Warner Bros Discovery (WBD) Rises on Breakup Report Despite Weak Q1 Results

Faizan Farooque

Thu, May 8, 2025, 3:33 PM 1 min read

Warner Bros Discovery (WBD, Financials) is reportedly weighing a breakup of its business, separating cablegram from streaming and studios, according to CNBC. The banal rebounded Thursday contempt a anemic first-quarter report.

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The institution added 5.3 cardinal streaming subscribers during the quarter, beating the 3.1 cardinal expected and bringing its full to 122.3 million. Titles specified arsenic HBOs The White Lotus and The Pitt helped boost maturation successful its Max platform.

Studio gross dropped 18% to $2.31 billion, beneath the $2.73 cardinal estimate, arsenic Mickey 17 underperformed astatine the container office. In contrast, Q2 has started beardown with A Minecraft Movie earning $900 cardinal globally.

Revenue from the cablegram networks division, including CNN and Discovery Channel, declined 7% arsenic cord-cutting continued. The institution began reporting nether a caller operation successful December, separating its declining cablegram concern from higher-growth units.

WBD holds $38 cardinal successful gross debt, which whitethorn bounds options for selling the linear TV business. eMarketers Ross Benes said a leaner WBD without cablegram could boost maturation but added that uncovering a purchaser for declining TV assets volition beryllium difficult.

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This nonfiction archetypal appeared connected GuruFocus.