Warner Bros. Discovery, still the belle of the media M&A ball, reported third-quarter earnings this morning but largely sidestepped speculation about its future. Three film hits in three months buoyed Warner Bros. but TV network advertising tanked, in a mixed showing that only reinforced the logic of a sale or split.
The company last year restructured into two divisions ahead of a later announcement that it would aim to formally separate in 2026. Streaming & Studios profit of $1 billion shot up 58% for the three months ended in September compared with the same period in 2024. Revenue in the unit rose 8% to $5.3 billion. At Global Linear Networks, profit fell 20% to $1.7 billion as revenue tumbled 22% to $3.8 billion. Total revenue declined 16% to $1.4 billion – missing Wall Street forecasts – and swung to a net loss of $148 million. The quarter saw $1.3 billion in restructuring expenses and other items. Adjusted earnings of $2.5 billion climbed 2%.
Superman's global gross of $615 million propelled a 73% surge in theatrical revenue, and WBD CEO David Zaslav noted sequel and spinoff plans as well as other DC tentpoles like Batman 2. Weapons is north of $267 million and The Conjuring: Last Rites has passed $490 million. The studio boom countered a broader 11% domestic box office slump in Q3.>>>HBO Max Ramp-Up
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