Warner Bros. Discovery(US:WBD) Deadlineยท2025-11-06 12:31Core Insights - Warner Bros. Discovery (WBD) experienced a mixed third quarter, with significant hits in film but declining advertising revenue, reinforcing the rationale for a potential sale or split of its business segments [1][5]. Financial Performance - Consolidated revenue decreased by 16% to $1.4 billion, missing Wall Street expectations, and the company reported a net loss of $148 million. Adjusted earnings rose by 2% to $2.5 billion, with $1.3 billion in restructuring expenses and one-time charges [1]. - Advertising revenue fell by 16% to $1.4 billion, impacted by tough comparisons with the previous year due to the Summer Olympic Games and a decline in domestic pay TV subscribers [3]. Theatrical and Streaming Performance - Theatrical revenue surged by 74%, contributing to a 23% increase in studio revenue to $3.3 billion. Notable film performances included DC's Superman grossing $615 million, Weapons exceeding $267 million, and The Conjuring: Last Rites surpassing $490 million [2]. - HBO Max added 2.3 million subscribers, reaching a total of 128 million, with streaming revenue remaining flat at $2.6 billion and profit increasing by 19% to $345 million [4]. Strategic Moves - WBD announced plans to split its businesses but has also received multiple bids for acquisition, including a recent offer of $23.50 from David Ellison, the new owner of Paramount. The company is exploring offers for both the entire business and its individual segments [5][6]. - The company aims to finalize any potential transactions by year-end; if unsuccessful, it plans to proceed with the split of its studio and streaming operations from linear television by mid-2026 [6].