Key Highlights

  • Warner Bros. Discovery delivered Q4 results showing a 10-cent per share loss, exceeding analyst projections of a 3-cent loss.
  • Total revenue declined 6% to reach $9.46 billion, while linear networks adjusted EBITDA fell 27% to $1.41 billion.
  • The streaming platform HBO Max gained 3.5 million subscribers during the quarter, bringing the total to 131.6 million, with revenue climbing 5% to $2.8 billion.
  • The company currently evaluates a $31 per share proposal from Paramount Skydance alongside an existing $27.75 per share agreement with Netflix.
  • Reports indicate Netflix CEO Ted Sarandos planned a White House meeting Thursday regarding the streaming company’s acquisition proposal.

Warner Bros. Discovery released fourth-quarter financial results Thursday that fell short of analyst projections, reflecting ongoing challenges in its legacy television and film operations.

The media giant recorded a 10-cent per share loss. Wall Street analysts had anticipated a smaller loss of 3 cents per share, based on FactSet data.

Total revenue reached $9.46 billion, representing a 6% decline compared to the prior year period. The figure came close to the LSEG consensus projection of $9.35 billion.


WBD Stock Card
Warner Bros. Discovery, Inc., WBD

WBD shares climbed 0.1% to $28.91 during premarket hours, showing limited momentum in either direction.

The traditional cable and linear television operations experienced continued pressure. Revenue for the Discovery Linear Networks division decreased 12% to $4.2 billion. Adjusted EBITDA for this segment plunged 27% to $1.41 billion — aligning with analyst expectations while still representing a significant downturn.

The studio operations also faced headwinds. Adjusted income fell 23% to $728 million. The film division lacked significant theatrical releases during the holiday quarter, following a strong 2025 performance that saw nine titles reach the top of the box office.

The television studio segment encountered difficulties related to content renewal timing, with revenue dropping 18%.

Streaming Performance Shines

Several business units delivered positive results. HBO Max stood out with strong performance, fueled by popular programming including “Heated Rivalry” and “It: Welcome to Derry.”

The streaming division attracted 3.5 million new subscribers during the quarter, pushing its worldwide total to 131.6 million. Revenue from streaming operations increased 5% to approximately $2.8 billion.

Adjusted earnings for the streaming business decreased 4% to $393 million, attributed to the conclusion of an undisclosed distribution agreement.

Competing Acquisition Proposals

The quarterly financial performance takes a back seat to the unfolding acquisition drama surrounding Warner Bros. Discovery.

Last December, WBD reached an agreement to transfer its streaming and studio operations to Netflix for $27.75 per share. The arrangement called for spinning off cable assets to current shareholders.

More recently, Paramount Skydance entered the picture by indicating interest in presenting a higher all-cash proposal for the entire Warner Bros. Discovery company. This week, WBD’s board announced it would evaluate whether the Paramount proposal “could reasonably be expected” to constitute a superior transaction.

Paramount contends that the Discovery linear operations hold no equity value, referencing the trading performance of Versant Media Group — which owns CNBC and serves as a comparable entity — since its market debut last month.

According to Politico, citing two sources with knowledge of the situation, Netflix CEO Ted Sarandos had a White House meeting scheduled for Thursday to address Netflix’s acquisition proposal. Netflix declined to provide immediate comment.

WBD’s board continues deliberating on whether the Paramount offer represents a superior alternative to the Netflix transaction. Should the board make that determination, Netflix would receive four business days to submit a revised proposal.

Thursday’s earnings announcement did not reference the ongoing Paramount negotiations.