Throughout 2025, Warner Bros. Discovery — which brings together film studios, television, streaming (HBO, HBO Max, etc.), and traditional channels— decided to review its strategy. Back in June, it had already proposed splitting into two separate companies: one for its film/streaming/studios business (studios + streaming) and another for its linear television channels. But in October 2025, WBD’s leadership appeared to pivot from its initial idea, confirming that it was considering a full or partial sale after receiving “unsolicited interest” from several companies.
Before moving forward, let’s take a few steps back to better understand this company’s history…
The origins of WarnerMedia date back several decades, beginning with the 1990 merger between Warner Communications and Time Inc., which formed Time Warner.
Over the years, Time Warner expanded through acquisitions — for instace, by acquiring Turner Broadcasting System in 1996 (bringing in news, entertainment, animation networks, and more).
In 2001, Time Warner merged with AOL during the well-known dot-com “bubble”, before the two companies separated again in 2009. Out of these complex corporate moves emerged a renewed entity focused on audiovisual content.
Finally, in 2018, telecom giant AT&T acquired Time Warner — renaming it WarnerMedia — with the intention of integrating film/TV content with telecommunications.
Discovery, Inc., on the other hand — founded as an independent company — had grown into a major player in non-fiction television content, thematic entertainment, documentaries, cable channels, real-life TV, and unscripted programming. In 2018, Discovery acquired Scripps Networks Interactive (owner of channels such as HGTV and Food Network), expanding its catalog and strengthening its position in lifestyle and thematic entertainment.
Therefore, before the two companies began their merger discussions, WarnerMedia was a powerhouse of premium content, film, series, pay TV channels, and news — with decades of Hollywood and media heritage — while Discovery, Inc. was a strong global player in “generalist / factual / thematic / cable / international” entertainment.
Several factors converged for WarnerMedia and Discovery, Inc. to consider joining forces in 2021–2022:
In 2021, AT&T (which owned WarnerMedia at the time) decided it wanted to exit the media business — television, film, entertainment — to refocus on its core telecommunications operations, including 5G and internet services. This decision set in motion the search for a “spin-off” solution for WarnerMedia.
At the same time, the audiovisual market was already shifting dramatically: competition between “traditional” TV/cable services and streaming platforms was intensifying. Both companies saw an opportunity: by combining WarnerMedia’s premium content catalog (film, series, HBO, studios, news) with Discovery’s international distribution strength, thematic networks, and expertise, they could create a more globally competitive conglomerate.
The deal was officially announced in May 2021. The transaction was structured using a financial mechanism known as “Reverse Morris Trust”, which allowed WarnerMedia to be spun off from AT&T and merged with Discovery, with a share split of approximately 71% for former AT&T (WarnerMedia) shareholders and 29% for Discovery shareholders.
The goal of the new group was not merely to survive but to position itself as one of the major global contenders in entertainment — with a vast catalog spanning film, series, news, sports, lifestyle and thematic content, and both traditional and streaming TV networks.
In addition, executives from both companies understood they could benefit from synergies: by consolidating overlapping operations (distribution, production, administration, marketing), they aimed to achieve cost savings and greater operational efficiency.
And critically, the market demanded reinvention. With the rise of streaming and the decline of traditional/cable TV in certain regions, the combination gave the new company the flexibility needed to adapt to evolving patterns of audiovisual consumption.
The agreement was formally completed on April 8, 2022, when WarnerMedia was spun off from AT&T and combined with Discovery, Inc. to create the new company Warner Bros - Discovery.
As of April 11, 2022, the new company’s shares began trading on the Nasdaq under the ticker symbol WBD.
Internally, the merger brought together a wide range of assets: film and television studios, premium services (film, series, HBO/HBO Max, etc.), traditional cable networks, thematic entertainment channels, news networks, sports properties, and international operations.
Leadership of the new group was shared between executives from both companies: although many key positions were filled by Discovery executives, several WarnerMedia leaders also retained important roles, particularly in content, studios, and premium networks.
After the 2022 merger, WBD consolidated its premium film/television assets (inherited from WarnerMedia) with Discovery, Inc.’s entertainment, factual, and cable channel portfolio. A key part of this strategy was the integration of their streaming platforms.
In April 2023, WBD launched its unified streaming service under the brand Max (a merger of HBO Max and Discovery+). More recently, in 2025, the company decided to rename Max back to HBO Max — a nod to HBO’s premium brand, aimed at reinforcing an identity built on quality over quantity.
In 2023, the streaming division saw strong growth: WBD reported a 51% increase in revenue from this segment, which the company attributed to price hikes and greater adoption of Max’s ad-supported tier.
WBD also chose to keep the older Discovery+ platform active in certain markets instead of shutting it down completely, as it remained profitable and retained a satisfied user base.
Overall, WBD has sought to adapt to the global market and shifting consumption habits — investing in streaming, combining rich catalogs, strengthening its premium brand identity, and maintaining segmented options where it makes strategic sense.
Company Revenue and Profitability
In summary, the company’s post-merger financial results were:
In the third quarter of 2025, WBD’s total revenue reached US$9.0 billion, a 6% year-over-year decline (excluding currency effects).
Despite this overall drop, the streaming and studio divisions (film/series) performed well — “Adjusted EBITDA” (a key operating metric) increased 2% year-over-year ex-FX.
That same quarter (Q3 2025), WBD reported a net loss of US$148 million, which included amortization related to acquisitions, revaluations, and restructuring costs.
Evolution of Total DTC Subscribers
Regarding streaming subscribers: since the 2022 merger between WarnerMedia and Discovery, the company no longer reports a standalone number for HBO Max — instead, its reports aggregate HBO/Max together with other services (such as Discovery+). This makes it impossible to isolate HBO Max’s specific subscriber count.
The Group’s total DTC streaming customers evolved as follows:
According to its latest Q3 2025 report, WBD has 128.0 million global subscribers.
By contrast, the traditional TV/linear channels business continues to struggle: in Q3 2025, revenue from that segment fell sharply (declines across distribution, advertising, and content), underscoring the ongoing decline of the linear model.
In summary: WBD has managed to rely on streaming and studios to support part of the business, partially offsetting the decline in cable/traditional TV — but the group is still dealing with net losses, amortization charges, and the need to readjust its business model.
Stock Performance and Market Valuation
Since the merger in April 2022, Warner Bros. Discovery (WBD) stock fell from levels near US$25–30 shortly after listing. It slid to lows around US$9–10 by late 2022 — a steep drop following the initial enthusiasm that had pushed the stock to US$77.27 on March 19, 2021.
In 2023–2024, the stock remained fairly subdued, ending 2024 around US$10–11.
Throughout 2025, the stock regained momentum: driven by expectations of restructuring, potential asset sales, and optimism around its streaming business, it surged. By late November 2025, WBD shares were trading close to US$24.
Over the past 12 months, the stock has risen sharply: its 52-week range spans from US$7.52 to approximately US$24.19.
This recent rebound is largely due to expectations generated by potential buyers' interest and the possible “reshaping” of the company. As recent reports indicate, after announcing that they were open to acquisition offers, the stock appreciated significantly.
Strengths / Bright Spots
WBD has successfully combined a powerful content portfolio — film, series, factual, documentary, sports, and diverse entertainment — giving it versatility amid shifting consumption habits.
The global growth of its subscriber base and the international expansion of its streaming service allow for future geographic and revenue diversification.
The studio segment (films and series) remains a major pillar: strong box office performance and licensed content continue to support profitability in this area.
Weaknesses / Shadow Areas
The traditional linear TV business remains in steady decline — falling revenue and audience levels threaten its medium-term viability. WBD reported a 6% revenue drop in its traditional TV division in the third quarter, underscoring the pressure on that model.
Despite progress in streaming, WBD continues to report net losses in recent quarters (driven in part, according to the company, by amortization and structural costs).
Global competition in streaming is intense, and converting subscribers into consistent revenue (especially in international markets) will remain an ongoing challenge.
And this brings us back to where this text began.
As mentioned earlier, in October 2025 WBD’s leadership confirmed that it might consider a full sale of the company. At this point, three major players in the audiovisual/streaming industry entered what is essentially an informal “auction,” each attempting to acquire all or part of the company:
Let’s analyze the motivations, risks, and strategic value that may have driven these companies to show interest — and what such an acquisition would mean for each of them.
A) If Paramount Skydance Wins (Full Acquisition):
If Paramount Skydance were to acquire WBD, it would gain significant scale in both content and streaming, while also consolidating its linear assets. The new combined company would control both production and distribution, giving it a highly dominant market share in theatrical releases and streaming.It could also explore integrating the streaming platforms (WBD + Paramount+), allowing it to consolidate users, optimize operating costs, and compete at global scale with the giants that currently dominate the landscape (Netflix, Prime Video, Disney+).
It is also worth noting that Paramount Skydance’s technological capabilities, applied to WBD’s business, could strengthen WBD’s operational trajectory.
However, Paramount Skydance is already under strain following its recent merger — with layoffs and reported losses — which complicates the absorption of WBD’s large and heavy corporate structure.
In short: if the acquisition succeeds, Paramount Skydance could become the largest player in global entertainment — but the integration and financial risks would be substantial.
B) What a Netflix Acquisition Would Mean
If Netflix were to acquire WBD assets (indications suggest this would focus on its studios and streaming division, rather than a full company takeover), the impact on Netflix would be enormous. It would solidify Netflix’s position as the dominant global streaming platform, with a much broader and more diverse catalog — adding franchises like Harry Potter, DC Comics superhero universes, HBO prestige series, and a massive volume of classic and new content.
Regarding subscriber growth, combining platforms would not mean a simple 1+1=2. There are no official figures, but according to industry studies and analysis, the number of net new subscribers Netflix might gain is estimated to be under 20 million.
In any case, Netflix’s offer is widely perceived as a defensive move, more than a genuine interest in owning the assets — a way to avoid putting at risk the content pipeline that currently feeds Netflix’s own library, especially if Paramount were to acquire WBD.
C) And Finally, What Would a WBD Acquisition Mean for Comcast?
As with Netflix, Comcast’s bid is likely driven more by a defensive position than by pure strategic ambition. And similarly, the offer appears to be focused primarily on WBD’s studio and streaming operations, rather than on acquiring the entire company.
If Comcast were to acquire Warner Bros. Discovery, it would dramatically strengthen its entertainment footprint: NBCUniversal would gain one of the most valuable film and TV libraries in the world, boosting its streaming catalog, reinforcing its theatrical presence, and enhancing its distribution businesses and theme parks.
Moreover, combining the two groups could unlock cost synergies and complement their existing assets, potentially revitalizing Comcast’s streaming business (which is currently not particularly strong) and improving its market valuation.
However, taking on Warner Bros. would also pose significant challenges: the transaction would face intense regulatory scrutiny due to the size of the combined entity and the concentration of power in the audiovisual industry — which could complicate or even block the merger.
Comcast would also need to manage a complex integration: blending corporate structures, debt, content libraries, and distinct company cultures is no small task, and could create internal tensions and financial risks.
In sum: for Comcast, the acquisition represents a high-risk, high-impact gamble. If executed successfully, it could transform Comcast into one of the most dominant global entertainment giants; if not, the deal could become costly and politically contentious.
WBD received the initial bids from Netflix, Comcast and Paramount Skydance on November 20. However, these first proposals were not sufficient for WBD’s board, which prompted the company to open a second round of bidding, with a deadline set for December 1st, 2025, requesting improved offers.
And that’s exactly what happened. On December 1st, all three companies submitted new bids:
Netflix presented a mostly cash offer for WBD’s entertainment and streaming assets. According to Bloomberg, Netflix is raising tens of billions of dollars to support its final bid.
Paramount Skydance submitted an enhanced proposal — with the intention of acquiring the entire company (or at least the majority of it).
Comcast also made a second offer, focused on the studio and streaming businesses, excluding the linear cable networks.
It’s worth noting that the offers submitted are binding, meaning that WBD’s board could move quickly to approve a deal if the terms meet their expectations.
This move signals a new wave of consolidation in Hollywood, involving major studios, streaming platforms and linear networks as potential buyers — a shift that could redistribute power across the global market.
The decisions taken (full sale, break-up, or partial sale) will affect how films, series and all types of content are produced, distributed and consumed, and could reshape competition among platforms.
For viewers, these changes may result in catalogue reshuffles, content availability shifts, and even new ways of accessing iconic franchises.
The outcome of WBD’s sale is critical for the audiovisual sector because it could reassign content rights and reshape the catalogues available to platforms and broadcasters. Depending on whether Paramount, Netflix or Comcast acquires WBD, strategic alliances and distribution agreements would be redefined on a global scale. This directly impacts competition in streaming and TV, influencing the ability to attract both subscribers and advertisers. It would also affect future content production, as each buyer would prioritize different genres, formats and target audiences. Meanwhile, the uncertainty surrounding the process is already creating volatility in investment decisions and budgeting across the industry. Ultimately, the decision will shape the future dynamics of media concentration, setting the tone for upcoming mergers and acquisitions.
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