Warner Bros. Discovery is a Nasdaq-listed media company (WBD) that owns Warner Bros., HBO, HBO Max, DC, CNN and Discovery. It reported FY2025 revenue of $37.3B and is being acquired by Paramount Skydance for $31 per share in cash, with closing expected October 6, 2026.
How Warner Bros. Discovery Was Formed
WBD was created in April 2022 when AT&T spun off WarnerMedia and merged it with Discovery, Inc. Its studio side traces back to Warner Bros. Pictures, founded in 1923, and its Discovery side to the Discovery Channel, launched in 1985. David Zaslav, who had run Discovery since 2007, became CEO.
The first years focused on cutting costs and paying down merger debt. The company posted net losses from 2022 through 2024, then returned to a $727 million profit in 2025.
How Warner Bros. Discovery Makes Money
WBD reports three segments: Streaming, Studios, and Global Linear Networks. Revenue comes from subscriptions and carriage fees, advertising, and content sales such as theatrical films, TV licensing and games. It ended 2025 with 131.6 million streaming subscribers.
Recent Financial Results
FY2025 revenue was $37.3 billion, down 5% ex-FX, with adjusted EBITDA of $8.7 billion and free cash flow of $3.1 billion. In Q2 2026 revenue fell 12% ex-FX to $8.7 billion, hurt by the loss of NBA rights and a weaker theatrical slate, while net income was $149 million. Net debt stood at $29.7 billion.
The Paramount Skydance Merger
WBD put itself up for sale in October 2025. Netflix won the first round in December with a deal for the studios and streaming business, but Paramount Skydance kept bidding and signed an agreement on February 27, 2026 to buy the whole company for $31 per share. Stockholders approved it on April 23, 2026, and the Justice Department cleared it in June. A challenge from 12 states ended in a settlement approved in late September, and the companies set October 6, 2026 as the expected closing date.
