HBO Max's subscriber count reached 131.6 million, with Q4 streaming revenue showing growth. However, Warner Bros. Discovery's media networks faced challenges, notably the loss of the NBA, which impacted advertising revenue. The real drama lies in the M&A landscape, where Paramount is now in the running to acquire Netflix, thanks to a new development in the talks between WBD and Paramount. This could potentially change the game for both companies. The Q4 revenue for the media giant dipped 6% to $9.46 billion, with adjusted EBITDA falling 19% to $2.2 billion. Net losses narrowed to $252 million, including $1.3 billion in restructuring and transaction-related costs. Warner Bros. film studio, known for its awards and box office success, saw a slowdown in Q4 due to a lack of new releases. Despite this, the studio's full-year profit rose 54% to $2.5 billion, with a target of $3 billion. Upcoming releases include 'Supergirl' and 'Dune: Messiah'. Television revenue fell 18%, while games revenue dropped 34%. Total Studios revenue fell 13% to $3.2 billion for the quarter and rose 9% to $12.6 billion for the year. Studios profit fell 23% to $728 million for the quarter. In streaming, revenues rose 4% to $2.8 billion, with HBO Max growing subscribers by 13%. Advertising revenue jumped 17%, but was partially offset by the absence of the NBA. HBO Max ended the year with 131.6 million subscribers, an increase of 3.5 million from Q3. WBD cited strong growth for HBO Max in 2026, with the return of popular shows and steady audience growth. The media giant ended the year with $4.6 billion in cash, $33.5 billion in gross debt, and 3.3x net leverage. Global Networks revenue fell 12% to $4.2 billion, with profit dropping 27% to $1.4 billion due to a decline in domestic linear pay TV subscribers. Linear profit fell 21% for the full year. WBD highlighted its global footprint and CNN as a valuable asset, with plans for a TNT Sports app to centralize its U.S. portfolio. The company's debt and leverage will influence its planned spinoff of Discovery Global, unless Paramount successfully acquires the whole company.
