Warner Bros. Discovery, Inc. (WBD)

WBD became a wholly owned subsidiary of Skydance Corporation on October 6, 2026, when the merger closed 1.

The filing puts the aggregate cash paid for the company at approximately $78 billion, and its Series A common stock was withdrawn from Nasdaq that day 1. On October 16, 2026 it filed a certification ending its duty to file reports with the SEC, and it reported one holder of record for its common stock 13.

Revenue for the second quarter of 2026 was $8,717 million, down 11 percent from $9,812 million a year earlier 3. Net income available to the company fell to $149 million from $1,580 million 3.

The company said advertising fell because the NBA was no longer on its networks 3. It said theatrical revenue fell 46 percent against the strong 2025 releases of A Minecraft Movie, Sinners and Final Destination Bloodlines 3. Streaming revenue rose 10 percent to $3,079 million 3.

David Zaslav's employment ended on October 6, 2026, and three more officers separate on October 16, 2026 1. Variety reported on October 6, 2026 that JB Perrette, previously Warner's streaming chief, is now co-chair and chief business officer of Skydance's television and streaming units 6.

What stays open is how Skydance combines the two companies' streaming and cable businesses, which its release says it aims to do over time 4.

The company in its current form dates from April 8, 2022, when Discovery completed its acquisition of the WarnerMedia business from AT&T 2. Chief financial officer Gunnar Wiedenfels has served since that closing, after holding the same post at Discovery from April 2017 2.

Revenue then slid year by year, from $41,321 million in 2023 to $39,321 million in 2024 and $37,296 million in 2025 2. In 2025 distribution revenue fell 2 percent on a 9 percent drop in domestic linear subscribers, and advertising revenue fell 11 percent on a 25 percent drop in domestic linear audiences, excluding currency effects 2.

The company lost $3,126 million in 2023 and $11,311 million in 2024 2. The 2024 loss included a $9,147 million non-cash write-down of goodwill, the premium paid in past acquisitions, at its cable networks business 2.

In 2025 it earned $727 million 2. A $2,959 million gain from buying back $17,665 million of its own bonds for less than their face value helped 2.

In 2025 HBO Max reached over 100 markets, the company added 14.7 million streaming subscribers, and it ended the year with 131.6 million 2.

Cable networks went the other way: Global Linear Networks adjusted EBITDA fell to $6,412 million in 2025 from $8,149 million 2.

Streaming adjusted EBITDA, profit before interest, taxes, depreciation and some one-off items, rose to $1,370 million in 2025 from $677 million 2. Studios revenue rose to $12,619 million from $11,607 million, led by One Battle After Another, Sinners, Superman and A Minecraft Movie 2.

In June 2025 the company announced a plan to split in two, Warner Bros and Discovery Global, and in October 2025 its board began weighing wider options 2. In January 2026 it agreed to an amended deal under which Netflix would have acquired its Streaming and Studios segments 2.

Paramount then launched a hostile counterbid for all of Warner, and the Associated Press called the contest a roughly yearlong fight 5. On February 27, 2026 the board ended the Netflix agreement and Paramount paid Netflix a $2.8 billion termination fee on the company's behalf 2.

In the first half of 2026 the company recorded a $2.8 billion expense for the Netflix termination fee, and its net loss available to the company was $2,767 million 3.

Warner's stockholders approved the Paramount agreement on April 23, 2026 3. In July 2026 twelve state attorneys general and two Writers Guild unions sued to block it, and on September 30, 2026 a federal court entered a consent decree with the states 312.

Streaming

Streaming means HBO Max, discovery+ and the HBO channel, sold to households directly or through distributors 2. Its revenue was $10,876 million in 2025 2.

Distribution made up 87 percent of that revenue and advertising 9 percent 2. Adjusted EBITDA was $512 million in the second quarter of 2026 against $293 million a year earlier 3.

Studios and games

Studios makes films and television for theaters, networks and streamers, and licenses its characters for consumer products, theme experiences and games 2. Its film labels are Warner Bros Pictures, New Line Cinema and Warner Bros Pictures Animation 2.

Warner Bros Games announced in June 2025 a focus on four franchises: Harry Potter, Game of Thrones, DC and Mortal Kombat 2. Studios revenue was $2,328 million in the second quarter of 2026, down 39 percent from $3,801 million 3.

Studios adjusted EBITDA fell to $96 million from $863 million, which the company tied to lower film rental revenue against the strong 2025 releases 3.

Global Linear Networks

Global Linear Networks is the channel business: TNT, TBS, Discovery Channel, HGTV, Food Network and TLC in the United States, CNN, and Eurosport and TNT Sports in Europe 2. TNT Sports has partnerships with the College Football Playoff, Major League Baseball, the National Hockey League and NASCAR 2.

Segment revenue was $17,656 million in 2025, down from $20,175 million 2. In the second quarter of 2026 it fell 17 percent to $3,991 million 3.

The company tied the fall to a 10 percent decline in domestic linear subscribers and to the absence of the NBA 3. It states that declines in linear subscribers are expected to continue 3.

People and places

The company had approximately 35,500 employees on December 31, 2025, 48 percent of them in the United States 2. Its headquarters is a leased building at 230 Park Avenue South in New York, on a lease that expires in 2037 2.

It owns about 2,600,000 square feet of studios at 4000 Warner Boulevard in Burbank, California, and 1,300,000 square feet at Leavesden in the United Kingdom 2.

At the close, chief executive David Zaslav and the other directors left the company's board 1. Variety reported on October 6, 2026 that Skydance is led by David Ellison as chairman and chief executive and Ynon Kreiz as co-chief executive 6.

Casey Bloys, who ran HBO and HBO Max, is co-chair and chief content officer of Skydance's streaming unit, and Variety reported that Warner film chiefs Pamela Abdy and Michael De Luca are not joining 6.

Rivals and current problems

The annual report says the company competes for viewers, carriage fees and advertising with other networks, streaming services, studios and large social media and free video platforms 2.

Skydance carries about $80 billion of debt after the deal, Deadline reported, and Fitch cut its rating on the combined company citing "significant execution and integration risks" 10.

The consent decree binds the combined company for five years: at least 30 films a year at first, a 45-day theatrical window for each, and separate cable talks for Paramount and Warner channels 12.

The umbrella, in words

The annual report names Discovery Channel, HBO Max, CNN, DC Studios, TNT Sports, HBO, Food Network, TLC, TBS, Adult Swim and Turner Classic Movies among its brands 2. It also names Warner Bros Motion Picture Group, Warner Bros Television Group and Warner Bros Games 2.

Exhibit 21 to the annual report lists consolidated subsidiaries, among them Warner Bros Entertainment Inc., Home Box Office, Inc., Discovery Communications, LLC and Cable News Network, Inc. 7. It also names New Line Cinema LLC, Castle Rock Entertainment, Bleacher Report, Inc., Eurosport SAS and TVN S.A. of Poland 7.

The 10-Q shows an equity method interest of 44 percent in The Chernin Group (TCG) 2.0-A, LP and 32 percent in nC+ as of June 30, 2026 3.

A Schedule 13D amendment reports 7,417,345 ordinary shares of Anghami Inc. beneficially owned by Warner and affiliates, 71.3 percent of the class counting warrants, for an event dated September 11, 2026 8. A Schedule 13G amendment reports 11,720 shares of VS MEDIA Holdings Limited, 0.4 percent of the class, for an event dated September 25, 2026 9.

In January 2025 the company contributed a 70 percent interest in its music catalog to a joint venture with Cutting Edge Group for net proceeds of $601 million 3. It kept control and consolidates the venture, and Cutting Edge received a further 9 percent economic interest in the first quarter of 2026 3.

Since October 6, 2026 Skydance Corporation owns the company outright 1. The Ellison family and RedBird Capital Partners are the sole owners of Skydance's Class A stock, which carries 100 percent of its voting shares, its release says 4.

The $47 billion of new Class B equity was led by the Ellison family, RedBird, the Public Investment Fund, L'IMAD, the Qatar Investment Authority and LionTree 4. Those investors agreed to a 180-day lock-up on transfers 11.

In its closing release dated October 6, 2026, Skydance said it targets at least $6 billion in run-rate synergies within three years 4. It said the savings would come mainly from technology, integration and procurement, marketing and real estate rationalization 4.

The release also says Skydance aims to reduce net leverage to its 3.0x target by the end of 2029 and expects to generate more than $10 billion in free cash flow by 2030 4.

It says its direct-to-consumer streaming products will unify into a single service over time 4. Co-chief executive Ynon Kreiz named "our integrated DTC platform" and optimizing "our highly profitable linear TV portfolio" among the team's goals, Variety reported 6.

Under the consent decree the combined company must release at least 30 films a year at first and 32 a year later, each in theaters for at least 45 days 12.

Within 180 days of the closing it must set up a five-member News Editorial Independence Board for CBS News and CNN 12.

It must also spend at least $300 million more a year on United States production than the two companies did together in 2025 12.

The release also promises a minimum of 30 theatrical films a year and 180+ television shows and series 4.

Deadline reported that the new debt raises annual interest expense by up to $500 million over what was first anticipated, with rates on some notes topping 9 percent 10. It also reported that David Ellison has committed family resources if needed to cut leverage significantly by 2028 10.

Gunnar Wiedenfels, Bruce Campbell and Priya Aiyar separate from the company on October 16, 2026, and their transaction bonuses are to be paid no later than 60 days after the closing 1.

The annual report listed series slated for 2026, including the Game of Thrones prequel A Knight of the Seven Kingdoms, and returns of House of the Dragon, Euphoria, The Pitt and Hacks 2.