Amid the multibillion-dollar battle for Warner Bros., the company loses $252 million - Los Angeles Times

Los Angeles Times

by Meg James

February 26, 2026

AI-Generated Deep Dive Summary

Amid the high-stakes bidding war between Paramount and Netflix for Warner Bros., the company reported a $252 million loss in its latest quarter. Despite growth in its HBO Max and Discovery+ streaming services, traditional cable channels continue to decline, with revenue falling 12% and advertising revenue dropping due to the loss of TNT’s NBA contract. Warner Bros. also faced challenges from restructuring costs tied to its 2022 merger with Discovery, resulting in a $1.3 billion write-down. These factors contributed to the significant quarterly loss. Warner Bros. CEO David Zaslav highlighted the company’s successes, including box office hits like "Sinners" and "Weapons," which generated $4.4 billion in theatrical revenue in 2025. However, overall revenue dropped 13% to $3.2 billion, reflecting broader industry shifts. The company’s debt, now at $33.5 billion, stems from the merger and has led to thousands of job cuts and canceled projects. Despite these challenges, Warner stock remained stable due to the ongoing bidding war with Paramount, which sweetened its offer to over $110 billion, including streaming assets and a vast library of content. The battle for Warner Bros. underscores the competitive landscape of the streaming wars, where traditional cable networks are struggling while streaming services show promise but lack scale. Warner’s financial struggles highlight the ongoing challenges of restructuring, high debt, and the slow shift to digital entertainment. Investors and industry watchers are closely monitoring these developments, as the outcome could reshape the future of global media and entertainment. This situation matters because it reflects broader trends in the media industry, including the decline of traditional cable, the rise of streaming, and the intense competition among major players. The financial stakes are high for all involved, with implications not only for Warner Bros. and Paramount but also for the thousands of workers affected by job cuts and content cancellations. As the battle for Warner Bros. continues, the outcome could set a precedent for future mergers and acquisitions in an increasingly digital world.

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Originally published on Los Angeles Times on 2/26/2026