Warner Bros Discovery reported a 6% decline in quarterly revenue, as weakness in traditional TV and film offset subscriber gains at HBO Max.
The company remains at the center of a high-stakes bidding war, though its earnings statement did not address ongoing talks with Paramount Skydance.
Paramount recently signaled a potential improved cash offer, reopening negotiations and challenging Warner Bros’ existing merger agreement with Netflix.
Adjusted income in the film and TV studio division dropped 23% to $728 million, reflecting softer performance in legacy businesses.
The film studio, despite nine box office leaders in 2025, had no major holiday releases, while TV studio revenue slid 18%.
Discovery Linear Networks continued to struggle amid industry-wide cord-cutting, underscoring pressure on traditional pay TV models.
Television network revenue fell 12% to $4.2 billion, while adjusted income plunged 27% to $1.4 billion year over year.
Investors are closely watching whether a superior proposal emerges, with Netflix granted four business days to revise its bid if necessary.
