TLDR

  • Warner Bros. Discovery reported a fourth-quarter loss of 10 cents per share, worse than the 3-cent loss analysts had projected.
  • Revenue dropped 6% to $9.46 billion, with adjusted EBITDA for linear networks declining 27% to $1.41 billion.
  • HBO Max added 3.5 million subscribers, reaching a total of 131.6 million, with revenue rising 5% to $2.8 billion.
  • WBD is evaluating a $31-per-share bid from Paramount Skydance against an existing $27.75-per-share agreement with Netflix.
  • Netflix CEO Ted Sarandos was scheduled to visit the White House on Thursday to discuss the streaming giant’s bid.

Warner Bros. Discovery released fourth-quarter earnings on Thursday that fell short of Wall Street expectations, as its traditional TV and film businesses continued to lose ground.

The company recorded a loss of 10 cents per share. Analysts had forecast a loss of just 3 cents per share, based on FactSet data.

Revenue came in at $9.46 billion, a 6% decrease from the same quarter a year earlier. This was roughly in line with the LSEG consensus estimate of $9.35 billion.

WBD Stock Card

WBD stock inched up 0.1% to $28.91 in premarket trading, though it remained directionless.

The cable and linear TV segment of the business took another hit. The Discovery Linear Networks unit saw revenue fall 12% to $4.2 billion. Adjusted EBITDA for the segment dropped 27% to $1.41 billion — matching Wall Street’s forecast, but still a sharp decline.

The film and TV studio group also struggled. Adjusted income tumbled 23% to $728 million. The film studio had no major theatrical releases in the holiday quarter after placing nine movies at the top of the box office in 2025.

The TV studio was impacted by the timing of content renewals, with revenue sliding 18%.

Streaming Held Up

Not all aspects were negative. HBO Max stood out as a bright spot, driven by popular series such as “Heated Rivalry” and “It: Welcome to Derry.”

The streaming unit added 3.5 million subscribers in the quarter, bringing its global total to 131.6 million. Streaming revenue rose 5% to nearly $2.8 billion.

Adjusted earnings for the streaming segment dipped 4% to $393 million, due to the end of an unspecified distribution deal.

The Takeover Fight

Earnings results are now of secondary importance. All focus is on the next developments in the bidding war for

In December, WBD agreed to sell its streaming and studios business to Netflix for $27.75 per share. Under that deal, the cable assets would be spun off to existing investors.

Then last week, raised the stakes by floating the possibility of a higher cash offer for the entirety of Warner Bros. Discovery. On Tuesday, WBD’s board stated it would assess whether the Paramount bid “could reasonably be expected” to lead to a superior proposal.

Paramount has argued that the Discovery linear assets hold zero equity value, pointing to the trading performance of Versant Media Group — owner of CNBC and viewed as a comparable company — since its market debut last month.

Netflix CEO Ted Sarandos was scheduled to visit the White House on Thursday to discuss Netflix’s bid, according to Politico, citing two individuals familiar with the talks. Netflix did not immediately respond to a request for comment.

WBD’s board has not yet determined whether the Paramount proposal is superior to the Netflix deal. If it concludes that it is, Netflix would have four business days to revise its offer.

The earnings statement released on Thursday made no mention of the Paramount discussions.