Warner Bros. Discovery (WBD) shared its fourth-quarter results for 2025, revealing a revenue of $9.46 billion and a total of 131.6 million streaming subscribers. However, the company faced a loss of $252 million during this quarter. Adjusted EBITDA stood at $2.216 billion.
Revenue fell by 6% compared to the same period last year, which might satisfy Wall Street expectations, but ongoing losses raise concerns about profitability.
Streaming subscribers grew by 3.5 million between October and December. Yet, advertising revenue declined by 9%, largely due to the loss of NBA broadcast rights. Studio revenues also dipped by 13%, primarily from reduced content sales, while revenue from linear networks dropped 12%.
Just last quarter, WBD reported a net loss of $148 million on $9 billion in revenue. This was a very different environment, especially with talks of Netflix’s interest in WBD and Paramount’s transformation plans.
In December, Warner Bros. accepted an acquisition proposal from Netflix worth $83 billion, pending a split from Discovery. Netflix is focused on acquiring Warner Bros. studios and streaming services, which includes HBO. Meanwhile, Paramount is pushing back, aiming for a more comprehensive deal that encompasses both Warner Bros. and Discovery.
This split could draw parallels to NBCUniversal’s strategy, potentially leading to a standalone Discovery. Should this happen, David Zaslav would lead Warner Bros. and CFO Gunnar Wiedenfels would oversee Discovery.
In a letter to shareholders, WBD hinted at the ongoing acquisition talks but opted not to engage further during their earnings call.
Despite the challenges, the streaming industry continues to evolve. According to recent surveys, nearly 70% of households in the U.S. now subscribe to at least one streaming service, underscoring the intense competition in the market.
For more on WBD’s results and analysis, you can check the official reports here.
Source link
david zaslav,Netflix,Paramount,Warner Bros. Discovery
