would keep their mouths shut and just act, thats all we care about. I think we have gotten to the point where we don’t care about their acting anymore. Really not to bright of them.
Report Post »Socialism_Is_The_New_Black
Posted on May 7, 2012 at 3:43pmOprah, you ever felt like you hitched your wagon to the wrong horse?
Report Post »RamonPreston
Posted on May 8, 2012 at 2:13pmMore like the horse hitched itself to the wrong wagon
Report Post »janedough1
Posted on May 7, 2012 at 3:42pmThis gives me hope for November. If endorsing Obama did her this much harm, maybe more people have turned on him than the dinomedia allows us to know.
Report Post »wboehmer
Posted on May 7, 2012 at 3:42pmSeems everything started falling apart for the lady with the midas touch when she hitched her star to Øbama.
Report Post »HKS
Posted on May 7, 2012 at 3:55pmExactly.
Report Post »BOGOTSTOGO
Posted on May 7, 2012 at 3:41pmOprah who?
Report Post »Agnes
Posted on May 7, 2012 at 9:49pmThe “has been” who now realizes that the American people will not tolerate her or other celebrities itelling us who to vote for. How’s the hope and change working for you. A racist and a looser!
Report Post »