Oracle's Larry Ellison quietly pledged shares in two of the world's most closely watched companies as collateral for loans tied to a media empire his son now controls at a steep loss. The full picture of what that means for…
Larry Ellison, co-founder of Oracle (NYSE:ORCL | ORCL Price Prediction), put up shares of Tesla (NASDAQ:TSLA) and SpaceX (NASDAQ:SPCX) as collateral this year. He used them to borrow more from banks and help pay for his son David Ellison’s takeover of Warner Bros. Discovery. The Wall Street Journal reported the pledges on October 20, 2026, citing filings.
The Tesla and SpaceX pledges are reported, and the companies have not confirmed them. No share counts, loan amounts, or lender names have been made public.
Oracle closed at $131.14 on October 20, up 1.16% for the session. Tesla rose 1.54% to $373.71 after Elon Musk commented on a possible SpaceX merger. SpaceX closed at $147.79 and then reached $159.70 after hours on its third-quarter results. Those moves follow earnings and merger news. Nothing in them points to the collateral report.
Why a Falling Stock Can Force a Borrower to Sell
In a stock-backed loan, a bank lends cash against shares. If the shares fall far enough, the borrower has to post more collateral or sell stock.
Billionaires borrow because selling triggers capital gains tax and cuts their voting control. The collateral’s value now moves with three volatile stocks, adding risk. SpaceX just reported, and Tesla reports third-quarter results after the close on October 21.
Oracle’s Proxy Shows a Growing Pledge
As of the September 21 record date, Ellison beneficially owned 1,158,375,174 Oracle shares, or 38.2% of the class. He has pledged 413,000,000 of them, up from 346 million a year earlier.
The 67 million added shares were worth about $9.2 billion at the September 25 close of $137.10. That leaves about 36% of his holdings pledged.
The proxy says “the pledged shares secure personal term loans only used to fund outside personal business ventures.” It does not name Warner Bros.; that link comes from the press report. The board thinks he “has the financial capacity to repay his personal term loans without resorting to the pledged shares.”
What the Borrowed Money Bought at Skydance
The deal closed on October 6, 2026. Warner Bros. Discovery holders received $31.01666668 per share in cash, and $47 billion of new Skydance (NYSE:SKYD) Class B stock was sold at $12.00.
Bloomberg estimated that the Ellisons invested about $17 billion for an estimated 1.4 billion shares. Bloomberg also reported $24 billion committed from three Middle Eastern sovereign wealth funds and $52 billion in added debt.
Skydance closed at $7.10, roughly 41% below that issue price, and is down 57.44% over one year. At current prices, the collateral is backing a stake worth less than what the Ellisons paid for it. Skydance reports results on November 9, 2026.
Why Oracle’s Contract Backlog Matters More Than the Pledge Headlines
Several risks weigh on Oracle. The same Bloomberg data shows Ellison’s fortune almost $200 billion lower over the past year and Oracle’s long-term debt at more than $160 billion. The stock is down 52.06% over one year.
The Tesla and SpaceX pledges can’t be sized. They also sit inside companies valued at $1.48 trillion and $2.01 trillion, so the forced-selling risk is focused at Oracle.
Even so, the business fundamentals look firmer than the pledge headlines suggest. Remaining performance obligations, or committed revenue not yet recognized, reached $664 billion. Management guided fiscal 2027 revenue to at least $90B. Ellison also said in September that he has no other plans to sell Oracle stock.
A Form 4 filing showing Ellison selling Oracle shares would break that view. So would Oracle missing its fiscal second-quarter non-GAAP EPS guidance of $1.85 to $1.93.
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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. A federal judge then paused the deal after a lawsuit was filed on July 13 by a coalition of 12 state attorneys general. However, a judge approved it in late September, with the acquisition finally official as of October 6.
Let’s break down exactly what happened and what could come next.
What has happened so far? This all started back in October 2025 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 faced several other hurdles in its deal with WBD.
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 was another hurdle. Such a large-scale merger 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, 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.
What now? As of October 6, Paramount and Warner Bros. has officially been renamed Skydance, and the new combined corporation will have annual revenue of almost $70 billion.
In terms of its streaming services— Paramount+, HBO Max, and Discovery+,— those are all set to be combined eventually.
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David Ellison and his family invested approximately $17 billion to complete Paramount Skydance's acquisition of Warner Bros. Discovery, according to public filings.
David Ellison will continue to serve as Chairman and Chief Executive Officer
Founder and President of Emerson Collective Laurene Powell Jobs and Activision founder Bobby Kotick join as Independent Directors, along with Skydance Co-CEO Ynon Kreiz; former UK Prime Minister Tony Blair to serve as Board Advisor
, /PRNewswire/ -- Skydance Corporation (NYSE: SKYD) ("Skydance") today announced the director and advisor designees for the newly combined company, formed through Paramount's merger with Warner Bros. Discovery, Inc. (NASDAQ: WBD). The designees will join the Skydance Board of Directors, effective immediately.
David Ellison will chair the Board and continue to serve as Skydance's Chairman and Chief Executive Officer. The Board will include all current members of Paramount's Board, along with three new additions: Ynon Kreiz, Co-Chief Executive Officer of Skydance, Laurene Powell Jobs, founder and president of Emerson Collective; and Bobby Kotick, founder and former Chief Executive Officer of Activision. Powell Jobs and Kotick will join as Independent Directors.
Powell Jobs is a visionary entrepreneur and one of the most influential leaders in business and philanthropy. She is also a committed investor in journalism and media, supporting quality, independent reporting and storytelling at both the national and local levels. She built her career on creating institutions that endure and drive meaningful change. Her leadership extends across education, climate and community-driven initiatives. As founder and president of Emerson Collective, she pioneered a groundbreaking model that unites venture investing and philanthropic grant-making to tackle society's most complex challenges, and she has shown a rare gift for identifying bold ideas early and scaling them into lasting impact. That dedication, together with her extensive experience in investing and philanthropy, makes her a valuable addition to Skydance's board.
Bobby Kotick brings more than three decades of public-company leadership, having served as CEO of Activision for 32 years and built it into one of the world's most successful video game companies. He paired bold strategic moves, including the company's merger with Vivendi Games, with disciplined capital allocation and a consistent record of rewarding shareholders. That record culminated in the sale of Activision Blizzard to Microsoft for $68.7 billion, the largest transaction in the history of the video game industry. Throughout his tenure, he showed a rare ability to anticipate shifts in how consumers engage with entertainment, investing in new platforms, new business models and new ways of reaching fans while keeping creative excellence at the center of the enterprise. His experience scaling a franchise-driven business, managing the complexity of a global public company and steering major industry transitions will serve Skydance well as it navigates an evolving media and entertainment landscape.
Former UK Prime Minister Tony Blair will join as a Board Advisor. Blair, who will be acting in a personal capacity, is Executive Chairman of the Tony Blair Institute for Global Change, a not-for-profit organization, which helps leaders govern in the age of AI. His global leadership experience and commitment to innovation position him as an invaluable advisor in shaping Skydance's strategic priorities.
Skydance is a creative-first, audience-focused, tech-forward and globally scaled company, and these directors reflect that ambition. Their combined experience across media and entertainment, technology, finance and global affairs will provide strategic guidance and oversight as Skydance brings together its complementary businesses, storytelling capabilities and technology platforms, helping to align our goals and accelerate growth.
Said David Ellison, Chairman and CEO of Paramount, a Skydance Corporation:
"I am delighted to welcome Laurene and Bobby to our Board and honored to have Tony join us as an Advisor. Laurene is a true visionary and one of the great institution builders of our time. Her vision, judgment and unwavering commitment to high-quality journalism and media investments make her a truly exceptional addition to our Board. Through Emerson Collective, she pioneered an innovative model that brings together venture investing and philanthropy to tackle society's most complex challenges, and she has an extraordinary gift for recognizing bold ideas early and turning them into lasting impact."
Ellison continued: "Bobby led a global entertainment company through three decades of sustained growth, and he brings real perspective on building enduring franchises and connecting with fans. His record of pairing bold strategic moves with disciplined capital allocation is exactly the experience we need as we bring our businesses together. Tony has led at the highest levels of government, respected for his intellect, strategic vision and ability to bring people together around bold, forward-looking ideas. His global perspective and insight will be invaluable as we turn ambition into results."
Ellison added: "Together with our other directors, they bring the experience and fresh perspectives we need to build Skydance into an extraordinary company, one that honors the legacies of Paramount and Warner Bros. Discovery while setting a bold course for the future. United by a commitment to creative excellence, innovation and long-term shareholder value, this Board will help us empower our teams, strengthen our businesses and deliver exceptional entertainment to audiences around the world."
The Director-designees are as follows:
David Ellison, Chairman and Chief Executive Officer of Skydance Barbara Byrne, Former Vice Chairman of Barclays PLC (Independent Director) Andy Campion, Chairman and CEO of Unrivaled Sports (Independent Director) Gerry Cardinale, Founder, Managing Partner, and Chief Investment Officer, RedBird Capital Partners Safra A. Catz, Executive Vice Chair and Former CEO, Oracle Corporation Andy Gordon, President of Skydance Justin G. Hamill, Managing Director and Chief Legal Officer, Silver Lake (Independent Director) Lauren Powell Jobs, Founder and President, Emerson Collective (Independent Director) Bobby Kotick, Founder and former CEO of Activision (Independent Director) Ynon Kreiz, Co-Chief Executive Officer of Skydance Sherry Lansing, Former Chairman and CEO of Paramount Pictures (Independent Director) Paul Marinelli, President, Lawrence Investments, LLC John L. Thornton, Chairman of RedBird Capital Partners About Skydance
Skydance is a next-generation global media and entertainment company, composed of three business segments: Studios, Direct-to-Consumer, and TV Media. Skydance's portfolio unites legendary brands, including Paramount, Warner Bros., HBO, Paramount+, Pluto TV, CBS, CNN, CBS Sports, TNT Sports, Nickelodeon, Cartoon Network, MTV, Food Network, BET, HGTV, and Comedy Central.
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
See what would break the Warner Bros. Discovery, Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.
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The full Warner Bros. Discovery, Inc. investment case, its status and the next test to watch live on the Warner Bros. Discovery, Inc. thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
Index Dow Jones +0,71 % na 51630,56 b., S&P 500 +0,74 % na 7831,73 b., Nasdaq Composite +0,75 % na 27682,86 b.
Nejsledovanější americké indexy v úvodu úterního obchodování posilují. Index S&P 500 směřuje ke čtvrtému růstu v řadě a nejdelší růstové sérii za poslední dva měsíce.
Společnost Alphabet (-0,28 %) uzavřela dohodu se společností Constellation Energy (+14,0 %) o odběru elektřiny z jaderných zdrojů na dvacet let. Agentura Bloomberg uvádí, že technologické firmy soupeří o zajištění dodávek elektřiny pro rychle rostoucí datová centra a jaderná energie je pro ně atraktivní díky nepřetržitým a bezemisním dodávkám.
Po měsících právních sporů dokončil mediální konglomerát Paramount Skydance fúzi s Warner Bros. Discovery v hodnotě 110 miliard USD.
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Hollywood zažívá jednu z největších mediálních transakcí posledních let. Společnost Skydance dokončila převzetí Warner Bros. Discovery za 110 miliard dolarů a pod jednu střechu tak spojuje značky jako HBO, CNN, Paramount Pictures nebo Warner Bros. Nový mediální gigant vzniká v době, kdy tradiční zábavní průmysl svádí boj o diváky se streamovacími platformami a čelí sílícím politickým tlakům.
Americký mediální konglomerát Paramount Skydance dnes dokončil převzetí konkurenční společnosti Warner Bros. Discovery v hodnotě přibližně 110 miliard dolarů (2,4 bilionu Kč). Skupina, která nově nese název Skydance, to oznámila v dnešní tiskové zprávě. Šéf skupiny David Ellison již minulý týden uvedl, že účelem názvu Skydance je zachování samostatné identity studií Paramount a Warner Bros. Akcie sloučené společnosti se dneškem přesunuly z trhu Nasdaq na newyorskou burzu (NYSE), kde se budou obchodovat pod symbolem SKYD.
Dohoda o mimosoudním urovnání žaloby 12 amerických států v čele s Kalifornií před necelým týdnem odstranila poslední zásadní právní překážku spojení společností. Podle kalifornského hlavního státního zástupce Roba Bontyho je součástí dohody mimo jiné přesun větší části filmové produkce do Spojených států. Paramount se v dohodě rovněž zavázal vytvořit radu, jejímž úkolem bude zajistit redakční nezávislost televizí CNN a CBS.
K transakci dochází v době, kdy Hollywood čelí klesajícímu počtu předplatitelů kabelové televize, vysokým nákladům na získávání diváků streamovacích služeb a neustálému tlaku odborů ohledně pracovních míst a práv tvůrčích pracovníků, poznamenala agentura Reuters.
Část analytiků podle Reuters tvrdí, že název Skydance podtrhuje rozsah Ellisonovy kontroly a skutečnost, že jí podléhají některé z nejznámějších hollywoodských značek. Ellison tak má podle nich k dispozici platformu k prosazování vlastních cílů a záměrů.
Americké ministerstvo spravedlnosti v červnu ukončilo antimonopolní šetření a dospělo k závěru, že transakce nepoškodí hospodářskou soutěž. Později obchod schválily také Evropská komise a britské úřady.
Skupina Warner Bros. Discovery vznikla v roce 2022 spojením firem WarnerMedia a Discovery. Do portfolia skupiny patří slavné filmové studio Warner Bros s právy na řadu filmových příběhů a postav, včetně franšíz Harry Potter, DC Comics nebo Teorie velkého třesku. Součástí skupiny jsou rovněž kanály HBO, Animal Planet či zpravodajská televize CNN. Ta za své zpravodajství dlouhodobě čelí kritice od amerického prezidenta Donalda Trumpa.
Paramount Skydance vznikl fúzí mediálních firem Paramount Global a Skydance Media, kterou úřady schválily na konci loňského července. Součástí skupiny je například filmové a televizní studio Paramount Pictures, televizní síť CBS či streamovací služba Paramount+.
Loni v říjnu Paramount Skydance koupil provozovatele názorového webu The Free Press (TFP). Zakladatelka TFP a konzervativní komentátorka Bari Weissová se současně stala šéfredaktorkou zpravodajské stanice CBS News z této skupiny. Podle médií by po dokončení transakce na zpravodajství CNN měla dohlížet právě Weissová, což podle některých médií vyvolává obavy ze změny kurzu stanice.
CBS pod vedením Weissové čelí kritice za kroky, které podle kritiků vycházejí vstříc Trumpově administrativě. Kritické reakce a obvinění z cenzury vyvolalo rozhodnutí Weissové neodvysílat ve zpravodajském pořadu 60 Minutes reportáž z věznice CECOT v Salvadoru, kam Trumpova vláda bez řádného procesu deportovala migranty. Podle Weissové nelze reportáž odvysílat bez vyjádření administrativy. Autoři namítají, že vláda opakovaně odmítla reagovat.
Warner Bros. Discovery (WBD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this operator of cable TV channels such as TLC and Animal Planet have returned +9.5% over the past month versus the Zacks S&P 500 composite's +0.6% change. The Zacks Broadcast Radio and Television industry, to which Warner Bros. Discovery belongs, has lost 10.6% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Warner Bros. Discovery is expected to post earnings of $0.02 per share, indicating a change of +133.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of -$1.08 for the current fiscal year indicates a year-over-year change of -472.4%. This estimate has changed +2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.1 indicates a change of +109.3% from what Warner Bros. Discovery is expected to report a year ago. Over the past month, the estimate has changed -41.2%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Warner Bros. Discovery.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Warner Bros. Discovery, the consensus sales estimate of $8.84 billion for the current quarter points to a year-over-year change of -2.3%. The $36.22 billion and $37.51 billion estimates for the current and next fiscal years indicate changes of -2.9% and +3.6%, respectively.
Last Reported Results and Surprise HistoryWarner Bros. Discovery reported revenues of $8.72 billion in the last reported quarter, representing a year-over-year change of -11.2%. EPS of $0.06 for the same period compares with $0.63 a year ago.
Compared to the Zacks Consensus Estimate of $9.29 billion, the reported revenues represent a surprise of -6.19%. The EPS surprise was +146.15%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Warner Bros. Discovery is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Warner Bros. Discovery. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Download this episode on Apple Podcasts/Spotify or listen below:
Nike’s (NKE) China slump is getting harder to outrun. (00:14) Moderna (MRNA) is joining the Nasdaq-100. (01:44) The mortgage industry is bracing for a credit-reporting shake-up. (02:17)
This is an abridged transcript.
Nike (NKE) continued to face headwinds from its Chinese and e-commerce businesses, driving overall sales down 4% from last year and resulting in a top-line miss.
Shares are down more than 9% in premarket trading.
For the fiscal first quarter, Nike’s North American business helped offset some of the losses in China and EMEA, but softness was noted in most of its business units, including Converse (-28%), NIKE Brand wholesale (-1%), and NIKE Direct (-8%).
By region, China was again Nike’s weakest market, with sales down 22% year-over-year to a below-consensus $1.2B (vs. $1.31B estimate), with footwear, apparel, and equipment all suffering double-digit losses.
For fiscal year 2027, Nike (NKE) expects revenues to decline by high single digits with adjusted EPS within a range of $1.15 to $1.35, excluding approximately $0.15 of restructuring expenses related to Pace. This falls short of estimates of $1.67 per share.
As part of its transformation to accelerate and scale the success of Nike's Sport Offense, the company announced its Pace initiative, building on the cost realignment plan announced last March.
Pace includes efforts to modernize Nike's (NKE) global supply chain, a new campus in India, realignment to three geographies, and further streamlining of the organization.
This initiative is expected to deliver approximately $2.5B in savings through FY31, including $1B in employee-related costs.
Nasdaq, on Thursday, said that Moderna (MRNA) will become a component of the Nasdaq-100 Index, replacing Warner Bros. Discovery (WBD) before the market opens on Friday, October 9.
The vaccine maker's shares have jumped more than sixfold this year to a valuation of roughly $75B.
Warner Bros. Discovery is also set to be removed from major indexes, including those tracked by S&P and MSCI.
Its merger with Paramount Skydance (PSKY) is expected to close on October 6 following a months-long delay.
The Federal Housing Finance Agency is planning to instruct mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) to require lenders to use credit data from two major credit reporting bureaus, instead of three.
Bloomberg News reported, citing a person familiar with the plans the new requirement could be unveiled by FHFA Director Bill Pulte as soon as Oct. 12, when he's scheduled to speak at a mortgage industry conference.
Equifax (EFX), TransUnion (TRU), and Experian Plc (EXPGF) (EXPGY) are the dominant credit reporting firms. Loans sold to Fannie (FNMA) and Freddie (FMCC) are currently required to include a tri-merge report, which combines data from all three of the companies.
Shares in Fair Isaac (FICO), which creates tri-merge reports, dropped 7.0% in Thursday after-hours trading and are down 6.6% premarket. TransUnion (TRU) is down 2.4% and Equifax (EFX) is down 2.6%.
Last month, Pulte said he was considering a "bi-merge" requirement as part of the Trump administration's efforts to lower closing costs in a bid to make homeownership more affordable.
The person told Bloomberg that the new requirement is expected to take effect within one to three months of the announcement.
This was also considered by the Biden administration. However, there were concerns at the time about accurately pricing mortgage risk.
And a trending search topic on Seeking Alpha is Nasa SpaceX Crew 13 launch.
SpaceX (SPCX) on Thursday launched four astronauts to the International Space Station, extending the company’s role as NASA’s primary provider of crew transportation.
A Falcon 9 rocket carrying a Crew Dragon capsule lifted off from Cape Canaveral Thursday carrying two NASA astronauts, one Russian cosmonaut and an astronaut with the Canadian Space Agency.
According to Nasa’s website, the spacecraft docked with the ISS around 7pm.
For investors, successful NASA missions offer them a measure of the reliability of SpaceX’s programs while development of Starship represents a potentially larger but less proven source of future growth.
Catalyst watch:
Metallica’s Life Burns Faster residency at Sphere (SPHR) in Las Vegas begins in a new twist for the venue.
Stock index futures are in the green.
Crude oil is down 3.8% at $89. Brent crude is down 2.7% at $99.
The FTSE 100 is up 0.1% and the DAX is up 0.8%. China’s Shanghai Composite remained closed today. India's Sensex was also closed today.
One stock on the biggest movers list: Synaptics (SYNA) +14%, ON Semiconductor (ON) +6% - Shares climbed after ON agreed to acquire Synaptics for $123 per share in cash, or approximately $5.7B, replacing the all-stock deal announced in June that was valued at about $7B.
Economic calendar:
8:30 am Employment Situation
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
A federal judge has granted Paramount’s settlement agreement with 12 states that sued over the company’s takeover of Warner Bros. Discovery, allowing the companies to soon close their $81 billion megamerger.
In a Wednesday order, U.S. District Judge Araceli Martínez-Olguín ruled that the proposed consent decree was a “fair, reasonable, and good faith approach to address the competitive harms” alleged by the states’ lawsuit. Paramount, which was bought by Skydance just last year, previously called the antitrust challenge the last hurdle ahead of closing its Warner merger.
The companies now expect to complete the deal on Oct. 6. Shortly after Martínez-Olguín’s ruling Wednesday afternoon, Paramount also announced Ynon Kreiz — who is toy giant Mattel’s current chief executive — will soon join as co-CEO alongside David Ellison.
In a statement, Ellison said Paramount’s merger with Warner marks a “transformational moment for our industry” and that he and his new co-CEO will lead a business that is “creator-first, tech-forward and built to scale globally.”
A Paramount-Warner marriage will bring together two of Hollywood’s last five legacy studios. HBO Max, a library full of titles including “Harry Potter” and cable networks such as CNN will also find themselves under the same roof with CBS, the likes of the “Top Gun” franchise and the Paramount+ streaming service.
That further concentrates power in an industry already run by just a handful of major players. And many critics of the deal have decried the states’ settlement, arguing the terms are too weak.
The final antitrust fightParamount touted clearances for its Warner acquisition from regulators worldwide over recent months, including the Trump administration’s Justice Department in the U.S.
But in July, top prosecutors from 12 states — led by California Attorney General Rob Bonta — sued to block the merger altogether. They alleged a Paramount-Warner combination would “extinguish competition” in Hollywood and lead to fewer choices for consumers, particularly movie theatergoers and cable customers.
Last week, the states agreed to settle those claims through new commitments from Paramount, including pledges to increase film production in the U.S. over the next five years, grant millions of dollars to a fund aimed at supporting workers displaced by the merger and establish new editorial monitoring of CNN and CBS.
Martínez-Olguín didn’t greenlight the terms right away — maintaining at a Thursday hearing that the court isn’t merely a “rubber stamp” on a settlement of this kind and that she, like many others, had questions. The judge granted outside critics of the settlement (including members of the Block The Merger coalition and the League of United Latin American Citizens) a brief window to share their opposition. She also instructed Paramount and the states to respond to concerns raised by Democratic Sen. Cory Booker.
By Wednesday’s order, however, she concluded that the hopes for settlement terms to go further “do not rise to the level of legal violations upon which the Court can reject the parties’ negotiated resolution.”
The Writers Guild of America, which had filed its own suit shortly after the states in July, also reached a settlement agreement with Paramount last week — concluding that it couldn’t continue its legal fight alone.
Ongoing criticism of the dealThe Block the Merger coalition on Wednesday maintained the states’ settlement was a “toothless” deal.
“In years to come, we’ll be able to point to this failure to put consumers over the monied interests of corporate consolidation as the tipping-point moment for media in this country,” Block the Merger said in a statement. But, the group added, “if there is one discernible benefit to the approval of this corporate takeover, it’s that people are now wide awake and paying attention — and their anger is not going to fade away.”
Before agreeing to settle, Bonta previously said the states would only consider “robust” structural remedies. The bulk of the eventual settlement outlined behavioral requirements, at least in the immediate future, with some potential “court enforceable” penalties if Paramount breaks promises down the road.
Even so, most of the company’s new commitments only last five years. Paula Blizzard, an attorney for California, said in Thursday’s hearing that the states eventually settled on terms that didn’t “last forever” because the industry is changing — while immediate divestments, or even the complete blocking of the deal that they initially demanded, could open the door to further acquisitions.
Among those new commitments include a pledge from Paramount to increase spending on film production in the U.S. — by at least an additional $1.5 billion over the next five years — and promises to release at least 30 films each year, a figure Ellison already touted earlier in his quest for Warner.
The states’ settlement would require Paramount to distribute 30 films in theaters each year for the next two years — and 32 films in each of the three years after that. The fine print notes that only 50% of those movies would have to be “produced or jointly produced” by the combined company. If Paramount fails to meet these film outputs, the states say it will have to divest from Miramax Studios and pay $30 million for each missed film toward healthcare and retirement trust funds associated with the Writers Guild of America and other industry unions.
Paramount also agreed to commit $47.5 million to help fund training and career development for workers displaced by the merger, again over the next five years ($9.5 million each year).
Meanwhile, when it comes to cable, the states’ settlement orders the company to negotiate deals for current Paramount-owned and Warner-owned basic cable channels separately over the next five years. If Paramount violates those terms, a court may order future divestments.
The company must also form a “News Editorial Independence Board” to monitor news operations at CBS and CNN within 180 days of completing its Warner acquisition. But critics point to editorial turmoil already seen at CBS under Skydance ownership — and aren’t convinced this new body will move the needle much.
Per court documents outlining the settlement’s terms, Paramount’s new editorial body will be made up of five “active or retired” journalists with at least 10 years of experience — all appointed by, and reporting to, the combined company’s board of directors for three-year terms. Beyond his CEO title, Ellison is Paramount’s current chairman and is set to remain in the top spot after the Warner acquisition closes.
While joining the rest of the states in the wider settlement, Colorado and Washington declined to sign off on the editorial board terms. And prosecutors like Connecticut Attorney General William Tong, who wanted a full divestiture of CNN and CBS, said last week he wished the deal could have gone further.
Including billions of dollars in debt, Paramount’s buyout of Warner is currently valued at about $111 billion based on outstanding shares.
—Wyatte Grantham-Philips, AP Business Writer
The final deadline for the Most Innovative Companies Awards is Friday, October 2, at 11:59 p.m. PT. Apply today.
NEW YORK--(BUSINESS WIRE)--Mediaocean Announces Prisma Direct Integration with Warner Bros. Discovery Advertising to Accelerate Premium Advertising Transactions.
Starz Entertainment (NASDAQ:STRZ – Get Free Report) and Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Profitability This table compares Starz Entertainment and Warner Bros. Discovery’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Starz Entertainment -33.98% -25.64% -6.79% Warner Bros. Discovery -8.77% -8.91% -3.20% Institutional and Insider Ownership 60.0% of Warner Bros. Discovery shares are held by institutional investors. 22.6% of Starz Entertainment shares are held by insiders. Comparatively, 0.7% of Warner Bros. Discovery shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation This table compares Starz Entertainment and Warner Bros. Discovery”s revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Starz Entertainment $1.32 billion 0.29 -$115.80 million ($25.49) -0.87 Warner Bros. Discovery $37.30 billion 2.08 $727.00 million ($1.27) -24.29 Warner Bros. Discovery has higher revenue and earnings than Starz Entertainment. Warner Bros. Discovery is trading at a lower price-to-earnings ratio than Starz Entertainment, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations This is a summary of recent recommendations and price targets for Starz Entertainment and Warner Bros. Discovery, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Starz Entertainment 1 3 4 1 2.56 Warner Bros. Discovery 3 13 4 2 2.23 Starz Entertainment presently has a consensus price target of $32.71, suggesting a potential upside of 47.49%. Warner Bros. Discovery has a consensus price target of $28.61, suggesting a potential downside of 7.26%. Given Starz Entertainment’s stronger consensus rating and higher probable upside, equities analysts clearly believe Starz Entertainment is more favorable than Warner Bros. Discovery.
Risk and Volatility Starz Entertainment has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500. Comparatively, Warner Bros. Discovery has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.
Summary Warner Bros. Discovery beats Starz Entertainment on 9 of the 14 factors compared between the two stocks.
(Get Free Report)
Starz is a premium cable and streaming network owned by Starz Entertainment, which was formerly a part of Lionsgate. Starz had about 20 million subscribers in the U.S. and Canada as of Dec. 31, 2024. The company’s franchises include “Outlander” and “Power.”
About Warner Bros. Discovery (Get Free Report)
Warner Bros. Discovery, Inc. operates as a media and entertainment company worldwide. It operates through three segments: Studios, Network, and DTC. The Studios segment produces and releases feature films for initial exhibition in theaters; produces and licenses television programs to its networks and third parties and direct-to-consumer services; distributes films and television programs to various third parties and internal television; and offers streaming services and distribution through the home entertainment market, themed experience licensing, and interactive gaming. The Network segment comprises domestic and international television networks. The DTC segment offers premium pay-tv and streaming services. In addition, the company offers portfolio of content, brands, and franchises across television, film, streaming, and gaming under the Warner Bros. Motion Picture Group, Warner Bros. Television Group, DC, HBO, HBO Max, Max, Discovery Channel, discovery+, CNN, HGTV, Food Network, TNT Sports, TBS, TLC, OWN, Warner Bros. Games, Batman, Superman, Wonder Woman, Harry Potter, Looney Tunes, Hanna-Barbera, Game of Thrones, and The Lord of the Rings brands. Further, it provides content through distribution platforms, including linear network, free-to-air, and broadcast television; authenticated GO applications, digital distribution arrangements, content licensing arrangements, and direct-to-consumer subscription products. Warner Bros. Discovery, Inc. was incorporated in 2008 and is headquartered in New York, New York.
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Rob Bonta, Attorney General of the State of California, speaks during the 2026 Concordia Annual Summit at Sheraton New York Times Square in New York, Tuesday, Sept. 22, 2026. Getty Images for Concordia Summit Antitrust suits aren’t supposed to be about politics, and yet that’s what’s happening of late, whether it’s Trump’s attempt during his first term to block AT&T from buying Time Warner, or California AG Rob Bonta looking to thwart Paramount’s purchase of TW’s successor, Warner Bros. Discovery.
It’s an odd way to run an economy and doesn’t do anyone any good.
That includes the pols themselves who end up looking foolish and weak when they ultimately lose.
It’s also a clunker for the supposed beneficiaries of these lawsuits, the American people.
The reasons that Warner has landed in the middle of this bipartisan folly are instructive.
The company simply isn’t cutting it on its profit-and-loss statement.
Never has.
That’s why AT&T — after beating back Trump’s attempt to kill its deal to buy the Hollywood studio that also owns HBO and CNN — unloaded the whole thing in a transaction that created Warner Bros. Discovery.
That’s also why WBD CEO David Zaslav, for all his managerial excellence in cutting overhead and achieving major success in motion pictures, was forced to unload the whole thing to Paramount Skydance, another new conglomerate run by indie producer David Ellison and his father, tech tycoon and Trump pal Larry Ellison.
Recall: Trump tried to argue that AT&T coupled with Warner Media — HBO, CNN, various cable channels and a streaming service — would be a monopoly that hurt consumers, ignoring that it was barely competitive against Big Tech and streaming giant Netflix. His real enemy was CNN, which is why the courts saw through his antitrust arguments and approved the deal.
Odd that Bonta, a lefty pol no one had ever heard of until now, tried to spin that he had uncovered a monopoly when in reality he was just rehashing the nonsense that Trump 1 tried to pass off.
AT&T couldn’t make a business with Warner Media and the latest iteration of Warner Bros. Discovery didn’t work, either.
Scoring a few points Bonta enjoyed a few months of nonstop publicity arguing that these two middling companies were going to rule the media world with a monopoly.
Meanwhile, EU and UK regulators are approving the merger as swiftly as the Trump administration, despite their distaste for the latter.
Bonta’s bigger goal, of course, was to score points with the far left — an ever growing contingent of his party — by pointing out how Larry Ellison is besties with Trump and crowing that he wasn’t about to let the Ellisons’ media giant rule the airwaves with Trump.
But politics has its limits, as Trump and now Bonta have discovered.
As my old man would say, Bonta’s fatal mistake was believing his own bulls–t.
Charlie Gasparino has his finger on the pulse of where business, politics and finance meet Sign up to receive On The Money by Charlie Gasparino in your inbox every Thursday.
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For weeks he celebrated on X how lefty activist actor Mark Ruffalo inspired the lawsuit, scrambling to earn more points with his progressive base.
Ruffalo, it should be noted, spends more time these days opining about antitrust law than doing movies.
Like Bonta, he couldn’t keep his mouth shut.
This may have been the deciding factor, my sources say, in the AG’s decision to agree to settlement terms so favorable to Ellison that it’s hard to believe that Bonta brought the case in the first place.
Ruffalo spewed lots of garbage about these companies having the power to upend the media ecosystem and eclipse Netflix and Big Tech.
But his bizarre and unsubstantiated assertions that Larry Ellison, who is Jewish, aided “genocide” in Gaza because Larry’s software giant Oracle provides technology to Israel was a bridge too far.
Note that California’s Democratic establishment began demanding that Bonta settle as soon as David Ellison began threatening to leave the state and take 50,000 jobs with him.
Also notice the tide turning after Ruffalo’s noxious Ellison-Israel comment.
Jewish groups condemned the blather publicly, but behind the scenes Hollywood’s significant pro-Israel contingent told Gov. Gavin Newsom, his likely successor Xavier Becerra and LA Mayor Karen Bass that they weren’t happy with a rising star in the party taking cues from the likes of Ruffalo.
Money talks in this instance, and the Hollywood establishment was threatening to withhold it.
For the state’s political apparatus, it was a no brainer.
Did they really want a state AG with weird, half-baked ideas about antitrust, Israel and who knows what else upending the media business?
As one person involved in AG’s deliberations put it: “I can’t tell you how much that Ruffalo statement hurt Bonta’s effort.”
Bonta, meanwhile, got his 15 minutes of fame but little more.
He walked away with a settlement that included none of the structural changes he was demanding, and a truce underscoring his legal and political fecklessness that won’t play well if and when he tries to run for governor.
A victory for common sense, you might say.
Let’s hope it’s also a wakeup call for the antitrust enforcers while our monthly bills for Netflix, Amazon Prime and YouTube continue to go through the roof.
The CNN booth at the White House after US President Donald Trump announced he would ban CNN, MS NOW, and Politico from the White House in Washington, D.C., US, September 18, 2026. REUTERS/Evan Vucci/File Photo The White House has blocked CNN from traveling with President Donald Trump on Air Force One for a trip on Saturday to Tennessee, the Washington Post reported on Friday, citing two people familiar with the decision.
Signs hang in the media work area at the White House after CNN, MS NOW, and Politico were kicked off the White House grounds by US President Donald Trump, in Washington, DC, US, September 23, 2026. REUTERS/Evan Vucci A Politico reporter was barred from the White House on Thursday despite a judge's order calling for access to be restored immediately for journalists from Politico, CNN and MS NOW after President Donald Trump banned the news outlets, Politico said.
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 (WBD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this operator of cable TV channels such as TLC and Animal Planet have returned +7.3% over the past month versus the Zacks S&P 500 composite's +1.3% change. The Zacks Broadcast Radio and Television industry, to which Warner Bros. Discovery belongs, has lost 5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Warner Bros. Discovery is expected to post earnings of $0.02 per share for the current quarter, representing a year-over-year change of +133.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of -$1.08 points to a change of -472.4% from the prior year. Over the last 30 days, this estimate has changed +2.6%.
For the next fiscal year, the consensus earnings estimate of $0.17 indicates a change of +115.1% from what Warner Bros. Discovery is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Warner Bros. Discovery is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Warner Bros. Discovery, the consensus sales estimate for the current quarter of $8.84 billion indicates a year-over-year change of -2.3%. For the current and next fiscal years, $36.26 billion and $37.58 billion estimates indicate -2.8% and +3.6% changes, respectively.
Last Reported Results and Surprise HistoryWarner Bros. Discovery reported revenues of $8.72 billion in the last reported quarter, representing a year-over-year change of -11.2%. EPS of $0.06 for the same period compares with $0.63 a year ago.
Compared to the Zacks Consensus Estimate of $9.29 billion, the reported revenues represent a surprise of -6.19%. The EPS surprise was +146.15%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Warner Bros. Discovery is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Warner Bros. Discovery. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Index Dow Jones -0,12 % na 51984,24 b. S&P 500 +0,07 % na 7769,82 b. Nasdaq Composite +0,4 % na 27229,45 b.
Nejsledovanější americké indexy se v úvodu obchodují smíšeně.
Společnost Paramount Skydance (+6,1 %) uzavřela dohodu, která otevírá cestu ke vzniku mediálního a zpravodajského giganta. Urovnáním žaloby, kterou podala skupina amerických států, byla odstraněna poslední významná překážka převzetí společnosti Warner Bros. Discovery. Dokončení této transakce by vedlo ke vzniku jedné z největších zábavních společností na světě.
Akcie společnosti Lennar (+5,6 %) posilují poté co konglomerát Berkshire Hathaway zveřejnil nákup akcií této společnosti za více než 200 mil. USD. Jde o druhého největšího stavitele domů v USA po jedničce D.R. Horton.
Index S&P 500 +0,07 % na 7769,82 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Základní materiály +0,8 % Finanční sektor -0,9 % Komunikační služby +0,8 % Energie -0,9 % Nezbytná spotřeba +0,4 % Utility -0,3 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Sandisk Corp (SNDK) +7,4 % Valero Energy Corp (VLO) -4,6 % Seagate Technology Holdings (STX) +6,2 % Everpure (P) -4,2 % Paramount Skydance Corp (PSKY) +6,1 % Quest Diagnostics (DGX) -3,9 % Western Digital Corp (WDC) +5,7 % Charles Schwab Corp (SCHW) -3,7 % Lennar Corp (LEN) +5,6 % Marathon Petroleum Corp (MPC) -3,6 % Zdroj: Bloomberg
Americké akciové indexy v úvodní seanci nového týdne silně zpevňují v čele s technologickým Nasdaqem, který přidává lehce přes 2 %. Širší index S&P 500 posiluje bezmála o 1,4 %. Relativně nejhůře si pak stojí tradiční index Dow Jones s bilancí +0,6 %.
Za dnešním pozitivním vývojem stojí kombinace rostoucích nadějí na deeskalaci konfliktu s Íránem a konstruktivního tónu jednání „nižších šarží“ mezi USA a Čínou ohledně AI, obchodu či investic před nadcházejícím setkáním prezidentů D. Trumpa a Si Ťin-pchinga, které je naplánováno na tento čtvrtek. Stejně tak pomáhá návrat optimismu do horkého segmentu AI, zejména poté, co nový AI asistent Muse od Meta Platforms (META +12 %) válcuje žebříček amerického App Storu. Obavy z návratnosti obřích výdajů do AI tak alespoň pro dnešní den mizí a celý ekosystém, včetně předních polovodičových producentů a především výrobců procesorů (INTC +11 % / AMD +10 %), vykazuje dvojciferné zisky, stejně jako zmiňovaná Meta. Dnešní výkonnost indexů je pravděpodobně umocněna i zavíráním krátkých pozic.
Ropa dnes výrazně oslabuje. Brent (-3,3 %) se vrací k hladině 100 USD za barel, ještě razantněji odepisuje WTI, která ztrácí 4,5 % na 95,8 USD/barel. Děje se tak na pozadí možných diplomatických jednání mezi USA a Íránem během Valného shromáždění OSN, kde budou přítomni prezidenti obou zemí. A před nadcházejícími volbami do Kongresu na začátku listopadu (midterm elections) potřebuje americký prezident sbírat kladné body.
Pozitivní vývoj dnes vykazují také dluhopisy, které posilují s výjimkou nejkratších splatností. Výnos 10letého amerického vládního bondu se posunul z pátečních 5 % na 4,96 %. Zajímavý vývoj je ale k vidění u drahých kovů, které se k rally v kryptosvětě (Bitcoin +6 %) nepřidávají. Zlato odepisuje 0,7 % na 4 347 USD/oz, stříbro ztrácí 0,3 % na 66,05 USD/oz.
Energetický sektor je dnes jednoznačným propadákem v rámci S&P 500 se ztrátou 2,1 %. Komunikační služby (+4,2 %) a informační technologie (+2 %) naopak dnešním růstům dominují.
Na korporátní úrovni se vedle zmiňovaných technologických firem daří také biotechnologické společnosti Moderna (MRNA +12 %), která těží z oznámení o prezentaci detailních výsledků závěrečné fáze klinického testování personalizované mRNA protinádorové vakcíny zaměřené na prevenci návratu melanomu po chirurgickém odstranění nádoru.
Dvojciferný růst vykazuje také mediální dům Warner Bros. Discovery (WBD +11 %), který dostal finální zelenou k převzetí ze strany konkurenčního Paramountu. Dnešním krokem se téměř uzavírá zhruba roční schvalovací sága a k dokončení transakce by mělo dojít v nadcházejících týdnech.
Index S&P 500 +1,39 % na 7756,52 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Komunikační služby +4,2 % Energie -2,1 % Informační technologie +2 % Utility -0,1 % Zbytná spotřeba +1,5 % Základní materiály -0,1 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Moderna (MRNA) +12 % United Parcel Service (UPS) -4,4 % Intel Corp (INTC) +12 % HP (HPQ) -3,8 % Meta Platforms (META) +12 % FedEx Corp (FDX) -3,6 % Warner Bros Discovery (WBD) +11 % ExxonMobil Holdings Corp (XOM) -3,2 % Akamai Technologies (AKAM) +11 % ConocoPhillips (COP) -3,1 %
David Lamač, Fio banka, a.s.
Paramount Skydance (PSKY.O) has reached a settlement with California and other states suing to block its $110 billion merger with Warner Bros Discovery (WBD.O), Bloomberg News reported on Monday, citing a person familiar with the matter.
Settlement talks came to fruition over the weekend after four states that had opposed terms of a deal outlined with California conceded, the report said. The settlement is expected to be announced later today, Bloomberg added.
Paramount Skydance and Warner Bros Discovery did not immediately respond to Reuters requests for comment.
The settlement would clear one of the final hurdles to the companies' merger, paving the way for one of the largest deals in Hollywood history.
The Wall Street Journal reported over the weekend that Paramount and California's attorney general have discussed a range of concessions in advanced settlement talks, including a $1.5 billion investment in production in the state.
Index Dow Jones +0,23 % na 51800,62 b. S&P 500 +0,71 % na 7704,67 b. Nasdaq Composite +1,28 % na 26861,92 b.
V úvodu seance se přední americké indexy obchodují v kladném teritoriu. Z indexu S&P500 nejvíce rostou akcie společností WBD (+7,3 %) a Paramount SkyDance (+9,7 %), když druhá zmíněná společnost zahájila jednání s kalifornskými úřady o podmínkách plánované akvizice Warner Bros. Discovery. Součástí dohody by mohl být závazek natočit 30 filmů, přičemž za každý chybějící film by Paramount zaplatil pokutu 30 mil. USD.
Posilují také akcie Intelu (+7,9 %) a AMD (+7,4 %). Podle agentury Bloomberg investoři očekávají, že rostoucí obliba autonomních AI agentů výrazně zvýší poptávku po procesorech potřebných pro inferenci. Optimismus podpořil zejména úspěch AI agenta Muse od společnosti Meta (7,2 %), který se v USA stal nejstahovanější bezplatnou aplikací pro iPhone. Arm (+12,5 %) očekává, že trh serverových procesorů poroste o více než 35 % ročně a do roku 2030 dosáhne hodnoty 120 mld. USD. AMD odhaduje příležitost až na 220 mld. USD.
V úvodu seance se nedaří akciím ze sektoru energií v rekci na pokles cen ropy.
Index S&P 500 +0,71 % na 7704,67 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Komunikační služby +2,9 % Energie -1,9 % Informační technologie +1,1 % Nezbytná spotřeba -0,6 % Zbytná spotřeba +0,9 % Utility -0,5 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Paramount Skydance Corp (PSKY) +9,9 % HP (HPQ) -3,0 % Warner Bros Discovery (WBD) +9,8 % United Parcel Service (UPS) -2,8 % Intel Corp (INTC) +9,0 % T-Mobile US (TMUS) -2,8 % Advanced Micro Devices (AMD) +8,7 % ConocoPhillips (COP) -2,7 % Moderna (MRNA) +8,4 % Occidental Petroleum Corp (OXY) -2,7 % Zdroj: Bloomberg
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Warner Bros. Discovery (WBD - Free Report) closed the most recent trading day at $27.81, moving -1.52% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.17%. Meanwhile, the Dow experienced a drop of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.4%.
Heading into today, shares of the operator of cable TV channels such as TLC and Animal Planet had gained 0.04% over the past month, outpacing the Consumer Discretionary sector's loss of 5.4% and the S&P 500's loss of 1.29%.
Analysts and investors alike will be keeping a close eye on the performance of Warner Bros. Discovery in its upcoming earnings disclosure. On that day, Warner Bros. Discovery is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 133.33%. In the meantime, our current consensus estimate forecasts the revenue to be $8.84 billion, indicating a 2.28% decline compared to the corresponding quarter of the prior year.
WBD's full-year Zacks Consensus Estimates are calling for earnings of -$1.08 per share and revenue of $36.26 billion. These results would represent year-over-year changes of -472.41% and -2.77%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Warner Bros Discovery. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.63% higher. Currently, Warner Bros. Discovery is carrying a Zacks Rank of #3 (Hold).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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Warner Bros. Discovery, Inc. (NASDAQ:WBD – Get Free Report) Director Kenneth Lowe sold 200,000 shares of the stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $28.23, for a total transaction of $5,646,000.00. Following the completion of the transaction, the director directly owned 590,108 shares in the company, valued at $16,658,748.84. The trade was a 25.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.
Warner Bros. Discovery Stock Performance NASDAQ WBD opened at $28.04 on Friday. Warner Bros. Discovery, Inc. has a 52-week low of $17.08 and a 52-week high of $30.00. The company has a fifty day moving average of $27.23 and a 200-day moving average of $27.24. The company has a market capitalization of $70.40 billion, a P/E ratio of -22.08 and a beta of 1.57. The company has a debt-to-equity ratio of 0.90, a quick ratio of 0.78 and a current ratio of 0.78.
Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.06 EPS for the quarter, beating analysts’ consensus estimates of ($0.14) by $0.20. Warner Bros. Discovery had a negative return on equity of 8.91% and a negative net margin of 8.77%.The business had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $9.25 billion. During the same quarter in the prior year, the firm earned $0.63 earnings per share. The firm’s revenue was down 11.2% on a year-over-year basis. As a group, equities research analysts predict that Warner Bros. Discovery, Inc. will post -1.08 EPS for the current fiscal year.
Institutional Investors Weigh In On Warner Bros. Discovery A number of hedge funds and other institutional investors have recently modified their holdings of WBD. Brighton Jones LLC lifted its position in Warner Bros. Discovery by 304.9% in the fourth quarter. Brighton Jones LLC now owns 68,950 shares of the company’s stock valued at $729,000 after purchasing an additional 51,920 shares during the last quarter. NewEdge Advisors LLC grew its holdings in shares of Warner Bros. Discovery by 50.5% in the first quarter. NewEdge Advisors LLC now owns 63,254 shares of the company’s stock worth $679,000 after purchasing an additional 21,228 shares during the last quarter. Empowered Funds LLC increased its stake in shares of Warner Bros. Discovery by 6.2% in the first quarter. Empowered Funds LLC now owns 65,082 shares of the company’s stock worth $698,000 after buying an additional 3,779 shares during the period. Focus Partners Wealth increased its stake in shares of Warner Bros. Discovery by 91.6% in the first quarter. Focus Partners Wealth now owns 116,821 shares of the company’s stock worth $1,254,000 after buying an additional 55,837 shares during the period. Finally, Baird Financial Group Inc. raised its holdings in Warner Bros. Discovery by 3.8% during the 2nd quarter. Baird Financial Group Inc. now owns 111,450 shares of the company’s stock valued at $1,277,000 after buying an additional 4,062 shares during the last quarter. Institutional investors own 59.95% of the company’s stock. Key Warner Bros. Discovery News 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 Wall Street Analysts Forecast Growth A number of equities analysts recently weighed in on the company. Freedom Capital raised Warner Bros. Discovery from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th. Seaport Research Partners lowered Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research note on Monday, July 27th. Weiss Ratings upgraded shares of Warner Bros. Discovery from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Tuesday, August 18th. Zacks Research upgraded shares of Warner Bros. Discovery from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 25th. Finally, Huber Research raised shares of Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a research note on Monday, June 1st. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $27.69.
Get Our Latest Analysis on WBD
Warner Bros. Discovery Company Profile (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.
Featured Articles 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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“The Cat in the Hat Theme Song” is written by Olivier Award winner Tim Minchin and performed by FITZ & Tim Minchin featuring Bill Hader
GRAMMY Award winner Lorne Balfe scores Warner Bros. Pictures Animation's first feature film, with the full soundtrack album arriving from WaterTower Music
BURBANK, Calif.--(BUSINESS WIRE)--Warner Bros. Pictures Animation and WaterTower Music today released “The Cat in the Hat Theme Song,” an original song at the center of THE CAT IN THE HAT, the studio's first full-length feature film and the beloved character’s animated theatrical feature film debut, in theaters and IMAX® November 6. Written by Tim Minchin and performed by FITZ & Tim Minchin featuring Bill Hader as the Cat, the track is produced by GRAMMY Award winning composer Lorne Balfe and Minchin. Balfe also composed the film's score. The full soundtrack album arrives from WaterTower Music on October 30, 2026.
The song is exactly what its subject would want it to be, which is to say a piece of self promotion with a horn section. It is the Cat's own theme, written from the inside out, and it sets the tone for a film built by artists who were given room to play.
ASSETS
Album artwork
(Single) Audio /Streaming Link
Trailer
THE THEME SONG
Minchin, the Olivier Award winning composer and lyricist behind Matilda The Musical, wrote the song from the Cat's point of view. Balfe produced the instrumental bed and the track features FITZ, the Los Angeles singer and songwriter who fronts Fitz and The Tantrums, alongside Minchin and Bill Hader in character as the Cat. Vocal production is by Sam Farrar, with additional production by Sam Farrar and Ritch Aitken.
“To be able to be a part of Cat in the Hat is a dream come true. It’s a through line from my childhood to my kid's childhood. And hopefully it earns me a few cred points with them!”
— FITZ, singer and songwriter
“I love this beautiful reimagining of the story of The Cat In The Hat, and was pumped when the team asked me to write his song. The question we asked ourselves was, ‘if The Cat (being a genius, but perhaps not exactly a gifted songwriter!) made up a little theme tune to sing to himself when he was on his missions, what bonkersness would he come up with? And how would we lowly humans then translate that bit of Cat insanity into an absolute banger?’ Well… Voila!”
— Tim Minchin, songwriter
“From the first conversation, we knew the Cat in the Hat had to have his own special and exciting soundtrack that reflected his fun personality. He is an agent of chaos, a lover of joy and silliness, and a fan of singing his own theme song. Tim gave us that hilarious and addictive song, Lorne built a live band around it that sounds like it is having just as much fun as the Cat as they try to keep up with his energy, and then FITZ and Bill got in a room together and the whole thing took off! We’re so proud to have a theme song that is just as fun and irresistible as our Cat!”
— Erica Rivinoja and Alessandro Carloni, directors
THE SCORE
Balfe, whose credits span the Mission: Impossible franchise, The LEGO Batman Movie, Wallace & Gromit: Vengeance Most Fowl and The Crown, built the film's score around live big band performance, arranged by Chris Egan and conducted by James Brett. Sessions were recorded and mixed by Peter Cobbin and Kirsty Whalley at Abbey Road Studios and at the Warner Bros. Eastwood Scoring Stage. Two of the film's original songs were written by its directors, and the USC Trojan Marching Band appears on a rendition of “Shake It Off.”
“Music is such an important part of the world of Cat in the Hat. From the very beginning, the focus was on creating something that captured the wonderfully anarchic spirit of the character while staying true to the imagination and wit of Dr. Seuss. Working with Tim Minchin was a huge part of that. He's an incredible storyteller, and bringing together music, character and narrative in a way that felt mischievous, unpredictable and full of personality was a real joy. His musical sensibility was a natural fit for the world we were creating.”
— Lorne Balfe, Producer and Composer
THE SOUNDTRACK
THE CAT IN THE HAT (Original Motion Picture Soundtrack) will be released by WaterTower Music on October 30, 2026, with music by Lorne Balfe
THEME SONG CREDITS
“The Cat in the Hat Theme Song” (feat. Bill Hader)
Written by Tim Minchin
Performed by FITZ & Tim Minchin (featuring Bill Hader)
Produced by Lorne Balfe and Tim Minchin
Vocal Production by Sam Farrar
Additional Production by Sam Farrar and Rich Aitken
FITZ appears courtesy of Elektra Records / Atlantic Records
From THE CAT IN THE HAT (Original Motion Picture Soundtrack), available on WaterTower Music
ABOUT THE CAT IN THE HAT
Meet the Cat in the Hat you don't know. In the wonderfully whimsical tradition of Dr. Seuss, The Cat in the Hat comes to the big screen in his animated theatrical feature film debut, an all new, epic adventure with an edge, where mischief, magic and mayhem reign supreme. Doing what he does best, the Cat, voiced by Bill Hader, spreads joy to kids in his hilarious, signature and singularly irreverent way, transporting them and audiences on a fantastical journey through a world they have never seen before.
In the film, our hero takes on his toughest assignment yet for the I.I.I.I. (Institute for the Institution of Imagination and Inspiration, LLC): to cheer Gabby and Sebastian, a pair of siblings struggling with their move to a new town. Known for taking things too far, this could be this agent of chaos's last chance to prove himself, or lose his magical hat.
Starring alongside Hader are Matt Berry, Quinta Brunson, Xochitl Gomez, with Giancarlo Esposito, and America Ferrera. Tituss Burgess, Bowen Yang, Paula Pell and Tiago Martinez also star.
The Cat in the Hat is directed by Erica Rivinoja and Alessandro Carloni from their own screenplay, screen story by Caroline Williams, based on the book by Dr. Seuss. It is produced by Daniela Mazzucato and Jared Stern. The executive producers are Bill Hader, Susan Brandt, Bill Damaschke, Kelly Marcel and Steve Zissis, Tim Story and Alex Timbers. It is edited by Dan Molina, with music by Lorne Balfe.
Warner Bros. Pictures Animation's first full length feature film, The Cat in the Hat, comes to theaters and IMAX® across North America on November 6, 2026, and internationally beginning 4 November 2026. It will be distributed worldwide by Warner Bros. Pictures.
ABOUT WARNER BROS. PICTURES ANIMATION
Warner Bros. Pictures Animation, led by President and Chief Creative Officer Bill Damaschke, is the dedicated theatrical animation division of Warner Bros. Pictures and part of Warner Bros. Discovery. Headquartered in Burbank, California, in a Frank Gehry-designed facility adjacent to the Warner Bros. lot, WBPA produces animated feature films across a range of styles and storytelling traditions, in partnership with leading creative talent and international studios. The division builds on Warner Bros.'s century-long legacy of working with iconic directors and visionary up-and-coming filmmakers.
ABOUT WATERTOWER MUSIC
WaterTower Music, the in-house label for Warner Bros. Discovery, releases recorded music as rich and diverse as the company itself. It has been the soundtrack home to many of the world's most iconic films, television shows and games since 2001.
Warner Bros. Discovery (WBD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this operator of cable TV channels such as TLC and Animal Planet have returned +5.1% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Broadcast Radio and Television industry, to which Warner Bros. Discovery belongs, has gained 4.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Warner Bros. Discovery is expected to post earnings of $0.02 per share, indicating a change of +133.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +271.4% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of -$1.11 points to a change of -482.8% from the prior year. Over the last 30 days, this estimate has changed +3.9%.
For the next fiscal year, the consensus earnings estimate of $0.17 indicates a change of +114.6% from what Warner Bros. Discovery is expected to report a year ago. Over the past month, the estimate has changed -440%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Warner Bros. Discovery.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Warner Bros. Discovery, the consensus sales estimate for the current quarter of $8.84 billion indicates a year-over-year change of -2.3%. For the current and next fiscal years, $36.26 billion and $37.58 billion estimates indicate -2.8% and +3.6% changes, respectively.
Last Reported Results and Surprise HistoryWarner Bros. Discovery reported revenues of $8.72 billion in the last reported quarter, representing a year-over-year change of -11.2%. EPS of $0.06 for the same period compares with $0.63 a year ago.
Compared to the Zacks Consensus Estimate of $9.29 billion, the reported revenues represent a surprise of -6.19%. The EPS surprise was +146.15%.
Over the last four quarters, the company surpassed EPS estimates just once. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Warner Bros. Discovery is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Warner Bros. Discovery. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
AlphaGrep UK Ltd acquired a new position in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD – Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The fund acquired 31,866 shares of the company’s stock, valued at approximately $850,000.
Other institutional investors have also recently added to or reduced their stakes in the company. Geode Capital Management LLC increased its position in Warner Bros. Discovery by 1.6% during the fourth quarter. Geode Capital Management LLC now owns 66,597,575 shares of the company’s stock worth $1,912,634,000 after buying an additional 1,028,346 shares during the period. Norges Bank acquired a new position in shares of Warner Bros. Discovery in the 4th quarter valued at $1,123,807,000. Morgan Stanley increased its holdings in shares of Warner Bros. Discovery by 4.8% in the 4th quarter. Morgan Stanley now owns 27,462,742 shares of the company’s stock valued at $791,476,000 after acquiring an additional 1,254,813 shares during the period. Northern Trust Corp raised its position in Warner Bros. Discovery by 3.9% in the 3rd quarter. Northern Trust Corp now owns 23,496,725 shares of the company’s stock valued at $458,891,000 after purchasing an additional 876,869 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its stake in Warner Bros. Discovery by 1.9% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 19,452,808 shares of the company’s stock worth $560,630,000 after purchasing an additional 358,353 shares during the period. Hedge funds and other institutional investors own 59.95% of the company’s stock.
Wall Street Analyst Weigh In A number of equities analysts recently issued reports on WBD shares. Seaport Research Partners lowered Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a report on Monday, July 27th. Huber Research raised Warner Bros. Discovery from an “underweight” rating to an “overweight” rating in a research report on Monday, June 1st. Weiss Ratings upgraded Warner Bros. Discovery from a “sell (d-)” rating to a “sell (d+)” rating in a research note on Tuesday, August 18th. Zacks Research raised Warner Bros. Discovery from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 25th. Finally, Freedom Capital raised Warner Bros. Discovery from a “hold” rating to a “strong-buy” rating in a report on Monday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Warner Bros. Discovery has a consensus rating of “Hold” and a consensus target price of $27.69.
Read Our Latest Stock Analysis on Warner Bros. Discovery Warner Bros. Discovery Stock Down 0.4% Shares of NASDAQ:WBD opened at $28.25 on Friday. The company has a current ratio of 0.78, a quick ratio of 0.78 and a debt-to-equity ratio of 0.90. The firm has a market cap of $70.93 billion, a price-to-earnings ratio of -22.24 and a beta of 1.57. Warner Bros. Discovery, Inc. has a 12-month low of $11.77 and a 12-month high of $30.00. The stock’s 50-day moving average price is $27.09 and its two-hundred day moving average price is $27.26.
Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share (EPS) for the quarter, beating 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 previous year, the company earned $0.63 EPS. The business’s quarterly revenue was down 11.2% compared to the same quarter last year. On average, research analysts forecast that Warner Bros. Discovery, Inc. will post -1.11 EPS for the current year.
Insider Buying and Selling at Warner Bros. Discovery In other news, insider Gerhard Zeiler sold 591,038 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $27.05, for a total value of $15,987,577.90. Following the transaction, the insider owned 537,436 shares of the company’s stock, valued at approximately $14,537,643.80. This trade represents a 52.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Fazal F. Merchant sold 71,539 shares of Warner Bros. Discovery stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $27.75, for a total transaction of $1,985,207.25. Following the transaction, the director owned 33,067 shares in the company, valued at $917,609.25. The trade was a 68.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,950,749 shares of company stock worth $53,999,633 in the last quarter. Company insiders own 0.70% of the company’s stock.
More Warner Bros. Discovery News Here are the key news stories impacting Warner Bros. Discovery this week:
Positive Sentiment: Warner Bros. Discovery reached a deal with Turkey’s Doğuş Media Group to bring Turkish scripted programming to HBO Max. The agreement could improve the service’s international content offering and subscriber appeal. WBD partners with Doğuş to bring Turkish drama to HBO Max Positive Sentiment: WBD launched a shoppable streaming experience in Poland, creating a potential new advertising and commerce revenue channel. The financial impact is likely limited initially but supports its broader streaming monetization strategy. WBD launches shoppable streaming experience in Poland Neutral Sentiment: WBD will discontinue the standalone discovery+ app in India, apparently consolidating content within a broader HBO Max strategy. The move could reduce operating complexity, although it may risk disrupting some existing customers. WBD to discontinue standalone discovery+ app in India Neutral Sentiment: Analysts maintain a consensus “Hold” rating on WBD, indicating limited conviction that the stock’s recent gains will continue without clearer improvement in profitability and its streaming outlook. WBD given consensus Hold rating Negative Sentiment: A director sold 200,000 WBD shares for approximately $5.67 million, reducing his direct holdings by 20.2%. While the sale may be personal or portfolio-related, the sizable insider transaction can weigh on sentiment. SEC insider-trading filing Negative Sentiment: A reported state antitrust lawsuit threatens Paramount’s proposed Warner Bros. Discovery deal, raising uncertainty over regulatory approval, timing and the potential value of the transaction. State antitrust lawsuit threatens Paramount’s Warner Bros. deal Negative Sentiment: Higher-rate expectations are pressuring higher-valuation media and streaming stocks. Although WBD has held relatively steady versus peers, the sector-wide repricing is limiting near-term upside. Rate repricing pressures streaming stocks (Free Report)
Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.
The company’s core activities include film and television production and distribution through units such as Warner Bros.
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Rising Treasury yields are carving a sharp divide inside the streaming sector, and not every media stock is absorbing the pressure equally. The gap between the biggest loser and the name sitting virtually unchanged tells you something important about how…
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Rates are doing the talking Friday morning, and long-duration growth is paying the tab. The pressure’s concentrated in the higher-multiple corners of media, so streaming is where the day’s move shows up cleanly.
For the broader context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.28% to $771.04. The Invesco QQQ Trust (NASDAQ:QQQ) is down 0.13% to $718.59, and that mild tech reading points to a narrower story than a broad growth flush.
Netflix (NASDAQ:NFLX | NFLX Price Prediction) stock is down 4% to $79.16 as higher yields squeeze the highest-multiple name in the streaming group. Meanwhile, Walt Disney (NYSE:DIS) stock is down 2% to $105.37, giving back less as parks, sports, and consumer products dilute its duration risk. Warner Bros. Discovery (NASDAQ:WBD) stock is down 0.3% to $28.28, effectively unchanged as pending deal math and a compressed multiple insulate its shares from a rate-driven repricing.
Yields Do the Sorting The 10-year Treasury yield remains elevated at 4.77%. That level came from a climb off 4.64% on August 25, a sharp ascent in just a week and a half. A hot August payrolls print pushed the market to reprice the Federal Reserve path, and the reaction hits long-dated cash flows first.
Netflix disclosed no company-specific news this morning, so the day’s move reads as a valuation reset with no fresh operating catalyst behind it. Profit taking sits alongside the rate story, since Netflix stock had climbed heading into today’s session, and trimming after that run is the other candidate mechanism. The company’s Q2 2026 guide called for 13% to 14% full-year revenue growth and $12.5 billion in free cash flow, with an ad business tracking to double toward $3 billion.
Duration Explains the Spread Netflix carries a trailing P/E of 31.3x and the longest-dated earnings expectations of the three, so a higher discount rate hits its shares hardest. The company’s $27.1 billion in remaining buyback capacity and 29.5% operating margin cushion the fundamental story, yet neither offsets a repricing of the multiple in a single session. Netflix’s Q2 2026 revenue grew 13.4% year over year, and the growth model still has a wide runway to compound.
Disney trades at a trailing P/E of 14.9x, with near-term cash flow anchored by Experiences operating income up 20% to $3.02 billion in fiscal Q3 2026. The company also reiterated fiscal 2026 adjusted EPS growth of 16% including the 53rd week and lifted its buyback target to at least $9 billion. That mix of parks earnings, streaming margin expansion, and ESPN scale pulls Disney’s duration in and softens the rate hit today.
Warner Bros. Discovery sits at a lower multiple entirely, with the pending Paramount Skydance transaction anchoring the stock to deal math. The company’s Q2 2026 streaming segment delivered $512 million in adjusted EBITDA at a 17% margin, and net leverage stands at 3.4x on $29.7 billion of net debt. The merger closing sits on hold until at most June 1, 2027, so that overhang sets WBD’s price today more than the yield curve does.
What to Watch Next The next cue is the afternoon yield print and any incremental commentary from the media majors before the close. Investors can watch for whether the 10-year Treasury yield holds above 4.77% into the bond close, because that reading is what set the tone for growth multiples this morning. If yields ease, the streaming spread can compress in the other direction just as fast, and Netflix stock stands to benefit the most from any relief.
The setup argues for calibrating exposure to the rate path an investor actually expects. Investors should size their Netflix positions to weather further volatility if the growth thesis holds, keep their Disney exposure calibrated to the bundle and Experiences story, and anchor their Warner Bros. Discovery allocation to the deal’s timing rather than the tape’s. Position sizing beats prediction on a session driven by macro readings, and the spread inside the streaming group tells you which name is doing what work in a portfolio.
Contact [email protected] for any questions or corrections.
Jean-Briac Perrette, President and CEO of Global Streaming at Warner Bros. Discovery, Inc.(WBD -0.71%), sold 126,707 shares of Series A common stock on Aug. 27, 2026, according to an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$3.7 millionShares sold (directly held)126,707Post-transaction shares (directly held)1,047,016Post-transaction value$30.24 millionTransaction value based on SEC Form 4 weighted average sale price ($28.96); post-transaction value based on Aug. 27, 2026, market close ($28.88).
Key questionsWhat were the execution details for this Series A common stock sale?
The shares were liquidated in multiple transactions at prices ranging from $28.95 to $28.98 per share. The weighted average execution price of $28.96 was approximately 0.28% higher than the market close of $28.88 recorded on the transaction date.How has this transaction adjusted the executive's direct equity stake?
Following the disposition of 126,707 shares, Jean-Briac Perrette continues to hold 1,047,016 shares directly. This remaining position is valued at approximately $30.1 million based on the Aug. 28, 2026, market close price of $28.77.What is the broader context of insider ownership at the company?
Total insider ownership for the global media and entertainment conglomerate stands at 0.0418%. The company continues to operate across its primary Studios, Network, and Direct-to-Consumer divisions, with the Studios segment managing feature film creation and theatrical releases.Company OverviewMetricValueShare Price (as of market close 2026-08-28)$28.77Market Capitalization$72.1 billionRevenue (TTM)$36.1 billionNet Income (TTM)-$3.2 billionCompany SnapshotWarner Bros. Discovery operates a diversified media and entertainment portfolio spanning theatrical film production, television programming development, and direct-to-consumer streaming platforms, generating revenue across Studios, Network, and DTC segments.The company monetizes its content through multiple channels, including theatrical releases, licensing agreements with external partners, advertising-supported and subscription-based streaming services, and traditional broadcast and cable distribution.The company serves global audiences, including theatrical moviegoers, television viewers, streaming subscribers, and media buyers, positioning itself as a comprehensive entertainment provider across all major distribution platforms.Warner Bros. Discovery is a major global media and entertainment conglomerate with a market capitalization of $72.1 billion and TTM revenue of $36.1 billion, leveraging a vertically integrated business model spanning content creation, distribution, and direct consumer engagement. The company's strategic positioning across theatrical, broadcast, and streaming channels provides diversified revenue streams and competitive advantages in an evolving media landscape. With 35,500 employees globally, WBD maintains significant scale and operational capabilities to compete across traditional and digital entertainment platforms.
What this transaction means for investorsJean-Briac Perrette's sale of Warner Bros. Discovery shares comes at a time when the company has agreed to be acquired by Paramount Skydance.
Perrette did not disclose why he sold 11% of his stake. However, the deal has faced pushback from some state attorneys general.
Admittedly, it is possible that the resistance by some states could sink the deal. Thus, he might have decided to hedge in case the merger fell through.
Nonetheless, the shares sold at just under $29 per share, a modest discount from the $31 per share. That is close enough to the deal price that it is more than likely to happen, though the stock would probably drop significantly if Paramount abandons the deal.
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Such conditions indicate Warner Bros Discovery is probably not a buy here. For those holding the stock, selling a portion, as Perrette did, could make sense as a hedge. Nonetheless, they are likely to be best off just waiting for Paramount to buy them out at $31 per share.
Weekly Market HighlightsDuring the week, 828 stocks gained more than 10%, while 722 stocks declined by more than 10%, indicating significant volatility in the
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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.
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Warner Bros. Discovery (NASDAQ:WBD | WBD Price Prediction) has become one of the most talked-about setups in media, backed by billionaire investor activity. Third Point disclosed a 20 million-share WBD position worth about $533 million in Q2 2026, making it Daniel Loeb’s largest new disclosed position, funded by exits from NVIDIA and Broadcom.
Our 24/7 Wall St. price target for WBD is $31.88, implying 13.89% upside from $27.99. Our recommendation is buy at moderate confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $27.99 24/7 Wall St. Price Target $31.88 Upside 13.89% Recommendation BUY Confidence Level 50% A Stock the Market Keeps Underreacting To WBD is up 137.61% over the last year but only 2.64% over one month and -2.88% year to date, sitting just below its $30 52-week high.
Q2 2026 revenue of $8.72 billion missed by 5.39%, but GAAP EPS of $0.06 beat the -$0.10 consensus by 158.94%. Operating income jumped 228.11% year over year.
Streaming revenue crossed $3 billion for the first time with adjusted EBITDA of $512 million, up 63% ex-FX. The Paramount Skydance merger remains on hold with a June 1, 2027 outside date, providing optionality beyond operating results.
The Case for $33 and Higher Our bull scenario points to $33.28, an 18.9% return. HBO Max is targeting 150 million subscribers by year-end 2026, and management flagged “a powerful and impressive business turnaround from a predominantly U.S.-only HBO streaming business losing $2 billion plus in 2022 to a global high growth asset.”
The 2027 slate includes Dune: Messiah, Man of Tomorrow, The Batman Part II, and LOTR: Hunt for Gollum, and the Harry Potter series debuts Christmas Day 2026. JB Perrette told analysts “2027 is arguably our best year yet.”
A completed Paramount Skydance deal or competing bid would likely push the stock through consensus targets.
What Could Go Wrong Our bear scenario is $25.35, a 9.4% drawdown. Net leverage sits at 3.4x on $29.7 billion of net debt, Global Linear Networks revenue fell 17%, and the NBA absence created a 20% ex-FX ad headwind. Analyst tone is muted: 16 of 19 covering analysts sit at hold, with only 2 Buys and 1 Strong Sell.
Insider activity has skewed net selling across 40 recent transactions. Much of Q1’s -$1.17 EPS reflected the $2.8 billion Netflix termination fee rather than deteriorating operations, and refinancing the bridge loan should deliver roughly 150 basis points of annual interest savings.
How WBD Compares to Disney and Netflix Disney (NYSE:DIS) is the closest diversified peer, with a P/E near 15 and fiscal Q3 2026 revenue of $25.25 billion. Disney’s Entertainment SVOD hit double-digit margins first, providing a template for what a re-rated WBD streaming business could look like as margins expand from 17% toward the 20%+ long-term target.
Netflix (NASDAQ:NFLX) trades at a P/E near 30 on $12.56 billion in Q2 revenue and a 33.4% operating margin. The gap between Netflix’s multiple and WBD’s 1.94x price-to-sales and 7.27x EV/EBITDA makes our target look conservative.
Company P/E Market Cap Warner Bros. Discovery n/a (neg. TTM) $70.2B Disney 15 $184.5B Netflix 30 $325.5B Warner Bros. Discovery Price Prediction 2026-2030 Our 24/7 Wall St. price target is $31.88, our recommendation is buy, and our confidence is moderate at 50%. The tipping factor is the Third Point disclosure alongside a streaming segment that posted a 63% ex-FX EBITDA jump.
The bull case strengthens if the Paramount transaction closes or a superior bid emerges. The bear case gains traction if linear ad revenue keeps sliding double digits and leverage refuses to come down.
Extending our model with current growth trajectories:
Year 24/7 Wall St. Price Target 2026 $31.88 2027 $35.00 2028 $38.50 2029 $41.00 2030 $43.20 These projections assume WBD executes its streaming margin ramp and either closes the Paramount deal or continues on the standalone split path. Meaningful upside or downside hinges on the merger outcome, NBA-related ad comparisons rolling off, and the 2027 film slate delivering.
Contact [email protected] for any questions or corrections.
Warner Bros. Discovery, Inc. (NASDAQ: WBD - Get Free Report) CEO David Zaslav sold 194,999 shares of the business's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $28.02, for a total value of $5,463,871.98. Following the completion of the transaction, the chief executive officer directly owned 6,807,934
Warner Bros. Discovery, Inc. (NASDAQ: WBD - Get Free Report) Director Fazal Merchant sold 71,539 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $27.75, for a total value of $1,985,207.25. Following the completion of the sale, the director owned 33,067 shares
Fazal F. Merchant, a Board of Directors member, sold 71,539 shares of Series A Common Stock in Warner Bros. Discovery, Inc. (WBD +0.86%) on August 13, 2026, as disclosed in an SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$2.0 millionShares sold71,539Post-transaction shares (directly held)33,067Post-transaction value$917,609.25Transaction value based on SEC Form 4 weighted average sale price ($27.75); post-transaction value based on August 13, 2026 market close ($27.75).
Key questionsWhat was the impact of this transaction on the director's total equity position?
Fazal F. Merchant divested 68% of his direct position in the company, leaving him with a residual holding of 33,067 shares. No indirect holdings were specified in this filing.How does the current market value of the remaining holdings compare to the transaction size?
The value of the remaining direct position is $917,609.25, while the shares sold in this transaction realized ~$2.0 million at the $27.75 per share execution price.What is the company's financial profile at the time of this transaction?
Warner Bros. Discovery reported trailing twelve-month revenue of $36.1 billion and a net loss of $3.2 billion.How does the transaction volume compare to the company's market capitalization?
The ~$2.0 million sale is small relative to the $69.6 billion market cap of Warner Bros. Discovery as of the August 13, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-13)$27.75Market Capitalization$69.6 billionRevenue (TTM)$36.1 billionNet Income (TTM)-$3.2 billionCompany SnapshotWarner Bros. Discovery operates a media and entertainment portfolio across diverse businesses, including studios (theatrical film production and television programming development), network (traditional broadcast and cable distribution), and direct-to-consumer (streaming platforms including HBO Max), generating revenue through content licensing, advertising, and subscription services.The company produces revenue through multiple monetization channels including theatrical box office distribution, licensing television content to internal networks and external partners, advertising-supported streaming services, subscription-based direct-to-consumer platforms, and traditional linear television broadcasting.Warner Bros. Discovery serves a global audience spanning theatrical moviegoers, television viewers across broadcast and cable networks, streaming subscribers, and media buyers seeking premium content licensing, with particular strength in North American and international markets.Warner Bros. Discovery is a major global media and entertainment conglomerate with substantial scale, commanding a market cap of $69.6 billion and generating $36.1 billion in annual revenue. The company is strategically positioned across the full entertainment value chain, from content creation through theatrical and television distribution to direct consumer engagement via streaming platforms.
Despite near-term profitability challenges reflected in trailing 12-month net losses, the company maintains competitive advantages through its extensive content library, established distribution relationships, and integrated streaming ecosystem serving both advertising-supported and subscription-based consumer segments.
What this transaction means for investorsThe Aug. 13 sale of Warner Bros. Discovery stock by Director Fazal Merchant came at a time when the company's anticipated merger with Paramount Skydance was delayed due to a lawsuit filed by a coalition of 12 U.S. states led by California. The states are challenging the company's acquisition on the grounds it violates antitrust laws. As a result, Paramount Skydance management has threatened to move its business out of California.
Merchant's disposition was substantial. He sold 68% of his direct holdings, leaving him with 33,067 shares. Whether this means he lacks faith in Paramount Skydance's ability to complete the merger is not known. However, Merchant plans to end his time on the Warner Bros. Discovery Board in 2027.
His impending departure and the uncertainty around when the Paramount Skydance deal will close may have been catalysts in Merchant's decision to sell the bulk of his directly held shares. The merger could be delayed as far out as June of 2027 unless a legal ruling is reached before then.
Robert Izquierdo has positions in Paramount Skydance and Warner Bros. Discovery. The Motley Fool has positions in and recommends Warner Bros. Discovery. The Motley Fool has a disclosure policy.
Disney's (DIS) CEO Josh D'Amaro told CNBC he isn't interested in spinning off ESPN, pushing back on investor calls to separate the sports business. He also said
Gerhard Zeiler, President, International at Warner Bros. Discovery, Inc. (WBD +0.36%), sold 591,038 shares of Series A Common Stock on August 10, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueTransaction value$16.0 millionShares sold591,038Post-transaction shares (directly held)537,436Post-transaction value$14.44 millionTransaction value based on SEC Form 4 weighted average sale price ($27.05); post-transaction value based on August 10, 2026 market close ($26.87).
Company snapshotSector: Communication ServicesIndustry: EntertainmentMarket capitalization: $67.9 billionTTM revenue: $36.1 billionTTM net income: -$3.2 billionEmployees: 35,500Warner Bros. Discovery, Inc. operates as a prominent global media and entertainment conglomerate. Its operations are structured across three key divisions: Studios, Network, and Direct-to-Consumer (DTC).
Key questionsHow does the execution price compare to the underlying exercise cost?
The shares were sold at a weighted average price of $27.05 per share, representing a premium over the $11.02 exercise price for the 591,038 options converted and sold during this transaction.What remains of the insider's equity position in the company?
Following the disposal, Gerhard Zeiler directly holds 537,436 shares of Series A Common Stock and 188,193 direct derivative securities, which include both vested and unvested awards.How did the stock perform leading up to this transaction?
As of the transaction date on August 10, 2026, the company had achieved a one-year total return of 146%, and the stock was priced at $27.07 as of the August 11, 2026 market close.What is the relative scale of this transaction compared to the company's financials?
The $16.0 million sale occurred at a time when the firm reported a trailing-twelve-month net loss of -$3.2 billion on $36.1 billion in total revenue.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$27.07Market Capitalization$67.9 billionRevenue (TTM)$36.1 billionNet Income (TTM)-$3.2 billionCompany SnapshotWarner Bros. Discovery operates a diversified media and entertainment portfolio spanning theatrical film production, television programming development, and direct-to-consumer streaming platforms, generating revenue across Studios, Network, and DTC segments.The company generates revenue through multiple channels including theatrical film distribution, licensing television content to internal networks and external partners, advertising-supported and subscription-based streaming services, and traditional broadcast and cable network operations.The company serves global audiences including theatrical moviegoers, television viewers across broadcast and cable networks, streaming subscribers, and content licensing partners, with a primary focus on English-language markets and international expansion.Warner Bros. Discovery is a major global media and entertainment conglomerate with a market capitalization of $67.9 billion and TTM revenues of $36.1 billion, positioning it among the largest content creators and distributors in the industry. The company leverages its extensive library of intellectual property and multi-platform distribution capabilities across theatrical, linear, and streaming channels to reach diverse consumer segments. Despite current net losses, the company's strategic focus on direct-to-consumer growth and content monetization across multiple platforms reflects its competitive positioning in the evolving media landscape.
What this transaction means for investorsAlthough Zeiler did not directly address the reasoning behind the options exercise, the company’s impending sale to Paramount Skydance may explain the timing of his recent stock transaction.
Assuming contractural obligations did not dictate this sale, It is likely the upcoming merger either forced this move or at least created enough uncertainty that it would be best to exercise his options.
The deal may have also made it a great time to sell shares in the entertainment stock without additional pressure. Since Paramount is paying a premium, that almost fueled the aforementioned 146% gains in the stock over the last year.
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Either way, it is typically not a great time to buy a stock once investors hear of a merger. Looking to the future means looking at Warner Bros Discovery as a part of Paramount, and we do not yet know exactly how that will affect the financial metrics of the combined entity.
Considering that level of uncertainty, investors are likely best off noting Zeiler’s options exercise and waiting until the merger closes before buying shares.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Warner Bros. Discovery. The Motley Fool has a disclosure policy.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Paramount Skydance CEO David Ellison, son of Oracle cofounder and Trump ally Larry Ellison, is running out of time to close the biggest media deal in a generation. With a Sept. 30 settlement deadline looming, a $7 million a day ticking fee set to begin after it passes, and 12 state attorneys general dug in for trial, Paramount is now floating the sale of CNN as a concession. It would not end the lawsuit.
The target is Warner Bros. Discovery (NASDAQ:WBD | WBD Price Prediction), CNN’s parent, in a deal Paramount values at $111 billion including roughly $30 billion of assumed WBD debt inherited from Discovery’s 2022 combination with WarnerMedia. WBD closed Tuesday at $27.65, giving it a market cap near $67.87 billion, and shares are up 146.43% over the past year on deal speculation. CNN has become the flashpoint: a newsroom whose ownership terrifies Democrats and whose editorial fate has become political currency.
The Lawsuit Is About Movies and Cable, Not CNN
The suit was filed by California Attorney General Rob Bonta and joined by 11 other Democratic state attorneys general, 12 states total. It argues the combined company would control roughly a third of theatrical film distribution and a third of basic cable channels. U.S. District Judge Araceli Martinez-Olguin scheduled trial for March 2, 2027, later than the November 2026 date Paramount had sought. It was Paramount Chief Legal Officer Makan Delrahim, speaking at a Politico “California Agenda” conference on Aug. 12, 2026, who said a CNN sale was “on the table.” “We’re not naive to know that politics does not exist,” Delrahim said. But as Seth Stern of the Freedom of the Press Foundation put it, “The Attorneys General’s lawsuit is an antitrust case that has nothing to do with CNN, so selling CNN would not resolve it.” A CNN divestiture might blunt political pressure from figures like Rep. Jamie Raskin. It would not touch the antitrust math.
Two Very Different Seven-Figure Numbers
The merger agreement contains a ticking fee: 25 cents per share per quarter paid to WBD shareholders starting after Sept. 30, or roughly $650 million a quarter. If the deal fails to close by June 4, 2027, Paramount owes WBD a flat $7 billion breakup fee and WBD’s board can walk. Running to trial could add an estimated $2.1 billion in ticking fees plus about $190 million in additional bridge-loan financing costs. Paramount reports $1.6 billion in cash and a $3.2 billion revolving credit line. Ellison has told senior executives he plans to begin relocating Paramount out of California on Oct. 1 if the suit is not settled by Sept. 30, a plan his board has approved, per Puck News. Bonta called it “another attempt to blackmail the state into letting an illegal deal through.”
Why CNN Promises Ring Hollow
Ellison published a New York Times op-ed pledging that “Great news organizations like CNN and CBS News are here to tell it straight down the middle.” Critics point to the CBS News precedent after Paramount Skydance’s acquisition roughly a year ago: the hiring of Bari Weiss as editor-in-chief, a shelved “60 Minutes” investigation into Trump’s deportation policy, and the departures of Anderson Cooper and Scott Pelley. Paramount also paid $16 million to settle a Trump lawsuit over a “60 Minutes” edit. On Aug. 12, Raskin sent Ellison a letter accusing him of “colluding” with Trump. The Wall Street Journal reported the same day that Paramount has discussed a CNN editorial oversight board. The deal has already cleared 65 foreign regulators, with UK approval carrying five-year editorial-independence guarantees.
Watch Sept. 30. Settle, offer up CNN as goodwill, or head toward a March 2027 trial with the meter running at $7 million a day. The lawsuit is about market share. The CNN offer is about optics. Ellison is trying to solve two problems with one asset, and only one of them is legally solvable that way.
Contact [email protected] for any questions or corrections.
E. Ohman J or Asset Management AB lowered its position in Warner Bros. Discovery, Inc. (NASDAQ: WBD) by 25.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 77,140 shares of the company's stock after selling 27,000 shares
Contravisory Investment Management Inc. lowered its holdings in Warner Bros. Discovery, Inc. (NASDAQ:WBD – Free Report) by 77.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 6,459 shares of the company’s stock after selling 22,177 shares during the quarter. Contravisory Investment Management Inc.’s holdings in Warner Bros. Discovery were worth $172,000 as of its most recent SEC filing.
Several other institutional investors have also recently made changes to their positions in the business. Vanguard Group Inc. grew its position in Warner Bros. Discovery by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 283,180,433 shares of the company’s stock worth $8,161,260,000 after purchasing an additional 1,966,278 shares during the period. Geode Capital Management LLC raised its stake in shares of Warner Bros. Discovery by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 66,597,575 shares of the company’s stock valued at $1,912,634,000 after buying an additional 1,028,346 shares during the last quarter. Norges Bank acquired a new position in shares of Warner Bros. Discovery in the 4th quarter valued at about $1,123,807,000. Morgan Stanley lifted its holdings in shares of Warner Bros. Discovery by 4.8% in the 4th quarter. Morgan Stanley now owns 27,462,742 shares of the company’s stock valued at $791,476,000 after buying an additional 1,254,813 shares during the period. Finally, Northern Trust Corp boosted its stake in shares of Warner Bros. Discovery by 3.9% in the third quarter. Northern Trust Corp now owns 23,496,725 shares of the company’s stock worth $458,891,000 after buying an additional 876,869 shares during the last quarter. Hedge funds and other institutional investors own 59.95% of the company’s stock.
Warner Bros. Discovery Price Performance NASDAQ:WBD opened at $26.87 on Tuesday. Warner Bros. Discovery, Inc. has a 52 week low of $10.76 and a 52 week high of $30.00. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.90. The stock has a market capitalization of $67.37 billion, a PE ratio of -21.16 and a beta of 1.55. The stock’s 50-day moving average price is $26.48 and its 200-day moving average price is $27.18.
Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.14) by $0.20. The company had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $9.25 billion. Warner Bros. Discovery had a negative return on equity of 8.91% and a negative net margin of 8.77%.Warner Bros. Discovery’s quarterly revenue was down 11.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.63 EPS. As a group, equities analysts expect that Warner Bros. Discovery, Inc. will post -1.08 EPS for the current fiscal year.
Wall Street Analysts Forecast Growth WBD has been the topic of several analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Warner Bros. Discovery in a report on Tuesday, August 4th. Zacks Research downgraded Warner Bros. Discovery from a “hold” rating to a “strong sell” rating in a report on Monday, July 27th. Seaport Research Partners lowered Warner Bros. Discovery from a “buy” rating to a “neutral” rating in a research report on Monday, July 27th. KeyCorp reaffirmed an “overweight” rating on shares of Warner Bros. Discovery in a research note on Friday, April 24th. Finally, UBS Group lifted their target price on shares of Warner Bros. Discovery from $30.00 to $31.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, Warner Bros. Discovery currently has a consensus rating of “Hold” and a consensus target price of $27.69.
View Our Latest Stock Report on WBD
Warner Bros. Discovery Profile (Free Report)
Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.
The company’s core activities include film and television production and distribution through units such as Warner Bros.
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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.
Plot Twist: 12 States Could Stall the Paramount-Warner Bros. Discovery Mega-MergerWarner Bros. Discovery NASDAQ: WBD said its streaming segment surpassed $3 billion in quarterly revenue for the first time in the second quarter of 2026, as HBO Max benefited from subscriber growth, engagement and advertising monetization.
President and Chief Executive Officer David Zaslav said streaming revenue growth accelerated during the quarter, with subscriber-related revenue up 10% excluding foreign exchange effects. The segment generated $512 million in adjusted EBITDA, representing an increase of more than 60% from the second quarter of 2025 and an adjusted EBITDA margin of nearly 17%.
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The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&AZaslav characterized the result as a continuation of HBO Max's transition from a mostly U.S.-focused streaming service that lost more than $2 billion in 2022 to a global growth asset. He said HBO programming has helped drive the service's performance internationally.
HBO Pipeline and Global Streaming Growth According to Zaslav, several HBO series have reached substantial global audiences in 2026. “The Pitt,” “A Knight of the Seven Kingdoms,” “House of the Dragon” and “Euphoria” have each averaged at least 25 million viewers per episode worldwide, with several programs surpassing 30 million average viewers.
Plot Twist: How the $110B Paramount-Warner Deal Rewrites MediaThe company highlighted upcoming programming including “The Gilded Age,” “Lanterns” and a “Harry Potter” series. Zaslav said Warner Bros. Discovery has greenlit “Harry Potter” for the next 10 consecutive years and plans to debut the series on Christmas Day. He also cited the return of “The White Lotus” and a content slate extending into 2027.
JB Perrette, CEO and President of Global Streaming and Games, said management views 2027 as potentially its strongest content year yet. He pointed to returning series including “The White Lotus,” “The Pitt” and “The Last of Us,” along with continued development of international originals.
Perrette said distribution revenue would have grown in the low teens excluding the impact of a previously disclosed related-party deal that the company was still lapping during part of the second quarter. He said the company expects the trajectory of distribution growth to remain solid through the rest of the year, supported by subscriber gains, advertising, engagement and pricing-related monetization efforts.
Management also emphasized the role of streaming bundles. Perrette said bundles with distributors and programmers have contributed to subscriber acquisition and retention, with “meaningful improvements in churn.” He cited offerings involving Disney in the U.S., Verizon, Netflix, MercadoLibre, Claro, Canal+, Sky, RTL+ and Viu. Warner Bros. Discovery expects 2026 to be its best year for retention and lower churn, he said.
Networks Show Sports, News Resilience Zaslav said the company’s networks continued to face broader industry headwinds but benefited from sports, news and entertainment programming. TNT Sports aired what he described as the highest-rated national championship basketball game ever, while Major League Baseball regular-season viewership was up more than 20% and NHL playoff viewership increased 50%.
CNN’s linear viewership rose 24% from the prior year during the quarter, while minutes spent across CNN platforms increased 19%, according to Zaslav. He also said Warner Bros. Discovery’s network brands accounted for four of the 10 top general-entertainment cable shows in the quarter.
Discovery’s “Shark Week” recorded its highest year-over-year growth in more than a decade during its first three nights, with Discovery ranking first among cable networks in prime time among viewers ages 25 to 54, Zaslav said.
Chief Financial Officer Gunnar Wiedenfels said linear advertising revenue was affected by the absence of NBA programming, which was a negative factor for ad revenue but a positive contributor to profits in the second quarter. In the U.S., he said advertising trends remained broadly consistent with the first quarter and late 2025. Internationally, however, second-quarter conditions were weaker than the first quarter amid consumer caution and geopolitical uncertainty.
Wiedenfels said visibility for the rest of the year remained limited and noted that the World Cup could affect viewership and advertising across markets for media companies not carrying the event.
Studio Strategy Focuses on Larger Film Output and Licensing Management acknowledged that a number of recent films underperformed expectations and that the studio business remains subject to volatility. Still, Wiedenfels reiterated Warner Bros. Discovery’s long-term target of more than $3 billion in adjusted EBITDA from the studio segment.
The company is producing 14 films in 2026 and plans to increase output to 19 films in 2027, Wiedenfels said. He said the larger slate is expected to include a mix of original movies, tentpole franchises, animation and films from the New Line label.
Zaslav said the 2027 lineup is expected to include “Lord of the Rings,” “Batman,” “Superman” and a sequel to “Minecraft.” The company also has “Cat in the Hat” and “Practical Magic” scheduled for the latter part of 2026.
Wiedenfels said the studio’s television production, consumer products, retail, tours and games operations are intended to reduce the volatility of theatrical results. He cited more than 80 Warner Bros. Television shows currently on air across platforms and said licensing and library revenue should benefit as subscription-video productions return to replenish the company’s content library.
Demand for library programming remains healthy, including for shows that are about a decade old, Wiedenfels said. He described the studio as a library-driven licensing business that is replenished by new content, while noting that Warner Bros. Discovery increasingly keeps programming for internal use across HBO Max and its linear networks.
The company also cited games as a future opportunity following a portfolio restructuring. Wiedenfels said “LEGO Batman” is due to launch this year, while a second installment of “Hogwarts Legacy” is the major title ahead.
Paramount Skydance Transaction Warner Bros. Discovery did not take analyst questions regarding its proposed transaction with Paramount Skydance. Zaslav said the company remains confident the agreed-upon sale will be completed and said employees remain focused on improving operating performance while the transaction is pending.
About Warner Bros. Discovery (NASDAQ:WBD)Warner Bros. Discovery NASDAQ: WBD is a global media and entertainment company formed when WarnerMedia and Discovery, Inc combined their businesses in 2022. Headquartered in New York City, the company assembles a broad portfolio of film and television production, linear and cable networks, streaming services and consumer distribution operations. Its assets span well-known studio brands, premium scripted and unscripted programming, news and factual entertainment, and licensed franchise properties.
The company's core activities include film and television production and distribution through units such as Warner Bros.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Warner Bros. Discovery faces a tough outlook due to weak fundamentals and merger uncertainty. The media company reported Q2'26 saw an 11.3% revenue decline, with content and advertising revenues sharply down, despite modest EPS and EBITDA resilience. The Paramount merger is stalled by regulatory lawsuits, offering ~17% upside if closed but exposing investors to significant downside risk.
