- WBD’s linear networks suffer 22% YoY drop in revenue
- CEO David Zaslav says sports did not provide “value” for HBO Max
- Comcast hire Goldman Sachs and Morgan Stanley to evaluate offer
Warner Bros Discovery (WBD) witnessed a six per cent annual decline in revenue to US$9 billion during the third quarter of 2025, with Comcast emerging as a potential suitor for the media giant.
Streaming revenues were flat year-on-year (YoY) at US$2.63 billion with WBD adding 2.3 million subscribers during the three month period, bringing its total to 128 million. Streaming advertising rose by 15 per cent, while underlying profitability increased by 19 per cent to US$345 million.
However income from WBD’s linear networks division fell by 22 per cent to US$3.9 billion with profitability down 20 per cent to US$1.7 billion. A reduction in US pay-TV households caused an eight per cent drop in carriage fees, with advertising income down by 20 per cent due to lower viewership and the absence of the 2024 Paris Olympic Games, which WBD broadcast across Europe on Eurosport.
WBD declared a net loss of US$148 million and warned the loss of National Basketball Association (NBA) would impact its next set of results. However it hoped the Major League Baseball (MLB) playoffs, and investment in new sports rights would at least offset the negative impact on advertising.
WBD chief executive David Zaslav told investors sport was not a significant driver for its direct-to-consumer (DTC) streaming service HBO Max.
“We have found that all of our movies and scripted series, together with local content and local sport, is a very compelling offering outside the US, and that it’s a driver of real growth, and it’s quite differentiated,” Zaslav said.
“Here in the US… we were so robust in our storytelling, that we didn’t find that the sports were providing enough value for us in terms of incremental subs, which was why we didn’t get that many. There was some engagement. But the view is for us that HBO Max is much stronger as being the motion picture and storytelling product, not dependent on rental sports.”
Zaslav also confirmed that WBD has “an active process underway” in terms of evaluating a potential sale and separating its streaming and content businesses into two separate legal entities.
“We’re on track to create two strong, well capitalised businesses that can each create significant long term shareholder value,” he said. “The team is hard at work, both on the separation transaction, and on following the board’s direction to evaluate strategic alternatives. You’ve all seen media reports as to potential interested parties, and I won’t comment on anything specific.”
Netflix is said to be interested in acquiring WBD’s streaming and studios business, which does include global services like Discovery+, Eurosport and TNT Sports in the UK. Comcast is also keen and has reportedly retained financial advisers to explore a bid. Comcast has also been granted access to WBD’s financial information to inform its decision. Paramount is said to be interested in the whole company.
