Following the news of job-losses from Oprah Winfrey 's Own Tv network, financial analysts have announced that the network could lose up to $142.9 million in 2012. The big cut announced last week was the news that Rosie Donnell's talk show has been cancelled, well in advance of the end of the two year deal.
New York Daily News reports today that the financial analyst firm Snl Kagan have been assessing the struggling network's books and announced the forecasted loss, adding that Own had paid a $15 million sum from what should have been a $40 million contract. They also suggest that further cuts are likely. "staff reduction and the cancellation of 'The Rosie Show' are clear signs that the network is struggling," said Snl Kagan analyst Derek Baine, before suggesting that further financial constraints are necessary if Own want to avoid having the plug pulled on them by Discovery Communications.
A spokesman for Discovery, however, has refuted the extent of the problems, saying that the report is "riddled with inaccuracies and bad information." David Leavy also stressed the network's credentials, stating that "last Sunday, Own was the number one cable network for women and people at 10 p.m. We remain confident in the future of Own and the long-term value we are building." Oprah Winfrey herself - Ceo of the network - has said that she regrets having to make decisions that result in job losses but that it was necessary to ensure the long term future of the project, saying "the economics of a startup cable network just don't work with the cost structure that was in place."