Warner Bros Discovery Revenue Drops 6 Percent in Quarter

Warner Bros. Discovery, Inc. reported a 6% decline in quarterly revenue as the media giant navigates a competitive bidding war for its future. Total revenue for the period reached nearly $9.5 billion, a figure that aligned with market expectations. While the company's traditional television and film segments faced significant headwinds, its streaming division provided a notable bright spot. The HBO Max streaming service added 3.5 million subscribers during the quarter, bringing its global total to 131.6 million. This growth was fueled by popular content such as Heated Rivalry and It: Welcome to Derry. Revenue for the streaming group climbed 5% to approximately $2.8 billion, although adjusted earnings for the segment dipped 4% to $393 million following the conclusion of a specific distribution agreement. In contrast, the film and television studio group saw adjusted income tumble 23% to $728 million. Despite releasing several box-office leaders earlier in 2025, the studio lacked major theatrical releases during the holiday quarter. The television studio also struggled, with revenue sliding 18% due to the timing of content renewals. The company's linear network business, Discovery Linear Networks, continued to suffer from the industry-wide trend of cord-cutting. Revenue for the television unit fell 12% to $4.2 billion, while adjusted income plummeted 27% to $1.4 billion compared to the same period last year. The financial results come as the board evaluates a complex merger landscape. Paramount Skydance Corporation Class B Common Stock recently increased the pressure by presenting an improved cash offer, potentially disrupting an existing agreement with Netflix, Inc.. While the board has not yet determined if the new proposal is superior, directors have committed to further engagement. Under current terms, if a superior offer is officially recognized, the existing partner would have four business days to revise its own bid.