Skydance dokončila akvizici společnosti Warner Bros. Discovery za zhruba 78 miliard USD; akcionáři WBD obdrží asi 31,02 USD za akcii a akcie společnosti budou staženy z burzy Nasdaq.
What happened Warner Bros. Discovery, Inc. (NASDAQ: WBD) said Skydance Corporation completed its acquisition on October 6, 2026. Merger Sub merged with and into WBD, and WBD survived as a wholly owned subsidiary of Skydance Corporation. Each share of WBD Common Stock was canceled and converted into about $31.02 in cash, without interest.
WBD said the deal's total consideration is about $78 billion, funded by equity and debt financing. The company also said WBD Common Stock will no longer be listed on Nasdaq and that it plans to file Form 25 and later Form 15.
On October 2, 2026, the board ratified 396,804 RSUs granted after the plan expired and 120,000 shares issued in settlement of some 2025 grants. The board said the grants were approved by the Compensation Committee before grant and then ratified under Section 204 of the DGCL. Key numbers Metric Latest Change Source Aggregate deal consideration about $78 billion SEC 8-K Cash paid per share of WBD Common Stock about $31.02 a share SEC 8-K Aggregate Ticking Consideration about $41.89 million SEC 8-K RSUs granted after the plan expired 396,804 RSUs Exhibit 99.1 Shares issued in settlement of 2025 grants 120,000 shares Exhibit 99.1 Read more: Warner Bros. Discovery (WBD) stock analysis and investment case
Why it matters OptimistFi's case had been that WBD was a levered cash-harvest and streaming-transition bet. This filing weakens that case because WBD is now a wholly owned subsidiary of Skydance Corporation and holders of WBD Common Stock now have only a right to receive cash. The extra cash tied to the closing date was about $41.89 million, about 0.05% of the roughly $78 billion deal value.
That makes the final price bump small next to the deal value. The ratified RSU grants and share issuances look like cleanup around legacy compensation, not an operating signal. For holders, the main change is the shift from listed equity to a cash claim. The closing notice is best read as control change and cleanup around legacy awards.
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What's next After the Form 25s become effective, WBD plans to file Form 15 to end registration of WBD Common Stock and the Euro Notes. That would suspend reporting obligations under Sections 13 and 15(d) of the Exchange Act.
The transaction bonuses approved for Mr. Wiedenfels, Mr. Campbell and Mr. Perrette are $2.14 million, $2.95 million and $2.85 million, payable no later than 60 days after the deal closes. Mr. Wiedenfels, Mr. Campbell and Ms. Aiyar are set to leave employment on October 16, 2026. Any challenge to the ratification must be brought within 120 days from October 6, 2026.
More from OptimistFi WBD stock: the Warner Bros. Discovery thesis, its status and the next test to watch United States Brent Oil Fund, LP (NYSE Arca: BNO) Tracks a Supply Gap Alpha Teknova, Inc. (NASDAQ: TKNO) Adds Regulatory Support for PluriFreeze Meta Platforms, Inc. (NASDAQ: META) Has a Conditional $18 Billion Bill Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC 8-K — Current report announcing completion of the acquisition, delisting steps, and deal consideration. Exhibit 99.1 — Statutory notice ratifying 396,804 RSUs and 120,000 shares issued under the director plan. Read the full OptimistFi thesis on Warner Bros. Discovery, Inc.: https://optimistfi.com/stocks/WBD
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Paramount Skydance a Warner Bros. Discovery uzavřely žalobu, která blokovala jejich fúzi. Dohoda odstraňuje poslední velkou překážku a transakce míří k dokončení do konce měsíce.
Shares in both Paramount Skydance and Warner Bros. Discovery have received a significant boost over the past 24 hours after multiple states agreed to settle a lawsuit seeking to block the merger between the two Hollywood giants.
The now-settled suit was the last major hurdle to Paramount’s takeover of Warner Bros. Discovery, which is now on track to close by the end of the month. Here’s what you need to know.
What’s happened?Yesterday, California Attorney General Rob Bonta announced that his office, along with the AGs of eleven other states, had agreed to settle their antitrust lawsuit seeking to block the merger between Paramount Skydance and Warner Bros. Discovery (WBD).
As Fast Company reported in July, the lawsuit was brought by 12 states over fears that the merger would lead to fewer films produced each year, less competition, and more control by mega corporations over the types of content and editorial coverage that Americans see—particularly on cable TV.
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The lawsuit, led by California Attorney General Rob Bonta, sought to block the merger on these and other grounds.
Now, however, Paramount, Warner Bros. Discovery, and the 12 states involved have settled the lawsuit.
Paramount Skydance is controlled by tech billionaire Larry Ellison and his son David Ellison, who is also CEO.
Warner Bros. Discovery, Inc. (NASDAQ:WBD – Get Free Report) insider Amy Girdwood sold 262,285 shares of the stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $27.98, for a total transaction of $7,338,734.30. Following the sale, the insider directly owned 539,374 shares of the company’s stock, valued at $15,091,684.52. This represents a 32.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website.
Shares of NASDAQ WBD opened at $28.04 on Friday. The company has a market capitalization of $70.40 billion, a P/E ratio of -22.08 and a beta of 1.57. Warner Bros. Discovery, Inc. has a 52-week low of $17.08 and a 52-week high of $30.00. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.78 and a current ratio of 0.78. The company’s 50 day moving average price is $27.23 and its 200-day moving average price is $27.24.
Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.14) by $0.20. Warner Bros. Discovery had a negative net margin of 8.77% and a negative return on equity of 8.91%. The company had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $9.25 billion. During the same period in the prior year, the company posted $0.63 earnings per share. Warner Bros. Discovery’s revenue for the quarter was down 11.2% compared to the same quarter last year. Equities analysts forecast that Warner Bros. Discovery, Inc. will post -1.08 earnings per share for the current year.
Wall Street Analysts Forecast Growth Several research firms have recently weighed in on WBD. Freedom Capital raised Warner Bros. Discovery from a “hold” rating to a “strong-buy” rating in a research report on Monday, August 10th. Weiss Ratings upgraded Warner Bros. Discovery from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Tuesday, August 18th. Seaport Research Partners cut Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research note on Monday, July 27th. Huber Research upgraded Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a report on Monday, June 1st. Finally, Zacks Research raised Warner Bros. Discovery from a “strong sell” rating to a “hold” rating in a research note on Tuesday, August 25th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $27.69. View Our Latest Research Report on Warner Bros. Discovery
Hedge Funds Weigh In On Warner Bros. Discovery Institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System lifted its stake in shares of Warner Bros. Discovery by 2,593.6% in the second quarter. California State Teachers Retirement System now owns 96,581,582 shares of the company’s stock valued at $2,574,865,000 after buying an additional 92,996,028 shares in the last quarter. Norges Bank bought a new position in Warner Bros. Discovery in the 4th quarter valued at about $1,123,807,000. Bank of New York Mellon Corp acquired a new position in Warner Bros. Discovery during the 2nd quarter valued at about $338,263,000. Hsbc Holdings PLC increased its holdings in Warner Bros. Discovery by 131.3% during the 2nd quarter. Hsbc Holdings PLC now owns 13,829,848 shares of the company’s stock worth $369,800,000 after purchasing an additional 7,851,800 shares in the last quarter. Finally, Duquesne Family Office LLC purchased a new stake in shares of Warner Bros. Discovery in the second quarter worth approximately $74,916,000. Institutional investors and hedge funds own 59.95% of the company’s stock.
Key Stories Impacting Warner Bros. Discovery Here are the key news stories impacting Warner Bros. Discovery this week:
Positive Sentiment: Paramount is reportedly preparing to meet with state attorneys general in late October to discuss settlement terms related to its proposed acquisition of Warner Bros. Discovery. Paramount CEO David Ellison is also considering strategies to secure clearance in California. Progress toward resolving antitrust concerns could improve deal certainty and support WBD’s valuation. Paramount settlement talks article Paramount California clearance article Neutral Sentiment: The proposed transaction remains the dominant catalyst. However, a reported $7 million daily ticking fee is approaching, increasing the financial stakes if closing is delayed. Investors are likely focused on whether regulatory negotiations can prevent additional costs and keep the deal on schedule. Neutral Sentiment: Warner Bros. Discovery is promoting upcoming television programming and using youth-focused marketing to build interest in the Basketball World Cup. These initiatives may support audience engagement, but they are less material to near-term valuation than the Paramount transaction. Warner Bros. TV programming article Basketball World Cup marketing article Negative Sentiment: Two insiders sold a combined 462,285 shares worth approximately $13.0 million. Director Kenneth Lowe reduced his position by 25.31%, while insider Amy Girdwood cut hers by 32.72%. Although insider sales do not necessarily indicate deteriorating fundamentals, the size of the transactions can weigh on sentiment, particularly while WBD faces regulatory and execution risks. Kenneth Lowe SEC filing Amy Girdwood SEC filing About Warner Bros. Discovery (Get Free Report)
Warner Bros. Discovery, Inc is a global media and entertainment company that develops, produces and distributes television, film and digital content. Its portfolio includes Warner Bros. film and television studios, HBO, CNN, Discovery, TLC, HGTV, Food Network, TNT Sports and other well-known brands.
The company operates streaming services including Max, which features HBO programming, Warner Bros. films, original series and other entertainment content, and discovery+, which focuses on lifestyle, documentary and nonfiction programming.
Further Reading Five stocks we like better than Warner Bros. Discovery Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Optical Cable Corporation Is Starting to Get the Market’s Attention Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Is Nike’s Index Demotion a Warning or a Buying Opportunity?
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Dan Loeb otevřel ve Warner Bros. Discovery novou pozici za 533,2 mil. USD; ve stejném čtvrtletí do ní nakupovali i David Einhorn a George Soros. WBD zároveň čeká na dokončení prodeje společnosti Paramount Skydance.
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Third Point’s Dan Loeb opened a brand new stake of 20,000,000 shares of Warner Bros. Discovery (NASDAQ:WBD | WBD Price Prediction), valued at $533,200,000, according to the fund’s Q2 2026 13F disclosure. It was the single largest new position Loeb established in the quarter, built from zero. Two other prominent managers joined him. In the same three-month window, David Einhorn’s Greenlight Capital and George Soros’s Soros Fund Management were also buyers of Warner Bros. Discovery. Positions are dated as of June 30, 2026 and were filed August 13-14, 2026.
That’s an unusual alignment. Activist, value, and macro schools rarely converge on the same media stock in the same quarter. Warner Bros Discovery is far from a widely held Magnificent 7 stock. Let’s see why some of the biggest names in investing are all piling in.
What Each Manager Did Dan Loeb / Third Point. New position: 20,000,000 shares valued at $533,200,000. Built from zero and Loeb’s largest new bet of the quarter.
David Einhorn / Greenlight Capital. New position: 2,246,180 shares valued at $59,883,158. Also built from zero.
George Soros / Soros Fund Management. Added 396,080 shares to reach 1,488,690 shares, valued $39,688,475.
13F filings disclose long US-listed equity positions only and never state rationale. They’re a snapshot of what funds held on June 30th, so positions could have moved since then.
What’s Actually Happening at WBD WBD sits at the center of the biggest corporate reshuffling in media. The board initiated a review of strategic alternatives and later agreed to a sale to Paramount Skydance. Management said on the Q2 call, “We remain confident that our agreed upon sale to Paramount Skydance will be completed.” The closing is on hold until the earlier of five days after legal proceedings complete or June 1, 2027. A December 2025 Netflix(Nasdaq: NFLX) bid was terminated, with a $2.80 billion Netflix termination fee paid in Q1 2026.
The operating picture is mixed but improving where it counts. Q2 2026 streaming revenue crossed $3 billion for the first time, with Adjusted EBITDA of $512 million and a margin near 17%. GAAP EPS came in at $0.06 versus a consensus of -$0.10. Revenue of $8.72 billion missed by 5.39%, dragged by a 39% ex-FX drop in Studios and NBA-rights loss. Net leverage sits at 3.4x with $29.7 billion net debt. Market cap is roughly $70.17 billion.
The forward slate is loaded: Harry Potter series premiering on HBO Max Christmas Day 2026, plus 2027 tentpoles including a new Batman, Man of Tomorrow, and Lord of the Rings: The Hunt for Gollum. Management is targeting 150 million streaming subscribers by year-end 2026 and a long-term 20%+ streaming Adjusted EBITDA margin.
The Bull Case and the Risks The setup offers multiple structural paths: deal close at a premium, standalone separation, or continued streaming inflection. Shares are up 137.61% over the past year, though still down 2.88% year-to-date at $27.99. The analyst target sits at $29.82.
Then there are the risks. Merger completion is uncertain into mid-2027, domestic linear pay TV subs are declining 10%, and separation costs run roughly $350 million quarterly. Gross debt is $33.1 billion.
The Take Three elite managers buying the same media name in one quarter is a signal worth studying, not a trade to copy blindly. Remember what a 13F is: a 45-day-old snapshot of long US equity positions. Prices have moved since June 30, and none of these managers has explained why they bought. The filings show conviction. The thesis is up to the investor to build.
Contact [email protected] for any questions or corrections.
Warner Bros. Discovery ve 2. čtvrtletí překonala odhad zisku, když EPS činil 6 centů, ale tržby klesly o 11,2 % na 8,72 miliardy USD kvůli slabosti studií.
Key Takeaways Warner Bros. Discovery's Q2 earnings beat estimates, while revenues fell 11.2% on Studios weakness.Streaming revenues rose 10% ex-forex, while Adjusted EBITDA jumped 63% to $512 million.Studios revenues fell 39% ex-forex, while Global Linear Networks revenues declined 17%. Warner Bros. Discovery, Inc. (WBD - Free Report) stock gained 1.7% following its Aug. 6, 2026, earnings release against the Zacks Broadcast Radio and Television industry’s 2.4% fall.
The company reported second-quarter 2026 earnings of 6 cents per share, down 90.5% from 63 cents year over year but beating the Zacks Consensus Estimate of a loss of 13 cents.
Revenues fell 11.2% year over year to $8.72 billion and missed the consensus mark by 6.19%. The top-line decline reflected sharp weakness in Studios and Global Linear Networks. Streaming was the bright spot, with revenues rising 10% ex-forex and Adjusted EBITDA up 63% ex-forex.
WBD's Revenue Mix Shows Broad Top-Line PressureDuring the quarter, Distribution revenues increased 1% ex-forex to $4.95 billion, supported by global streaming growth but partly offset by domestic linear pay-TV subscriber declines and the HBO Max domestic distribution renewal with a former related party.
Advertising revenues fell 22% ex-forex to $1.72 billion, while content revenues declined 26% to $1.83 billion. The absence of the NBA weighed on advertising, while lower theatrical revenues in the Studios segment drove the content decline.
Warner Bros. Discovery's Streaming Momentum BuildsStreaming revenues increased 10% ex-forex to $3.08 billion. Distribution revenues grew 11% ex-forex, while advertising revenues advanced 8% as global ad-lite subscribers increased. Subscriber-related revenues rose 10% ex-forex to $3.00 billion.
Streaming Adjusted EBITDA climbed to $512 million from $293 million, producing a nearly 17% margin. About 40% of global HBO Max subscribers were on the ad-supported tier at quarter-end, an 11% increase year over year. International streaming advertising revenues jumped 73% ex-forex following HBO Max launches in Germany, Italy, the U.K. and Ireland.
WBD's Studios Results Sink on Tough ComparisonsStudios revenues declined 39% ex-forex to $2.33 billion. Content revenues fell 41%, with theatrical revenues down 46% against the prior-year strength of A Minecraft Movie, Sinners and Final Destination Bloodlines. TV revenues decreased 45% on lower intercompany content licensing.
Games revenues increased 45% ex-forex following the release of LEGO Batman: Legacy of the Dark Knight. Studios Adjusted EBITDA declined 89% ex-forex to $96 million, while operating expenses decreased 24% ex-forex. Management continues to expect the segment to generate more than $3 billion of Adjusted EBITDA in the medium to long term.
Warner Bros. Discovery's Linear Networks ContractGlobal Linear Networks revenues fell 17% ex-forex to $3.99 billion. Distribution revenues declined 9%, mainly because domestic linear pay-TV subscribers fell 10%, while domestic affiliate rates increased 1%.
Advertising revenues dropped 27% ex-forex, reflecting 17% domestic audience declines and the absence of the NBA. Global Linear Networks Adjusted EBITDA decreased 5% ex-forex to $1.45 billion despite a 23% reduction in operating expenses. WBD still expects high-single-digit operating expense improvement for the segment in 2026.
WBD's Balance Sheet & Cash FlowWBD ended the second quarter with $3.37 billion of cash and cash equivalents, $33.06 billion of gross debt and $29.69 billion of net debt. Net leverage was 3.4x. The company refinanced its $15 billion bridge facility with $13 billion and €1.7 billion term loans and expects about 150 basis points of annual interest-cost savings versus the original bridge structure.
Cash provided by operating activities totaled $848 million, while free cash flow fell 19% year over year to $572 million. Free cash flow absorbed roughly $350 million of separation and transaction-related items.
Warner Bros. Discovery Sees Streaming Growth AheadManagement expects subscriber-related revenue growth to accelerate further in the second half of 2026 and remain healthy into 2027. The company reiterated its long-term Streaming Adjusted EBITDA margin target of more than 20%, while noting that fourth-quarter marketing around Harry Potter could cause quarterly margin volatility.
The second half also includes the planned HBO Max premiere of Harry Potter on Christmas Day. Warner Bros. Discovery remains confident that its pending merger with Paramount Skydance Corporation will be completed, with closing on hold until the earlier of five days after legal proceedings are complete or June 1, 2027.
Warner Bros. Discovery zveřejnila výsledky za 2. čtvrtletí 2026 a uvedla, že prezentace zahrnuje i informace o navrhované transakci mezi Warner Bros. Discovery a Paramount Skydance.
Warner Bros. Discovery, Inc. (WBD) Q2 2026 Earnings Call August 6, 2026 8:00 AM EDT
Company Participants
Peter Lee - Senior Vice President of Investor Relations
David Zaslav - President, CEO & Director
Jean-Briac Perrette - President and CEO of Global Streaming & Games
Gunnar Wiedenfels - Senior EVP & CFO
Conference Call Participants
Steven Cahall - Wells Fargo Securities, LLC, Research Division
Richard Greenfield - LightShed Partners, LLC
Sean Diffley - Morgan Stanley, Research Division
Jessica Reif Cohen - BofA Securities, Research Division
Presentation
Operator
Ladies and gentlemen, welcome to the Warner Bros. Discovery Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Additionally, please be advised that today's conference call is being recorded. I would like to hand the conference over to Mr. Peter Lee, Senior Vice President, Investor Relations. You may begin.
Peter Lee
Senior Vice President of Investor Relations
Good morning, and thank you for joining us for our Q2 2026 earnings call. Joining me today from Warner Bros. Discovery's management is David Zaslav, President and Chief Executive Officer; Gunnar Wiedenfels, our Chief Financial Officer; and JB Perrette, CEO and President, Global Streaming and Games. This morning, we issued our earnings release, shareholder letter and trending schedule, and these materials can be found on our website at ir.wbd.com.
Today's presentation will include forward-looking statements that we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements about the benefits of the proposed transaction between Warner Bros. Discovery and Paramount Skydance, future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts.
Such statements are based upon the current beliefs and expectations of WBD's management and are subject to significant risks and uncertainties outside of our control that could cause
, /PRNewswire/ -- Warner Bros. Discovery, Inc. (the "Company") (Nasdaq: WBD) today reported financial results for the quarter ended June 30, 2026. Please visit the "Investor Relations" section of the Company's website at https://ir.wbd.com/ to view the earnings materials.
The Company will conduct a conference call today at 8:00 a.m. ET to discuss the results. A link to the live webcast of the conference call will be available in the "Investor Relations" section of the Company's website at https://ir.wbd.com/.
A replay of the audio webcast will be available in the "Investor Relations" section of the Company's website for twelve months.
About Warner Bros. Discovery:
Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of branded content across television, film, streaming and gaming. Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, HBO Max, discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, Animal Planet, Science Channel, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Pictures Animation, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more information, please visit www.wbd.com.
Warner Bros. Discovery čeká ve 2. čtvrtletí 2026 tržby 9,29 miliardy USD a ztrátu 13 centů na akcii. Chybějící práva na NBA mohou snížit reklamní tržby ve streamingu o 16 % a v lineárních sítích o 20 % ex-FX.
Key Takeaways WBD is expected to post Q2 revenues of $9.29 billion and a loss of 13 cents per share.NBA rights losses may cut streaming ad revenues 16% and linear-network ad revenues 20% ex-FX.HBO Max's premium slate may boost engagement, retention and subscriber-related revenues. Warner Bros. Discovery (WBD - Free Report) is slated to report second-quarter 2026 earnings on Aug. 6.
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $9.29 billion, suggesting a 5.3% year-over-year decline.
The consensus mark for the second-quarter bottom line is currently pegged at a loss of 13 cents per share, widened by a penny over the past 30 days. This also marks a sharp decline from the year-ago quarter's earnings of 63 cents per share.
In the last reported quarter, Warner Bros. Discovery delivered a negative earnings surprise of 1,070%. The company’s earnings beat the Zacks Consensus Estimate once in the trailing four quarters and missed the same in the remaining three, with an average negative surprise of 306.56%.
Let’s see how things have shaped up for WBD before the announcement.
What Investors Should Watch Ahead of WBD's Q2 ResultsWarner Bros. Discovery is expected to face a meaningful advertising headwind in the second quarter of 2026 due to the absence of NBA broadcasting rights. Management indicated that the loss of NBA programming will create a 16% ex-FX headwind to Streaming advertising revenues and a 20% ex-FX negative impact to Global Linear Networks advertising revenues in the quarter under review. While certain sports events will provide partial offsets, the NBA has historically been one of WBD's largest advertising drivers, making its absence likely to have pressured year-over-year advertising growth and overall revenue performance.
The company's Global Linear Networks business continues to face structural pressure from declining pay-TV subscriptions. In the first quarter, domestic linear pay-TV subscribers fell roughly 10%, contributing to weaker distribution revenues. Warner Bros. Discovery indicated that underlying domestic delivery trends in the second quarter would remain broadly similar to the prior quarter, suggesting these secular declines are likely to continue weighing on affiliate-fee growth, advertising revenues and network profitability during the quarter under review.
The company continues to incur restructuring, separation and transaction-related expenses as it progresses toward its planned merger with Paramount Skydance. WBD anticipates additional cash expenses related to the transaction even before the deal is finalized; this means that, despite improvements in core business operations, these expenses are likely to continue weighing on the company's reported earnings and free cash flow in the quarter to be reported.
Offsetting these headwinds, WBD entered the second quarter with a compelling HBO Max content lineup, including the successful return of Euphoria, continued momentum from The Pitt and the June release of House of the Dragon Season 3. The company also highlighted an attractive pipeline featuring Stuart Fails to Save the Universe, Lanterns and Harry Potter and the Philosopher's Stone extending into the second half of the year. This steady flow of premium content is designed to boost viewer engagement, improve retention and attract new subscribers, supporting higher subscriber-related revenues. As a result, the streaming business is expected to have benefited from stronger user activity and monetization in the quarter under review.
What Our Model Says About WBD StockOur proven model does not conclusively predict an earnings beat for WBD this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you can see below.
WBD currently has an Earnings ESP of -85.14% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some companies worth considering, as our model shows that they have the right combination of elements to beat on earnings in their upcoming releases:
Versant Media Group, Inc. (VSNT - Free Report) currently has an Earnings ESP of +6.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
VSNT shares have gained 23.7% in the past six months. VSNT is set to report second-quarter 2026 results on Aug. 6.
Corsair Gaming (CRSR - Free Report) currently has an Earnings ESP of +9.09% and a Zacks Rank #2.
CRSR shares have surged 127.8% in the past six months. CRSR is slated to report second-quarter 2026 results on Aug. 6.
Six Flags Entertainment Corporation (FUN - Free Report) currently has an Earnings ESP of +6.90% and a Zacks Rank #3.
FUN shares have returned 1.6% in the past six months. FUN is set to report its second-quarter 2026 results on Aug. 6.
Plánované převzetí Warner Bros. Discovery společností Paramount je po žalobě kalifornského generálního prokurátora na měsíce pozastavené. Ellisonovi dál usilují o dohodu, ale státy chtějí spíš strukturální než behaviorální ústupky.
The Ellisons may still get Warner Bros. But it won't be easy.
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Chief Correspondent covering media and technology
Larry Ellison backed the deal that let his son David buy Paramount this year. They were set to acquire Warner Bros. Discovery in the coming weeks — but a court challenge from the state of California means all bets are off. Eric Charbonneau/Getty Images for The Hollywood Reporter Up until last week, just about everyone in Hollywood and Wall Street believed that Larry and David Ellison's Paramount was going to own Warner Bros. Discovery in the near future.
Now an antitrust lawsuit brought by California's attorney general and other state AGs has thrown that into doubt. The Paramount-WBD deal is on hold for months, or maybe more, while the case works its way through the legal system.
There is a lot of spin and posturing around this one, with good reason: There's a lot of uncertainty about whether the Ellisons will eventually get what they want.
I asked Bloomberg's Lucas Shaw, the well-sourced reporter who has been covering the ins and outs of the deal for nearly a year, to walk me through what happens next: Could this get settled before a court verdict, and what would that look like? How might this November's election results affect all of this? And what does this mean for Netflix, which was going to buy WBD before it walked away?
You can hear my entire conversation with Lucas, which also tackles Netflix's growth and engagement issues, and the very mixed state of Hollywood's theatrical business, in my Channels podcast.
The following is an edited excerpt of our conversation:
Peter Kafka: What are the odds that this lawsuit gets settled before a verdict? That the Ellisons just say to the states, "Look, we'll give you something. It's more than we wanted to give you." And then the states say, "OK, this deal can go through."
Lucas Shaw: People thought that they would likely find some settlement before this trial started. That was the prevailing wisdom: That the states were fighting the deal because the Trump DOJ was not. And that they were unlikely to win or actually block the deal, but that they could garner some concessions.
The last month has really damaged the conventional wisdom. A lot of people, myself included, have realized that maybe they underestimated the forces fighting against the deal.
I was in that group too. I thought well, the Ellisons are gonna get this done one way or another. Some combination of brute force and maybe political favors. They really want it, and they are willing to spend an enormous amount of money.
They were willing to outbid Netflix, a much larger, much wealthier company. They spent months fighting the [Netflix-WBD deal], which at the time seemed like spoiled grapes. But they ended up playing a very canny political game, applying a lot of pressure on both Netflix and Warner Bros., to eventually get it.
And while I thought that the states were going to fight against the deal, I assumed that eventually the Ellisons would prevail, which of course, they may still.
In terms of what they could offer: One of the reasons why a settlement may prove difficult — and of course this is all posturing and bargaining, so maybe it's easier than we think — is that the Ellisons have been offering behavioral remedies. And the states are saying behavioral remedies don't really work.
They want structural remedies. So that would mean Paramount and Warner Brothers agreeing to sell things or divest things as part of this deal. There are assets that Paramount and Warner Brothers could divest, and it wouldn't really hurt the combined company that much. But they have not shown a willingness to get rid of things.
Democrats could take back all or part of Congress in November. Is that a worry for Paramount?
Yes, but a small one. There was never a lot that legislators could do about this deal. But especially now that the federal government has blessed it, we're really in the realm of the courts. I guess it could go to the Supreme Court.
A Democrat-controlled House will be annoying [for the Ellisons], especially given the belief that David Ellison and the current leadership of Paramount has made changes to CBS News that have made them more friendly to the Trump administration. And they're going to get CNN as part of this.
So there will be a lot of scrutiny of whatever happens with the news organizations. But that is separate from the deal itself.
What does Netflix think about this? Do they think there's now an opportunity for them to end up with Warners after all?
I think for now they're just sitting there with a big bucket of popcorn.
Look: If this deal falls apart, would Netflix look at it again? Sure. I interviewed Netflix co-CEO Ted Sarandos after his deal fell apart, and he said something like, "Maybe this'll come around again."
But their investors hated the deal. Their stock price has only continued to go down since then. So the threshold to reengaging on any deal like that would be really high.
And if we're being honest about what's happening with Paramount and the Ellisons — unless there's some dramatic change of heart for David Ellison, he's not giving up on this deal very easily.
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Peter Kafka You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor.
Federální soud pozastavil prodejní transakci Warner Bros. Discovery za 111 miliard USD po žalobě 12 generálních prokurátorů států. Dohoda je nyní dočasně pozastavena do 3. srpna.
Earlier this year, the streaming and entertainment industry witnessed one of its most high-stakes megadeals ever, stunning industry observers. Not only is it historic in its size, but it is also predicted to disrupt Hollywood and the media business as we know it.
After years of Warner Bros. Discovery (WBD) struggling under the weight of billions of dollars in debt, compounded by declining cable viewership and fierce competition from streaming platforms, the company has been considering major strategic changes, including selling its entertainment assets to one of its rivals.
Several major players saw the potential in acquiring the media giant, and in December, Netflix announced it would acquire WBD’s studios and streaming for $82.7 billion.
But in a surprise eleventh-hour move in late February, the David Ellison-run Paramount became the winner of this bidding war, offering $111 billion to acquire all of WBD’s assets, including its studios, HBO, streaming platforms, games, and TV networks such as CNN and HGTV. Paramount was recently acquired by Ellison with significant support from his father, Larry Ellison — the Oracle chairman, world’s sixth-richest person, and major Trump donor.
Paramount’s offer was approved by the U.S. Department of Justice (DOJ) in June. However, a federal judge just paused the deal after a lawsuit was filed on July 13 by a coalition of 12 state attorneys general.
Let’s break down exactly what is happening, what’s at stake, and what could come next.
What has happened so far? This all started back in October when Warner Bros. Discovery revealed it was exploring a potential sale after receiving unsolicited interest from several major players in the industry.
The bidding process quickly became competitive, and Paramount and Comcast emerged as serious contenders, with Paramount initially viewed as the frontrunner.
However, WBD’s board eventually determined that an offer from the streaming giant Netflix was the most attractive. Netflix offered $82.7 billion for just Warner’s film, television, and streaming assets.
Thus began the bidding war. Paramount believed its bid of approximately $108 billion for all of Warner’s assets was superior to Netflix’s offer that focused on just the studios and streaming. To sweeten its deal, Netflix amended its agreement in January to an all-cash offer at $27.75 per share of Warner Bros. Discovery, further reassuring investors and paving the way for the deal to proceed.
Paramount persisted in its attempts to acquire WBD. Still, the Warner board repeatedly rejected its offers, citing concerns about Paramount’s heavy debt load and the increased risk associated with its proposal, including concern over the suite of investors bankrolling Paramount’s bid, which includes Saudi, Qatari, and Abu Dhabi sovereign wealth funds. The board noted that Paramount’s offer would have left the combined company burdened with $87 billion in debt, a risk they were unwilling to take at the time.
In January, Paramount filed a lawsuit seeking more information about the Netflix deal. A month later, the company sought to sweeten its deal by announcing it would offer a $0.25 per share “ticking fee” to WBD shareholders for each quarter the deal fails to close by December 31, 2026. It also said it would pay the $2.8 billion breakup fee if Warner backs out of its deal with Netflix.
Then, in a final attempt to secure a deal, Paramount increased its offer to $31 per share in February. This prompted the WBD board to prolong discussions with Paramount regarding a potential agreement, considering it as a superior offer. Netflix declined to increase its bid and withdrew from the negotiations.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement on February 26. “However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
In addition to the billions Paramount already holds in debt, the company is also set to assume the approximately $33 billion in debt Warner Bros. Discovery holds under the agreement. The deal will be backed by a $54 billion debt commitment from Bank of America, Merrill Lynch, Citi, and Apollo Global Management, as well as $45.7 billion in equity from Larry Ellison.
Regulatory hurdles and other concerns In addition to the assumption of substantial debt posing a significant financial burden, Paramount faces several other hurdles in its deal with WBD that could impact the success of the transaction.
For one, Ellison has warned about significant job reductions that are expected in the near future. There have already been widespread concerns among critics about potential job losses and lower wages.
Ellison is also a controversial figure in the industry, and his ownership of CBS News has been seen as sympathetic and supportive of the administration of Donald Trump, of whom his father, Larry Ellison, is a major donor. Under Ellison’s ownership of Paramount, reporting critical of the administration has been shelved or received increased scrutiny from Ellison or his appointed head of CBS News, the conservative provocateur Bari Weiss.
This has led to some concern among employees at Warner-owned CNN. Trump has personally sought concessions from news divisions critical of him, including a $16 million settlement from CBS, before his FCC would approve the Ellison takeover of Paramount. Before Netflix bowed out of the deal, Trump pressured the company to fire the former Biden White House official Susan Rice from its board. He has publicly stated his intentions to bring CNN to heel under new owners.
Regulatory scrutiny is another hurdle. Such a large-scale merger has attracted attention from lawmakers.
For instance, California attorney general Rob Bonta said in a statement on February 26 that “these two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”
A day before Netflix backed out, it was revealed that a coalition of 11 state attorneys general urged the U.S. Department of Justice to review the merger under concerns it will stifle competition and increase subscription prices. This comes months after U.S. senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal voiced their concerns to the Justice Department’s Antitrust Division, warning that such a massive merger could have serious consequences for consumers and the industry at large. The senators argue that the merger could give the new media giant excessive market power, enabling it to raise prices for consumers and stifle competition.
Despite the DOJ approving the deal in June, a coalition of 12 state attorneys general filed a lawsuit on July 13 to block the merger. The suit argues it would lessen competition and harm movie theaters, cable distributors, and viewers. The coalition is led by Bonta, with Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington also joining.
In response, U.S. District Judge Araceli Martínez-Olguín issued a 14-day pause.
When is the deal expected to close? Paramount initially aimed to finalize its acquisition of WBD as early as July. However, the transaction has now been temporarily paused until August 3, with a hearing set to assess whether the freeze will extend further.
Stay tuned…
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