The answer was pretty clear: the films were made for streaming and the new CEO doesn't think streaming is a priority and is choosing to write them off to save money.
"Warner Bros didn't think that ticket sales / streaming revenue would recoup the losses they'd incur by paying for marketing, distribution, rights negotiation, and all the other costs they're saving by stopping the project here."
That's the bit I don't understand. That money they spent on developing the film will get written off against tax whether the film is launched or not. How is it different if they scrap the film?
Normally, that is the case. But the tax code is riddled with special exceptions and carve outs for all kinds of special interests, so I wouldn't be surprised if there was some kind of special tax credit or write off of unrealized profits specifically for the film industry.