Warner Bros. Discovery Lost $252 Million in the Quarter Everyone Decided They Wanted to Buy It

Hollywood Reporter

by Anthony Maglio

February 26, 2026

AI-Generated Deep Dive Summary

Warner Bros. Discovery (WBD) reported its fourth quarter 2025 results, revealing a net loss of $252 million despite generating $9.46 billion in revenue. The company, which operates both streaming services and traditional networks, saw a modest rise in global streaming subscribers to 131.6 million—an increase of 3.5 million from the previous quarter. However, advertising revenues dropped by 9%, largely due to the loss of the NBA on Turner. Studio revenues also fell by 13% year-over-year, driven by lower content sales, while linear network revenue declined by 12%. The company’s financial performance comes amid a high-stakes battle for its acquisition. Netflix agreed to purchase WBD earlier this year in a $83 billion deal, contingent on the separation of Warner Bros. and Discovery. However, Paramount, now rebranded as Paramount Skydance, has emerged as a formidable competitor, offering an even higher bid for the entire WBD entity. This has created a complex dance between the two tech giants, with Paramount pushing to acquire both Warner Bros. and Discovery in a potential $100 billion deal. The situation is further complicated by the separation process, which mirrors the NBCUniversal model, where Turner assets would likely be spun off into a standalone Discovery Global entity. Meanwhile, WBD’s leadership remains focused on navigating this merger maze while maintaining operational stability. The company’s CEO, David Zaslav, will continue to oversee Warner Bros., while Gunnar Wiedenfels, WBD’s CFO, is set to lead the newly separated Discovery. This acquisition war highlights the high stakes of streaming dominance in the entertainment industry. For media enthusiasts and investors alike, the outcome of this battle could reshape the global content distribution landscape. With both Netflix and Paramount vying for control, the future of Warner Bros. and Discovery hangs in the balance, potentially influencing everything from content creation to audience access.

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Originally published on Hollywood Reporter on 2/26/2026