Last Updated: 11 July 2026
Warner Bros. Discovery is one of the world's largest media and entertainment companies, home to HBO Max, Warner Bros. film and television studios, CNN, Discovery, TNT, HGTV and the DC and Harry Potter franchises. Formed in 2022 from the merger of Discovery and WarnerMedia, the company spent 2025 deleveraging and returning to profit — and then agreed to be acquired outright. In February 2026 WBD signed a definitive agreement to be bought by Paramount Skydance for $31.00 per share in cash, an ~$81 billion equity deal that shareholders approved in April and US regulators cleared in June, with closing targeted for the third quarter of 2026. That pending transaction now dominates the investment picture. See also our Live Charts and Economic Calendar.
1. Company Snapshot
| Field | Value |
|---|---|
| Company | Warner Bros. Discovery, Inc. |
| Ticker / Exchange | WBD / NASDAQ |
| Sector | Communication Services — Media & Entertainment |
| CEO | David Zaslav (President & CEO) |
| Headquarters | New York, New York, USA |
| Founded | 2022 (merger of Discovery and WarnerMedia) |
| Employees | ~35,500 (as of 31 December 2025) |
| Market cap | ~$67bn (10 July 2026) |
| Revenue (FY2025) | $37.30bn (−5.2% YoY) |
| Net income (FY2025, GAAP) | $727m (first annual profit since the 2022 merger) |
| GAAP EPS (FY2025) | $0.29 |
| Dividend | None — suspended since the 2022 merger |
| Pending deal | Being acquired by Paramount Skydance at $31.00/share in cash |
2. Bull & Bear Case
Bull Case
- All-cash takeover sets a floor: Paramount Skydance's agreed $31.00 per share cash offer — approved by shareholders and cleared by the US DOJ — provides a hard reference value roughly 16% above the recent ~$26.78 share price, an event-driven, merger-arbitrage-style setup.
- Streaming has turned profitable: the Streaming segment swung to a ~$1.37 billion adjusted EBITDA and reached 131.6 million subscribers, validating the HBO Max strategy.
- Studios strength: the Studios segment delivered ~$2.55 billion of adjusted EBITDA, anchored by Warner Bros. film, television and games plus the DC and Harry Potter franchises.
- Aggressive deleveraging: gross long-term debt has been cut from ~$49 billion at the 2022 merger to ~$33 billion, materially reducing balance-sheet risk.
- Returned to profit: 2025 produced the first full-year GAAP net income ($727 million) since the merger, alongside $3.1 billion of free cash flow.
Bear Case
- Deal-completion risk dominates: the current price is underpinned by the Paramount transaction; remaining regulatory clearances (EU, FCC, UK and others) still stand between the deal and closing, and a break would likely push shares toward standalone value.
- Linear television is in secular decline: Global Linear Networks revenue fell 12% and adjusted EBITDA fell 21% in 2025 amid cord-cutting and the loss of NBA rights.
- Heavy debt load: the company still carries roughly $29 billion of net debt and 3.3x net leverage.
- Shrinking top line: total revenue declined ~5% in 2025 and has fallen from the 2023 peak as legacy networks erode faster than streaming grows.
- Volatile GAAP earnings: heavy intangible amortisation and one-off items — such as the $2.8 billion Netflix termination fee booked in Q1 2026 — make reported earnings lumpy and hard to read.
3. Business Segments
From 2025 WBD reports three operating segments. The percentages below are shares of gross segment revenue (before roughly $3.1 billion of inter-segment eliminations that reconcile to the $37.30 billion reported total).
| Segment | % of revenue | What it is |
|---|---|---|
| Global Linear Networks | ~43% | Cable and broadcast networks — CNN, TNT, TBS, Discovery, HGTV, Food Network and more. Cash-generative but in structural decline. FY2025 revenue $17.66bn. |
| Studios | ~31% | Warner Bros. film and television production, games, and the DC and Harry Potter franchises. FY2025 revenue $12.62bn. |
| Streaming | ~26% | Direct-to-consumer streaming led by HBO Max; 131.6 million global subscribers. FY2025 revenue $10.88bn. |
4. Business Model
Warner Bros. Discovery monetises content across three routes: subscriptions, advertising and content licensing/theatrical.
How it makes money. By revenue type, FY2025 split into Distribution ($19.3 billion — affiliate fees and streaming subscriptions), Advertising ($7.3 billion — linear and streaming ad sales), Content ($9.6 billion — theatrical box office, TV licensing and games) and Other ($1.1 billion). Distribution is the largest and most recurring pillar; content is the most volatile, swinging with the film slate.
Unit economics and moat. The moat is a deep library of owned intellectual property — DC, Harry Potter, Game of Thrones, Warner Bros.' film catalogue and Discovery's unscripted brands — that can be re-monetised across streaming, licensing and theatrical. The strategic challenge is managing the decline of high-margin linear networks while scaling lower-margin streaming into sustained profitability.
Capital allocation. WBD pays no dividend and has directed free cash flow toward debt reduction. Originally the company planned to split into two listed companies (streaming/studios and global networks) in 2026; that plan was superseded by the agreed sale to Paramount Skydance.
5. Financial Health
The five-year record is distorted by the April 2022 merger: 2021 reflects Discovery on a standalone basis, so the 2022 jump is not organic growth. Since the 2023 peak, revenue has declined as linear networks shrink. WBD returned to a full-year GAAP profit in 2025 for the first time since the merger. All figures are from company earnings releases and SEC filings.
| Year | Revenue | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| 2021 | $12.19bn | — | $1.54 | n/a | Nil | — |
| 2022 | $33.82bn | n/m (merger) | $(3.82) | n/a | Nil | $49.0bn |
| 2023 | $41.32bn | +22.2% | $(1.28) | n/a | Nil | $43.7bn |
| 2024 | $39.32bn | −4.8% | $(4.62) | n/a | Nil | $39.5bn |
| 2025 | $37.30bn | −5.2% | $0.29 | n/a | Nil | $32.6bn |
WBD does not report a separate adjusted EPS; management guides to Adjusted EBITDA, which was $8.74 billion in FY2025 (versus $9.03 billion in FY2024). Long-term debt shown is the year-end noncurrent balance; the 2021 figure is omitted because that year predates the merger (Discovery standalone). Net debt at end-2025 was ~$29.0 billion (3.3x net leverage).
| Quarter | Revenue | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q1 2026 | $8.89bn | n/a | $(1.17) |
| Q4 2025 | $9.46bn | n/a | $(0.10) |
| Q3 2025 | $9.05bn | n/a | $(0.06) |
| Q2 2025 | $9.81bn | n/a | $0.63 |
| FY2025 total | $37.30bn | n/a | $0.29 |
The Q1 2026 GAAP loss of $1.17 per share includes the $2.8 billion termination fee paid to Netflix. WBD reports Adjusted EBITDA rather than an adjusted EPS metric.
6. Valuation
Raw metrics, July 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$67bn (~2.51bn shares × $26.78, 10 Jul 2026) |
| Enterprise value | ~$96bn (market cap $67bn + total debt $33.5bn − cash $4.6bn); the Paramount offer implies ~$110bn EV at $31/share |
| Trailing P/E (GAAP) | n/m — TTM GAAP is a loss after the $2.8bn Q1 2026 Netflix termination fee; FY2025 EPS $0.29 implies ~92x, not meaningful |
| P/E (forward) | n/a — pending all-cash acquisition; company does not guide EPS |
| P/S (TTM) | ~1.8x (market cap $67bn / TTM revenue ~$37bn) |
| P/FCF | ~22x (market cap $67bn / FY2025 FCF $3.09bn; FCF = operating CF $4.32bn − capex $1.23bn) |
| EV/EBITDA (TTM) | ~11x (EV $96bn / FY2025 adjusted EBITDA $8.74bn); ~15x on GAAP EBITDA |
| 52-week high | $30.00 |
| 52-week low | $10.76 |
| Short interest (% of float) | ~2.5% |
| Days to cover | ~3.2 |
7. What Are They Building
For most of 2025 the story was WBD's "three-pillar" strategy — scaling streaming, revitalising Warner Bros. Studios, and optimising the linear networks — leading toward a planned 2026 split into two independent public companies: Warner Bros. (Streaming & Studios, to be led by David Zaslav) and Discovery Global (Global Linear Networks, to be led by CFO Gunnar Wiedenfels).
That plan was overtaken by events. After David Ellison's Paramount Skydance pursued the company through 2025 and into 2026, WBD's board ran a sale process and agreed to be acquired outright. The near-term "build" is therefore the combination with Paramount Skydance — folding HBO Max, Warner Bros. Studios and the linear networks into a larger media group — while WBD continues to expand HBO Max internationally, deliver its film and television slate, and manage the wind-down of legacy linear economics. If the deal were to fail, the standalone split path could re-emerge.
8. Competitive Landscape
WBD competes across streaming, studios and linear television against the largest media and technology companies. Its acquirer, Paramount Skydance, is itself a direct peer. Market caps below are approximate and as of July 2026.
| Peer | Market cap (Jul 2026) | Key 2025 metric |
|---|---|---|
| Netflix (NFLX) | ~$500bn | FY2025 revenue ~$44bn; global streaming leader |
| Walt Disney (DIS) | ~$195bn | FY2025 revenue ~$94bn; diversified media and parks |
| Comcast / NBCUniversal (CMCSA) | ~$120bn | FY2025 revenue ~$124bn; cable, broadband and studios |
| Paramount Skydance (PSKY) | ~$30bn | Acquirer of WBD; Paramount+ streaming and CBS networks |
9. Leadership & Ownership
Warner Bros. Discovery is led by President & CEO David Zaslav, who ran Discovery before the 2022 merger and would lead the streaming-and-studios business under the earlier split plan. CFO Gunnar Wiedenfels was slated to lead the linear-networks company. Recent insider activity has centred on routine annual board equity grants dated 9 June 2026 rather than open-market conviction trades.
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Kenneth W. Lowe (Director) | 09 Jun 2026 | Grant (award) | 9,067 | $0.00 | $0 | Annual board equity award |
| Joseph Levin (Director) | 09 Jun 2026 | Grant (award) | 9,067 | $0.00 | $0 | Annual board equity award |
| Fazal F. Merchant (Director) | 09 Jun 2026 | Grant (award) | 9,067 | $0.00 | $0 | Annual board equity award |
| Anthony Noto (Director) | 09 Jun 2026 | Grant (award) | 9,067 | $0.00 | $0 | Annual board equity award |
10. Key Risks
- Deal completion (Regulatory): the current share price is underpinned by the Paramount Skydance acquisition; outstanding clearances (EU, FCC, UK and others) remain, and a collapse of the deal would be materially adverse and is imminent given the Q3 2026 target.
- Linear decline (Operational): Global Linear Networks revenue fell 12% and adjusted EBITDA 21% in 2025 amid cord-cutting and the loss of NBA rights.
- Leverage (Financial): ~$29 billion of net debt and 3.3x net leverage constrain flexibility if cash flows weaken.
- Content volatility (Operational): studio results swing sharply with the performance of the theatrical and television slate.
- Streaming competition (Operational): HBO Max faces intense competition from Netflix, Disney+, Amazon and others for subscribers and content spend.
- Advertising cyclicality (Macro): both linear and streaming advertising revenue are exposed to the economic cycle.
- Earnings volatility (Financial): heavy intangible amortisation and one-off items make GAAP earnings lumpy and difficult to interpret.
11. Recent Developments
- 13 Jun 2026 — US DOJ clears the Paramount Skydance acquisition. The Department of Justice approved the ~$111 billion takeover, removing a key US antitrust hurdle; other regulators (EU, FCC, UK) continued their reviews.
- 06 May 2026 — Q1 2026 results. Revenue was $8.9 billion; the company reported a $2.9 billion net loss, which included the $2.8 billion termination fee paid to Netflix, while the streaming segment stayed profitable.
- 23 Apr 2026 — Shareholders approve the Paramount Skydance merger. WBD stockholders overwhelmingly voted in favour of the $31.00-per-share all-cash sale.
- 27 Feb 2026 — Definitive merger agreement signed. WBD agreed to be acquired by Paramount Skydance for $31.00 per share in cash (~$81 billion equity, ~$110 billion enterprise value), with a $0.25-per-share quarterly "ticking fee" accruing if closing runs past 30 September 2026.
- 26 Feb 2026 — Q4 and full-year 2025 results. Full-year revenue was $37.3 billion with net income of $727 million — the first annual profit since the merger — and adjusted EBITDA of $8.7 billion.
12. Key Dates
- 07 Aug 2026 — Q2 2026 financial results (before market open)
- Expected Q3 2026 — targeted closing of the Paramount Skydance acquisition, subject to remaining regulatory clearances
- 30 Sep 2026 — date after which a $0.25-per-share quarterly "ticking fee" begins accruing to WBD shareholders if the deal has not closed
For more tools, see the ChartsView Live Charts, Economic Calendar and community Forum.
Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.