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.
Streaming Segment Revenue: Exceeded $3 billion in Q2 2026, a first for the company.Streaming Subscriber-Related Revenue Growth: Accelerated 200 basis points seq
Warner Bros. Discovery CEO David Zaslav says staffers are working “extremely hard” and staying focused despite uncertainty about the fate of the company’s pending merger with Paramount.
Speaking to Wall Street analysts on the company’s second-quarter earnings call, Zaslav said he had assumed “it was going to be quite challenging” for employees to tune out the noise and maintain morale. But during visits in recent weeks to various European offices, Zaslav, said, he was struck by the “work ethic” he encountered.
“The overall culture of this company and the work ethic of the company has been inspiring,” Zaslav said. “The focus has been that this is a great company, and that how do we take advantage of every day we’re here and try and focus on the best performance possible, but also this idea of, what stories will we tell?”
Announced in February, the $110 billion merger drew lawsuits last month from attorneys general of 12 states as well as the Writers Guild of America. The suits contend the transaction violates antitrust laws, with the WGA also arguing it will harm entertainment workers. A judge this week set a March trial date, leaving both companies to soldier on in the meantime, barring an out-of-court settlement.
RELATED: Paramount’s Takeover Of Warner Bros. Cleared By UK Authorities
“We’ve been trying to drive the value of the company to deliver to PSKY and to [CEO David Ellison] the best company possible,” Zaslav replied when asked about the potential scenario of the deal falling apart and WBD resuming its prior plan to split into two companies. “The company is performing at a very high level. And we have every expectation that the transaction will close, and that the company will be performing even better than the plan that we presented to PSKY when we did our deal.”
Prior to his comments, WBD reported lackluster results for the second quarter, with revenue sandbagged by summer movie flop Supergirl and the lack of NBA telecasts.
If the Paramount deal does end up being completed, it will give Warner its fourth corporate owner in the past decade. Successive acquisitions by AT&T and Discovery Communications have not been fruitful despite the company controlling prestige assets like Warner Bros., HBO and CNN.
Recent media reports have indicated that executives at WBD, as is often the case at companies about to be acquired, are exploring their career options rather than waiting and taking their chances with new management. In what many observers considered a warning shot, the company last month sued Amazon for allegedly poaching HBO marketing executive Pia Barlow. The lawsuit accused the tech giant of “hurriedly seeking to pirate away a number of contracted employees” from WBD.
“It has been challenging, and our focus has been, how do we drive a stronger company, meet and exceed our business plan, and deliver a stronger and higher-growth company, to PSKY and David,” Zaslav said on the earnings call. He added that he was impressed by “the way this company is performing, and you look at the close to 40,000 people coming in every day.”
It is “unusual,” Zaslav continued, for energy levels to sustain during a period of corporate tumult. “We’re lucky, and I think that we have an unusual set of employees that really love these assets. As long as we’re here, we’re gonna be working hard every day.”
Warner Bros. Discovery (WBD - Free Report) came out with quarterly earnings of $0.06 per share, beating the Zacks Consensus Estimate of a loss of $0.13 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +146.15%. A quarter ago, it was expected that this operator of cable TV channels such as TLC and Animal Planet would post a loss of $0.1 per share when it actually produced a loss of $1.17, delivering a surprise of -1070%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Warner Bros. Discovery, which belongs to the Zacks Broadcast Radio and Television industry, posted revenues of $8.72 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 6.19%. This compares to year-ago revenues of $9.81 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Warner Bros. Discovery shares have lost about 9.9% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Warner Bros. Discovery?While Warner Bros. Discovery has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Warner Bros. Discovery was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.01 on $9.04 billion in revenues for the coming quarter and -$1.08 on $36.93 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Broadcast Radio and Television is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Bilibili (BILI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.
This Chinese video sharing website is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +27.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bilibili's revenues are expected to be $1.16 billion, up 13.4% from the year-ago quarter.
Warner Bros. Discovery Inc. reported a drop in sales due to the loss of a deal to carry National Basketball Association games and its summer movie lineup has not performed well.
Warner Bros. Discovery (WBD - Free Report) reported $8.72 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 11.2%. EPS of $0.06 for the same period compares to $0.63 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $9.29 billion, representing a surprise of -6.19%. The company delivered an EPS surprise of +146.15%, with the consensus EPS estimate being -$0.13.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Warner Bros. Discovery performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- Global Linear Networks: $3.99 billion compared to the $4.19 billion average estimate based on five analysts. The reported number represents a change of -16.9% year over year.Revenues- Studios: $2.33 billion compared to the $3.04 billion average estimate based on five analysts. The reported number represents a change of -38.8% year over year.Revenues- Streaming: $3.08 billion versus $3.08 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change.Revenues- Inter-segment eliminations: $-682 million compared to the $-974.93 million average estimate based on four analysts. The reported number represents a change of -57% year over year.Revenues- Content: $1.83 billion versus $2.38 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -26% change.Revenues- Distribution: $4.95 billion compared to the $5.01 billion average estimate based on three analysts. The reported number represents a change of +1.3% year over year.Revenues- Other: $215 million versus $301.79 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -10.4% change.Revenues- Advertising: $1.72 billion compared to the $1.9 billion average estimate based on three analysts. The reported number represents a change of -22.2% year over year.Revenues- Distribution- Global Linear Networks: $2.27 billion versus $2.29 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -8.6% change.Revenues- Content- Global Linear Networks: $261 million compared to the $236.48 million average estimate based on two analysts. The reported number represents a change of -9.1% year over year.Revenues- Other- Global Linear Networks: $36 million versus the two-analyst average estimate of $84.29 million. The reported number represents a year-over-year change of -58.1%.Revenues- Advertising- Streaming: $306 million versus the two-analyst average estimate of $308.52 million. The reported number represents a year-over-year change of +8.5%.View all Key Company Metrics for Warner Bros. Discovery here>>>
Shares of Warner Bros. Discovery have returned -0.7% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
Warner Bros. Discovery, Inc. (WBD) Q2 2026 Earnings Call August 6, 2026 8:00 AM EDT
Company Participants
Peter Lee - Senior Vice President of Investor Relations
David Zaslav - President, CEO & Director
Jean-Briac Perrette - President and CEO of Global Streaming & Games
Gunnar Wiedenfels - Senior EVP & CFO
Conference Call Participants
Steven Cahall - Wells Fargo Securities, LLC, Research Division
Richard Greenfield - LightShed Partners, LLC
Sean Diffley - Morgan Stanley, Research Division
Jessica Reif Cohen - BofA Securities, Research Division
Presentation
Operator
Ladies and gentlemen, welcome to the Warner Bros. Discovery Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Additionally, please be advised that today's conference call is being recorded. I would like to hand the conference over to Mr. Peter Lee, Senior Vice President, Investor Relations. You may begin.
Peter Lee
Senior Vice President of Investor Relations
Good morning, and thank you for joining us for our Q2 2026 earnings call. Joining me today from Warner Bros. Discovery's management is David Zaslav, President and Chief Executive Officer; Gunnar Wiedenfels, our Chief Financial Officer; and JB Perrette, CEO and President, Global Streaming and Games. This morning, we issued our earnings release, shareholder letter and trending schedule, and these materials can be found on our website at ir.wbd.com.
Today's presentation will include forward-looking statements that we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements about the benefits of the proposed transaction between Warner Bros. Discovery and Paramount Skydance, future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts.
Such statements are based upon the current beliefs and expectations of WBD's management and are subject to significant risks and uncertainties outside of our control that could cause
, /PRNewswire/ -- Warner Bros. Discovery, Inc. (the "Company") (Nasdaq: WBD) today reported financial results for the quarter ended June 30, 2026. Please visit the "Investor Relations" section of the Company's website at https://ir.wbd.com/ to view the earnings materials.
The Company will conduct a conference call today at 8:00 a.m. ET to discuss the results. A link to the live webcast of the conference call will be available in the "Investor Relations" section of the Company's website at https://ir.wbd.com/.
A replay of the audio webcast will be available in the "Investor Relations" section of the Company's website for twelve months.
About Warner Bros. Discovery:
Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of branded content across television, film, streaming and gaming. Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, HBO Max, discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, Animal Planet, Science Channel, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Pictures Animation, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more information, please visit www.wbd.com.
A drone view shows The Warner Bros. studio lot in Burbank, California, U.S., December 8, 2025. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab
Aug 6 (Reuters) - Warner Bros Discovery (WBD.O), opens new tab missed second-quarter revenue expectations on Thursday, hurt by lackluster box-office performance and soft advertising sales due to the absence of NBA games.
Studio revenue slumped 39%, with releases including "Mortal Kombat II" and "Supergirl" failing to replicate the blockbuster success of last year's top grosser "A Minecraft Movie" and "Sinners".
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Warner's film slate is weighted toward the second half of the year, with major releases such as "Digger" and "Dune: Part Three" expected to boost box-office performance.
Britain's Competition and Markets Authority cleared Warner's $110 billion merger with Paramount on Thursday saying it was unlikely to harm competition in the country.
Still, the merger remains tied up in court, with California and 11 other states seeking to block it on antitrust grounds. Paramount has agreed to pause the deal until June 2027, while a federal trial is set for March 2027.
Speaking on a post-earnings call, the CEOs of both companies expressed confidence that the deal would be completed.
NBA LOSS HITS ADS, STREAMING REMAINS BRIGHT SPOTThe absence of the National Basketball Association games broadcasts this year, coupled with declines in domestic linear TV audiences, drove a 22% drop in advertising revenue for Warner Bros during the second quarter.
Higher energy prices linked to conflicts in Iran and Ukraine weighed on international advertiser spending. Warner said the 2026 FIFA World Cup reduced its share of viewers and advertising revenue in several markets during June and July.
While revenue at the CNN-owned networks division fell 17%, a 23% decline in operating expenses due to the absence of costs tied to NBA rights and lower content spending helped Warner post a surprise quarterly profit of 6 cents per share.
Analysts polled by LSEG had expected a loss of 13 cents.
Warner's streaming business, which is central to the deal, remained a bright spot in the second quarter with HBO Max's international expansion and original content like "The Pitt" driving revenue up 10%.
The combined HBO Max and Paramount+ service is expected to give greater scale to compete with streaming giants Netflix and Disney.
Warner Bros Discovery reported revenue of $8.72 billion in the second quarter, well below the LSEG-compiled estimate of $9.29 billion.
Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Warner Bros. Discovery fell short of Wall Street expectations in the second quarter, as Supergirl and the lack of the NBA dragged total revenue down 11% to $8.7 billion.
Analysts had projected $9.2 billion in revenue. Diluted earnings per share of 6 cents topped estimates of a loss of 10 cents a share.
The company reported the quarterly financials with its $110 billion merger with Paramount in legal limbo. The attorneys general of 12 states, as well as the Writers Guild of America, have filed a lawsuit seeking to block the deal on antitrust grounds. A trial has been scheduled for March 2027.
Streaming proved a bright spot, with total revenue up 10% to $3.1B and EBITDA jumping 75% to $512 million. Flagship streamer HBO Max, which has recently expanded to key international territories, was paced by titles like Euphoria, House of the Dragon, Hacks and The Pitt.
The studio division faced tough comparisons with the year-ago period, which featured hits like A Minecraft Movie, Sinners, and Final Destination Bloodlines. Revenue tumbled 39% to $2.3 billion and EBITDA plummeted 89% to $96 million. Supergirl grossed just $126 million worldwide, the lowest for any DC release since Catwoman in 2004.
Total advertising revenue plunged 22% from the year-ago period to settle at $1.7 billion. The main culprit was the absence of the NBA. After nearly 40 years of broadcasting the league’s games, WBD did not reach a deal to extend its rights, with NBCUniversal taking its place as a primary partner.
The ad story marred the quarterly performance of the Global Linear Networks division, whose revenue slid 17% to $3.99 billion. Adjusted EBITDA was off 4% to $1.4 billion.
The quarterly numbers followed Tuesday’s earnings report from Paramount, which featured some updated comments about the WBD merger. Paramount CEO David Ellison said he is “absolutely open” to discussing a potential settlement of the antitrust suit, but he also said the company believes it “will win in court.”
Warner Bros. Discovery on Thursday said it saw record-breaking revenue growth in its streaming segment, anchored by HBO Max, ahead of increased scrutiny over its proposed merger with Paramount Skydance.
The media company said in its second-quarter earnings report that its streaming segment surpassed $3 million in revenue, marking a 10% increase from the year prior, with more than $500 million in adjusted earnings before interest, taxes, depreciation, and amortization.
"For all that's changing in how people consume entertainment, we have held firm to our conviction that there is no substitute for creative excellence and quality storytelling, and it's driving strong results," CEO David Zaslav said on a call with analysts. "Nowhere is it more evident than our streaming business, where the breadth, artistry and cultural influence of HBO programming across the globe is translating into great financial progress for HBO Max as a streaming offering."
The company said the gains in streaming were reflective of growth in new markets for HBO Max as well as its content slate, including popular shows like "Euphoria," "House of the Dragon" and "The Pitt."
The second half of the year is expected to be strong with additions like "Harry Potter" and "Gilded Age," the company added.
Zaslav said the company has "succeeded in making HBO Max a highly valuable global streaming service."
Warner Bros. also said advertising revenue for its streaming business increased 9%, primarily due to an increase in global ad-lite subscribers. However, following a new media rights package that no longer includes NBA games for the streaming service, Warner Bros. said the lack of basketball advertising negatively impacted the year-over-year growth rate by 16%, excluding the impact of foreign currency exchanges.
Paramount CEO David Ellison said in May that he plans to merge HBO Max and Paramount+ into one streaming service under his proposed acquisition of the the company. That merger has been held up by a challenge by state attorneys general and will go to trial in March.
The concept of a combined streaming business drew early criticism from lawmakers who deemed the deal anticompetitive, though Paramount and WBD say they need scale to compete with the industry giants.
Paramount+ had roughly 81 million global subscribers as of the end of its most recent quarter. A combined Paramount+ and HBO Max service would have about 200 million subscribers, Ellison previously said.
Ellison added he wouldn't disrupt the HBO brand and that "HBO should stay HBO."
Zaslav added on the call with analysts that CNN linear viewership increased 24% over the previous year, with minutes spent across all CNN platforms increasing 19%.
"In a turbulent geopolitical moment, the quality, trustworthiness and reliability of CNN's journalism again proved itself," he said.
For its second quarter, Warner Bros. Discovery reported revenue of $8.72 billion, a decline of 11% from the year-ago period and falling short of Wall Street expectations of $9.29 billion, according to LSEG.
WBD posted net income attributable to the company of $149 million, or 6 cents per share, compared with $1.58 billion, or 63 cents per share, in the same quarter a year prior. The company said that drastic decrease was the result of pre-acquisition adjustments to the value of intangible assets as well as restructuring costs.
Adjusted EBITDA for the quarter was $1.88 billion, compared with $1.95 billion in the year-ago period.
Key Takeaways WBD is expected to post Q2 revenues of $9.29 billion and a loss of 13 cents per share.NBA rights losses may cut streaming ad revenues 16% and linear-network ad revenues 20% ex-FX.HBO Max's premium slate may boost engagement, retention and subscriber-related revenues. Warner Bros. Discovery (WBD - Free Report) is slated to report second-quarter 2026 earnings on Aug. 6.
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $9.29 billion, suggesting a 5.3% year-over-year decline.
The consensus mark for the second-quarter bottom line is currently pegged at a loss of 13 cents per share, widened by a penny over the past 30 days. This also marks a sharp decline from the year-ago quarter's earnings of 63 cents per share.
In the last reported quarter, Warner Bros. Discovery delivered a negative earnings surprise of 1,070%. The company’s earnings beat the Zacks Consensus Estimate once in the trailing four quarters and missed the same in the remaining three, with an average negative surprise of 306.56%.
Let’s see how things have shaped up for WBD before the announcement.
What Investors Should Watch Ahead of WBD's Q2 ResultsWarner Bros. Discovery is expected to face a meaningful advertising headwind in the second quarter of 2026 due to the absence of NBA broadcasting rights. Management indicated that the loss of NBA programming will create a 16% ex-FX headwind to Streaming advertising revenues and a 20% ex-FX negative impact to Global Linear Networks advertising revenues in the quarter under review. While certain sports events will provide partial offsets, the NBA has historically been one of WBD's largest advertising drivers, making its absence likely to have pressured year-over-year advertising growth and overall revenue performance.
The company's Global Linear Networks business continues to face structural pressure from declining pay-TV subscriptions. In the first quarter, domestic linear pay-TV subscribers fell roughly 10%, contributing to weaker distribution revenues. Warner Bros. Discovery indicated that underlying domestic delivery trends in the second quarter would remain broadly similar to the prior quarter, suggesting these secular declines are likely to continue weighing on affiliate-fee growth, advertising revenues and network profitability during the quarter under review.
The company continues to incur restructuring, separation and transaction-related expenses as it progresses toward its planned merger with Paramount Skydance. WBD anticipates additional cash expenses related to the transaction even before the deal is finalized; this means that, despite improvements in core business operations, these expenses are likely to continue weighing on the company's reported earnings and free cash flow in the quarter to be reported.
Offsetting these headwinds, WBD entered the second quarter with a compelling HBO Max content lineup, including the successful return of Euphoria, continued momentum from The Pitt and the June release of House of the Dragon Season 3. The company also highlighted an attractive pipeline featuring Stuart Fails to Save the Universe, Lanterns and Harry Potter and the Philosopher's Stone extending into the second half of the year. This steady flow of premium content is designed to boost viewer engagement, improve retention and attract new subscribers, supporting higher subscriber-related revenues. As a result, the streaming business is expected to have benefited from stronger user activity and monetization in the quarter under review.
What Our Model Says About WBD StockOur proven model does not conclusively predict an earnings beat for WBD this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold) increases the odds of an earnings beat. But that is not the case here, as you can see below.
WBD currently has an Earnings ESP of -85.14% and a Zacks Rank #5 (Strong Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to ConsiderHere are some companies worth considering, as our model shows that they have the right combination of elements to beat on earnings in their upcoming releases:
Versant Media Group, Inc. (VSNT - Free Report) currently has an Earnings ESP of +6.01% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
VSNT shares have gained 23.7% in the past six months. VSNT is set to report second-quarter 2026 results on Aug. 6.
Corsair Gaming (CRSR - Free Report) currently has an Earnings ESP of +9.09% and a Zacks Rank #2.
CRSR shares have surged 127.8% in the past six months. CRSR is slated to report second-quarter 2026 results on Aug. 6.
Six Flags Entertainment Corporation (FUN - Free Report) currently has an Earnings ESP of +6.90% and a Zacks Rank #3.
FUN shares have returned 1.6% in the past six months. FUN is set to report its second-quarter 2026 results on Aug. 6.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
David Ellison Says Paramount-Warner Bros. Discovery Scrutiny Is About ‘Whether I Can Be Trusted’ With CNN Ty Roush is a breaking news reporter based in New York City.
Aug 04, 2026, 08:31am EDT
ToplineParamount Skydance CEO David Ellison on Tuesday argued an antitrust lawsuit seeking to end his firm’s takeover of Warner Bros. Discovery is because of his politics and pending ownership of CNN, after Paramount agreed to push back its deal to 2027 following a legal challenge by a dozen states.
Paramount Skydance said it would push back its merger until 2027.
Variety via Getty Images
Key Facts“I believe this fight is not really about market share,” Ellison wrote in an op-ed for The New York Times, adding, “The issue is whether I can be trusted as a steward of Warner’s CNN.”
In its upcoming report, Warner Bros. Discovery (WBD - Free Report) is predicted by Wall Street analysts to post quarterly loss of -$0.13 per share, reflecting a decline of 120.6% compared to the same period last year. Revenues are forecasted to be $9.29 billion, representing a year-over-year decrease of 5.3%.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Warner Bros. Discovery metrics that are commonly tracked and forecasted by Wall Street analysts.
The collective assessment of analysts points to an estimated 'Revenues- Global Linear Networks' of $4.19 billion. The estimate indicates a year-over-year change of -12.8%.
The consensus among analysts is that 'Revenues- Studios' will reach $3.04 billion. The estimate indicates a change of -19.9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues- Streaming' will likely reach $3.08 billion. The estimate points to a change of +10.3% from the year-ago quarter.
The average prediction of analysts places 'Revenues- Content' at $2.38 billion. The estimate points to a change of -3.9% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenues- Distribution' should arrive at $5.01 billion. The estimate suggests a change of +2.5% year over year.
Analysts predict that the 'Revenues- Other' will reach $301.79 million. The estimate indicates a change of +25.7% from the prior-year quarter.
It is projected by analysts that the 'Revenues- Advertising' will reach $1.90 billion. The estimate indicates a change of -14.1% from the prior-year quarter.
Analysts forecast 'Revenues- Advertising- Global Linear Networks' to reach $1.53 billion. The estimate indicates a year-over-year change of -21.6%.
According to the collective judgment of analysts, 'Revenues- Distribution- Global Linear Networks' should come in at $2.29 billion. The estimate indicates a change of -7.5% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- Content- Global Linear Networks' reaching $236.48 million. The estimate indicates a year-over-year change of -17.6%.
The consensus estimate for 'Revenues- Other- Global Linear Networks' stands at $84.29 million. The estimate suggests a change of -2% year over year.
Analysts expect 'Revenues- Advertising- Streaming' to come in at $308.52 million. The estimate indicates a year-over-year change of +9.4%.
View all Key Company Metrics for Warner Bros. Discovery here>>>
Warner Bros. Discovery shares have witnessed a change of -0.7% in the past month, in contrast to the Zacks S&P 500 composite's +0.2% move. With a Zacks Rank #5 (Strong Sell), WBD is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The market expects Warner Bros. Discovery (WBD - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis operator of cable TV channels such as TLC and Animal Planet is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of -120.6%.
Revenues are expected to be $9.29 billion, down 5.3% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Warner Bros. Discovery?For Warner Bros. Discovery, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -85.14%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Warner Bros. Discovery will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Warner Bros. Discovery would post a loss of$0.1 per share when it actually produced a loss of -$1.17, delivering a surprise of -1,070.00%.
Over the last four quarters, the company has beaten consensus EPS estimates just once.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Warner Bros. Discovery doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Warner Bros. Discovery (WBD +0.12%) trades near $26 as of this writing. Paramount Skydance holds a signed agreement to pay $31.00 per share in cash for the company. That gap -- about $5 per share, or roughly 20% -- has nothing to do with box-office results, streaming subscribers, or cable's decline. It is a courtroom discount.
Anyone buying the stock today should be clear about what they're purchasing. It isn't really a media business right now. It's a claim on $31 in cash, discounted by the odds that 12 state attorneys general convince a judge to kill the deal that produces it.
Image source: Getty Images.
What the paper says The transaction itself is about as settled as these things get. Paramount agreed in February to acquire Warner Bros. Discovery for $31.00 per share, valuing the company at $81 billion in equity and $110 billion including debt. Both boards approved it, and the deal was originally expected to close in the third quarter of this year.
The regulators have largely cooperated. The Justice Department cleared the deal in June, concluding the combination was unlikely to harm competition or consumers. And on July 22, the European Commission approved it as well, on the condition that Paramount unwind a European film distribution venture with Universal and stay out of similar arrangements for a decade.
The unresolved piece is the states. Twelve of them, led by California, sued in mid-July under federal antitrust law. Their argument is that combining two of Hollywood's major studios would reduce competition in film and raise prices for consumers. The Writers Guild of America filed a similar challenge of its own. A federal judge in California, Araceli Martinez-Olguin, has the merger frozen while the cases proceed, and the parties are due to propose a trial schedule by July 31.
And on Friday, July 24, the timeline got a hard boundary. Paramount agreed the merger will not close before June 1, 2027, or five days after a ruling on the merits, whichever comes first. Paramount called the arrangement a "significant win" that gives it a direct path to trial.
The practical translation for shareholders: the money could arrive within weeks of a ruling if the states lose, in about a year if the case runs long, or never if they win.
What holders collect, and what they risk The waiting, at least, is compensated. If the deal hasn't closed by Sept. 30, Warner Bros. Discovery shareholders begin accruing a ticking fee of $0.25 per share each quarter, or roughly $650 million a quarter from Paramount. Run the timeline all the way to June 2027, and the fee adds about another $0.65 per share on top of the $31.
So the winning branch of this bet pays about $5 to $6 per share from today's price, a return north of 20%. The only open question on that branch is how many quarters the collection takes.
The losing branch is harder to value, and that's the problem. Warner Bros. Discovery traded as low as $10.76 within the past year -- before deal speculation swept the stock upward. A broken deal wouldn't necessarily send shares back there. The company would still own a major studio, HBO Max, and the networks business it had planned to separate. And the assets have already drawn more than one buyer: Netflix had a signed agreement of its own for Warner's studio and streaming assets until Paramount's all-cash bid was judged superior in February. A collapse wouldn't automatically bring Netflix back, but it wouldn't leave the company unwanted, either.
Still, the operating results offer little support at today's price. Trailing-12-month revenue of about $37 billion is down 3% year over year, and the company has lost money over that stretch. Second-quarter results arrive Aug. 6, and they may serve mostly as a reminder that there is a shrinking media business under the ticker, whatever the courtroom decides.
Today's Change
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That asymmetry is the whole investment. Win, and the return is capped near 20% plus fees. Lose, and the stock has to rediscover a stand-alone story at some meaningfully lower price.
For investors who actually want to own media assets, this ticker doesn't currently offer that. The lawsuit owns the story until a judge rules. And for investors tempted by the spread, the honest description of the job is underwriting antitrust litigation. Warren Buffett's old test for bets like this started with one question: How likely is it that the promised event will actually happen? His list also included what happens when a deal dies on antitrust action, which is exactly the outcome nobody in this fight can predict with confidence.
I'd pass. If the states somehow win and the stock breaks lower, Warner Bros. Discovery becomes a media bet again. At that point, the price would finally reflect it.
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.
Over the past month, shares of this operator of cable TV channels such as TLC and Animal Planet have returned -3.9%, compared to the Zacks S&P 500 composite's +1.9% change. During this period, the Zacks Broadcast Radio and Television industry, which Warner Bros. Discovery falls in, has lost 0.4%. The key question now is: What could be the stock's future direction?
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 EstimatesRather 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.
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 a loss of $0.13 per share for the current quarter, representing a year-over-year change of -120.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +460%.
The consensus earnings estimate of -$0.97 for the current fiscal year indicates a year-over-year change of -434.5%. This estimate has changed +9.6% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.09 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 -400%.
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 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.
For Warner Bros. Discovery, the consensus sales estimate for the current quarter of $9.29 billion indicates a year-over-year change of -5.3%. For the current and next fiscal years, $36.93 billion and $37.9 billion estimates indicate -1% and +2.6% changes, respectively.
Last Reported Results and Surprise HistoryWarner Bros. Discovery reported revenues of $8.89 billion in the last reported quarter, representing a year-over-year change of -1%. EPS of -$1.17 for the same period compares with -$0.18 a year ago.
Compared to the Zacks Consensus Estimate of $8.93 billion, the reported revenues represent a surprise of -0.42%. The EPS surprise was -1070%.
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.
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.
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 C on this front, indicating that it is trading at par with 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.
The Ellisons may still get Warner Bros. But it won't be easy.
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Chief Correspondent covering media and technology
Larry Ellison backed the deal that let his son David buy Paramount this year. They were set to acquire Warner Bros. Discovery in the coming weeks — but a court challenge from the state of California means all bets are off. Eric Charbonneau/Getty Images for The Hollywood Reporter Up until last week, just about everyone in Hollywood and Wall Street believed that Larry and David Ellison's Paramount was going to own Warner Bros. Discovery in the near future.
Now an antitrust lawsuit brought by California's attorney general and other state AGs has thrown that into doubt. The Paramount-WBD deal is on hold for months, or maybe more, while the case works its way through the legal system.
There is a lot of spin and posturing around this one, with good reason: There's a lot of uncertainty about whether the Ellisons will eventually get what they want.
I asked Bloomberg's Lucas Shaw, the well-sourced reporter who has been covering the ins and outs of the deal for nearly a year, to walk me through what happens next: Could this get settled before a court verdict, and what would that look like? How might this November's election results affect all of this? And what does this mean for Netflix, which was going to buy WBD before it walked away?
You can hear my entire conversation with Lucas, which also tackles Netflix's growth and engagement issues, and the very mixed state of Hollywood's theatrical business, in my Channels podcast.
The following is an edited excerpt of our conversation:
Peter Kafka: What are the odds that this lawsuit gets settled before a verdict? That the Ellisons just say to the states, "Look, we'll give you something. It's more than we wanted to give you." And then the states say, "OK, this deal can go through."
Lucas Shaw: People thought that they would likely find some settlement before this trial started. That was the prevailing wisdom: That the states were fighting the deal because the Trump DOJ was not. And that they were unlikely to win or actually block the deal, but that they could garner some concessions.
The last month has really damaged the conventional wisdom. A lot of people, myself included, have realized that maybe they underestimated the forces fighting against the deal.
I was in that group too. I thought well, the Ellisons are gonna get this done one way or another. Some combination of brute force and maybe political favors. They really want it, and they are willing to spend an enormous amount of money.
They were willing to outbid Netflix, a much larger, much wealthier company. They spent months fighting the [Netflix-WBD deal], which at the time seemed like spoiled grapes. But they ended up playing a very canny political game, applying a lot of pressure on both Netflix and Warner Bros., to eventually get it.
And while I thought that the states were going to fight against the deal, I assumed that eventually the Ellisons would prevail, which of course, they may still.
In terms of what they could offer: One of the reasons why a settlement may prove difficult — and of course this is all posturing and bargaining, so maybe it's easier than we think — is that the Ellisons have been offering behavioral remedies. And the states are saying behavioral remedies don't really work.
They want structural remedies. So that would mean Paramount and Warner Brothers agreeing to sell things or divest things as part of this deal. There are assets that Paramount and Warner Brothers could divest, and it wouldn't really hurt the combined company that much. But they have not shown a willingness to get rid of things.
Democrats could take back all or part of Congress in November. Is that a worry for Paramount?
Yes, but a small one. There was never a lot that legislators could do about this deal. But especially now that the federal government has blessed it, we're really in the realm of the courts. I guess it could go to the Supreme Court.
A Democrat-controlled House will be annoying [for the Ellisons], especially given the belief that David Ellison and the current leadership of Paramount has made changes to CBS News that have made them more friendly to the Trump administration. And they're going to get CNN as part of this.
So there will be a lot of scrutiny of whatever happens with the news organizations. But that is separate from the deal itself.
What does Netflix think about this? Do they think there's now an opportunity for them to end up with Warners after all?
I think for now they're just sitting there with a big bucket of popcorn.
Look: If this deal falls apart, would Netflix look at it again? Sure. I interviewed Netflix co-CEO Ted Sarandos after his deal fell apart, and he said something like, "Maybe this'll come around again."
But their investors hated the deal. Their stock price has only continued to go down since then. So the threshold to reengaging on any deal like that would be really high.
And if we're being honest about what's happening with Paramount and the Ellisons — unless there's some dramatic change of heart for David Ellison, he's not giving up on this deal very easily.
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Peter Kafka You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor.
Warner Bros. Discovery (WBD - Free Report) ended the recent trading session at $25.28, demonstrating a -1.9% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a rise of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.18%.
The stock of operator of cable TV channels such as TLC and Animal Planet has fallen by 3.63% in the past month, lagging the Consumer Discretionary sector's loss of 1.75% and the S&P 500's gain of 0.77%.
The investment community will be paying close attention to the earnings performance of Warner Bros. Discovery in its upcoming release. On that day, Warner Bros. Discovery is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 119.05%. Our most recent consensus estimate is calling for quarterly revenue of $9.33 billion, down 4.95% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$1.07 per share and revenue of $36.96 billion, which would represent changes of -468.97% and -0.91%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Warner Bros Discovery. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 past month, the Zacks Consensus EPS estimate has shifted 0.35% downward. Currently, Warner Bros. Discovery is carrying a Zacks Rank of #4 (Sell).
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Warner Bros. Discovery (WBD, Financials), the media and entertainment company behind HBO, CNN and Warner Bros. studios, sued Amazon over allegations that it poa
Diane King Hall discusses what's driving Jefferies to upgrade Ford (F) and General Motors (GM) to start a busy trading week. Also on her radar: Seaport Securities downgrading Warner Bros.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying WBD stock? Here’s what analysts think:
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Warner Bros. Discovery filed a lawsuit this week accusing Amazon of interference with contractual relations, breach of contract, and unfair competition.
, /PRNewswire/ -- Warner Bros. Discovery, Inc. (the "Company") (Nasdaq: WBD) today announced that it will report its second quarter 2026 results on Thursday, August 6, 2026 before the market opens. Links to the live webcast of the conference call as well as the earnings materials will be available in the "Investor Relations" section of the Company's website at https://ir.wbd.com/ at approximately 7:00 a.m. ET. The Company will host a conference call at 8:00 a.m. ET that same day to discuss the results.
A replay of the webcast will also be available in the "Investor Relations" section of the Company's website for twelve months.
About Warner Bros. Discovery:
Warner Bros. Discovery is a leading global media and entertainment company that creates and distributes the world's most differentiated and complete portfolio of branded content across television, film, streaming and gaming. Warner Bros. Discovery inspires, informs and entertains audiences worldwide through its iconic brands and products including: Discovery Channel, HBO Max, discovery+, CNN, DC, TNT Sports, Eurosport, HBO, HGTV, Food Network, OWN, Investigation Discovery, TLC, Magnolia Network, TNT, TBS, truTV, Travel Channel, Animal Planet, Science Channel, Warner Bros. Motion Picture Group, Warner Bros. Television Group, Warner Bros. Pictures Animation, Warner Bros. Games, New Line Cinema, Cartoon Network, Adult Swim, Turner Classic Movies, Discovery en Español, Hogar de HGTV and others. For more information, please visit www.wbd.com.
Bank of Nova Scotia raised its holdings in shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD – Free Report) by 17.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 4,998,709 shares of the company’s stock after buying an additional 738,783 shares during the period. Bank of Nova Scotia owned about 0.20% of Warner Bros. Discovery worth $137,265,000 at the end of the most recent quarter.
Several other institutional investors have also added to or reduced their stakes in the business. Swiss RE Ltd. bought a new position in Warner Bros. Discovery in the 4th quarter worth approximately $26,000. Fideuram Asset Management Ireland dac purchased a new stake in Warner Bros. Discovery during the 4th quarter valued at approximately $29,000. MV Capital Management Inc. bought a new stake in shares of Warner Bros. Discovery during the fourth quarter valued at approximately $30,000. JPL Wealth Management LLC bought a new stake in shares of Warner Bros. Discovery during the third quarter valued at approximately $33,000. Finally, Rakuten Securities Inc. lifted its holdings in shares of Warner Bros. Discovery by 81.5% in the fourth quarter. Rakuten Securities Inc. now owns 1,160 shares of the company’s stock worth $33,000 after buying an additional 521 shares in the last quarter. 59.95% of the stock is currently owned by institutional investors.
Warner Bros. Discovery Price Performance Shares of WBD stock opened at $25.95 on Friday. The company has a market capitalization of $65.06 billion, a P/E ratio of -37.07 and a beta of 1.54. The company’s 50-day simple moving average is $26.74 and its two-hundred day simple moving average is $27.40. Warner Bros. Discovery, Inc. has a one year low of $10.76 and a one year high of $30.00. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.73 and a quick ratio of 0.73.
Warner Bros. Discovery (NASDAQ:WBD – Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($1.17) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($1.07). The company had revenue of $8.89 billion for the quarter, compared to the consensus estimate of $8.89 billion. Warner Bros. Discovery had a negative net margin of 4.67% and a negative return on equity of 4.77%. The business’s revenue was down 1.0% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.18) EPS. As a group, equities analysts anticipate that Warner Bros. Discovery, Inc. will post -1.07 EPS for the current year.
Key Stories Impacting Warner Bros. Discovery Here are the key news stories impacting Warner Bros. Discovery this week:
Positive Sentiment: Warner Bros. Discovery received European Commission approval for the Paramount Skydance acquisition, removing a major international regulatory hurdle and improving the odds that the deal can eventually close. European Commission Approves Paramount Skydance Corporation Acquisition of Warner Bros. Discovery Positive Sentiment: Analysts and market commentary continue to frame the media sector as entering a consolidation phase, which supports the view that WBD remains a strategic takeover target. The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&A (WBD) Neutral Sentiment: The EU approval came with conditions, including changes to Paramount’s distribution arrangements, so the deal still faces execution risk even after the regulatory green light. EU regulators clear with conditions Paramount’s $110 billion bid for Warner Bros Negative Sentiment: A federal judge paused the Paramount-WBD transaction through mid-August while considering lawsuits from state attorneys general and the Writers Guild, extending the timeline and adding legal uncertainty. Paramount-Warner Bros deal paused through August 17, judge rules Negative Sentiment: Heavy put-option buying suggests some traders are positioning for downside or hedging against a failed or delayed deal. Traders Buy Large Volume of Put Options on Warner Bros. Discovery (NASDAQ:WBD) Analyst Ratings Changes A number of brokerages have recently weighed in on WBD. Weiss Ratings lowered Warner Bros. Discovery from a “hold (c-)” rating to a “sell (d-)” rating in a research report on Thursday, May 7th. Zacks Research upgraded Warner Bros. Discovery from a “strong sell” rating to a “hold” rating in a research report on Monday, June 1st. UBS Group increased their price target on Warner Bros. Discovery from $30.00 to $31.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Seaport Research Partners raised Warner Bros. Discovery from a “neutral” rating to a “buy” rating and set a $31.00 price objective on the stock in a research note on Monday, June 29th. Finally, Guggenheim reaffirmed a “neutral” rating on shares of Warner Bros. Discovery in a report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $27.04.
Check Out Our Latest Stock Analysis on Warner Bros. Discovery
About Warner Bros. Discovery (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.
See Also Five stocks we like better than Warner Bros. Discovery Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding WBD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Warner Bros. Discovery, Inc. (NASDAQ:WBD – Free Report).
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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. However, a federal judge just paused the deal after a lawsuit was filed on July 13 by a coalition of 12 state attorneys general.
Let’s break down exactly what is happening, what’s at stake, and what could come next.
What has happened so far? This all started back in October when Warner Bros. Discovery revealed it was exploring a potential sale after receiving unsolicited interest from several major players in the industry.
The bidding process quickly became competitive, and Paramount and Comcast emerged as serious contenders, with Paramount initially viewed as the frontrunner.
However, WBD’s board eventually determined that an offer from the streaming giant Netflix was the most attractive. Netflix offered $82.7 billion for just Warner’s film, television, and streaming assets.
Thus began the bidding war. Paramount believed its bid of approximately $108 billion for all of Warner’s assets was superior to Netflix’s offer that focused on just the studios and streaming. To sweeten its deal, Netflix amended its agreement in January to an all-cash offer at $27.75 per share of Warner Bros. Discovery, further reassuring investors and paving the way for the deal to proceed.
Paramount persisted in its attempts to acquire WBD. Still, the Warner board repeatedly rejected its offers, citing concerns about Paramount’s heavy debt load and the increased risk associated with its proposal, including concern over the suite of investors bankrolling Paramount’s bid, which includes Saudi, Qatari, and Abu Dhabi sovereign wealth funds. The board noted that Paramount’s offer would have left the combined company burdened with $87 billion in debt, a risk they were unwilling to take at the time.
In January, Paramount filed a lawsuit seeking more information about the Netflix deal. A month later, the company sought to sweeten its deal by announcing it would offer a $0.25 per share “ticking fee” to WBD shareholders for each quarter the deal fails to close by December 31, 2026. It also said it would pay the $2.8 billion breakup fee if Warner backs out of its deal with Netflix.
Then, in a final attempt to secure a deal, Paramount increased its offer to $31 per share in February. This prompted the WBD board to prolong discussions with Paramount regarding a potential agreement, considering it as a superior offer. Netflix declined to increase its bid and withdrew from the negotiations.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement on February 26. “However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
In addition to the billions Paramount already holds in debt, the company is also set to assume the approximately $33 billion in debt Warner Bros. Discovery holds under the agreement. The deal will be backed by a $54 billion debt commitment from Bank of America, Merrill Lynch, Citi, and Apollo Global Management, as well as $45.7 billion in equity from Larry Ellison.
Regulatory hurdles and other concerns In addition to the assumption of substantial debt posing a significant financial burden, Paramount faces several other hurdles in its deal with WBD that could impact the success of the transaction.
For one, Ellison has warned about significant job reductions that are expected in the near future. There have already been widespread concerns among critics about potential job losses and lower wages.
Ellison is also a controversial figure in the industry, and his ownership of CBS News has been seen as sympathetic and supportive of the administration of Donald Trump, of whom his father, Larry Ellison, is a major donor. Under Ellison’s ownership of Paramount, reporting critical of the administration has been shelved or received increased scrutiny from Ellison or his appointed head of CBS News, the conservative provocateur Bari Weiss.
This has led to some concern among employees at Warner-owned CNN. Trump has personally sought concessions from news divisions critical of him, including a $16 million settlement from CBS, before his FCC would approve the Ellison takeover of Paramount. Before Netflix bowed out of the deal, Trump pressured the company to fire the former Biden White House official Susan Rice from its board. He has publicly stated his intentions to bring CNN to heel under new owners.
Regulatory scrutiny is another hurdle. Such a large-scale merger has attracted attention from lawmakers.
For instance, California attorney general Rob Bonta said in a statement on February 26 that “these two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”
A day before Netflix backed out, it was revealed that a coalition of 11 state attorneys general urged the U.S. Department of Justice to review the merger under concerns it will stifle competition and increase subscription prices. This comes months after U.S. senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal voiced their concerns to the Justice Department’s Antitrust Division, warning that such a massive merger could have serious consequences for consumers and the industry at large. The senators argue that the merger could give the new media giant excessive market power, enabling it to raise prices for consumers and stifle competition.
Despite the DOJ approving the deal in June, a coalition of 12 state attorneys general filed a lawsuit on July 13 to block the merger. The suit argues it would lessen competition and harm movie theaters, cable distributors, and viewers. The coalition is led by Bonta, with Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington also joining.
In response, U.S. District Judge Araceli Martínez-Olguín issued a 14-day pause.
When is the deal expected to close? Paramount initially aimed to finalize its acquisition of WBD as early as July. However, the transaction has now been temporarily paused until August 3, with a hearing set to assess whether the freeze will extend further.
Stay tuned…
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Federální soudkyně Araceli Martínez-Olguín dočasně pozastavila plánované převzetí společnosti Warner Bros. Discovery firmou Paramount Skydance v transakci v celkové hodnotě 110 mld. USD. Podle soudkyně dohoda „pravděpodobně" porušuje antimonopolní právo.
Společnosti musí s dokončením vyčkat po dobu 14 dní, přičemž Paramount a Warner Bros. doufaly, že dohodu uzavřou již 22. července. Skupina dvanácti amerických států v čele s Kalifornií podala minulý týden antimonopolní žalobu. O tom, zda se pozastavení prodlouží až do konce soudního sporu, rozhodne soudkyně na slyšení naplánovaném na 3. srpna.
Zdržení může být pro Paramount Skydance nákladné. Od 30. září by musel platit akcionářům Warner Bros. Discovery denní poplatek 7 mil. USD. Prohra u soudu by navíc mohla celý obchod zmařit a přinutit firmu uhradit sedmimiliardový poplatek za zrušení transakce. Paramount přitom měl uzavření dohody na dosah, poněvadž už získal souhlas amerického ministerstva spravedlnosti a schválení evropských regulátorů se očekávalo právě 22. července.
Akcie Warner Bros. Discovery a Paramount Skydance Akcie Warner Bros. Discovery (WBD) včera oslabily o 3,76 % na 25,86 USD, akcie Paramount Skydance (PSKY) odepsaly 2,06 % na 8,57 USD.
