Warner Bros. Discovery delivered strong streaming results in its second quarter, reporting a 10% jump in streaming revenue as the media giant awaits a trial over its proposed merger with Paramount Skydance.
The company’s streaming segment generated more than $3 million in revenue during the quarter, according to CNBC, with adjusted earnings before interest, taxes, depreciation, and amortization exceeding $500 million. The growth came from HBO Max’s expansion into new markets and a robust content lineup featuring series including “Euphoria,” “House of the Dragon,” and “The Pitt.”
Warner Bros. Discovery said it expects momentum to continue in the second half of the year with the addition of content tied to “Harry Potter” and “Gilded Age.”
Advertising Growth Offset by NBA Loss
The streaming business saw advertising revenue climb 9%, primarily driven by an increase in global ad-lite subscribers. However, the company noted that losing NBA games from its streaming service under a new media rights package created a significant headwind. Excluding the impact of foreign currency exchanges, the absence of basketball advertising negatively affected year-over-year growth by 16%.
Merger Plans Under Scrutiny
The streaming gains come as Warner Bros. Discovery and Paramount navigate regulatory challenges to their proposed combination. Paramount CEO David Ellison announced in May that he intends to merge HBO Max and Paramount+ into a single streaming service if the acquisition moves forward. That merger has been challenged by state attorneys general and is scheduled to go to trial in March.
The proposed deal has drawn criticism from lawmakers who view it as anticompetitive. Both companies have defended the merger, arguing they need greater scale to compete effectively with industry leaders.
A combined service would bring together roughly 200 million subscribers, according to Ellison’s previous statements. Paramount+ had approximately 81 million global subscribers as of the end of its most recent quarter. Ellison has emphasized his commitment to preserving the HBO brand, stating that “HBO should stay HBO.”
Overall Financial Performance
Beyond streaming, Warner Bros. Discovery’s broader financial results showed challenges. The company reported total revenue of $8.72 billion for the second quarter, an 11% decline from the year-ago period and below Wall Street expectations of $9.29 billion, according to LSEG.
Net income attributable to the company fell sharply to $149 million, or 6 cents per share, compared with $1.58 billion, or 63 cents per share, in the same quarter a year earlier. The company attributed the substantial decrease to pre-acquisition adjustments to the value of intangible assets and restructuring costs.
Adjusted EBITDA for the quarter totaled $1.88 billion, compared with $1.95 billion in the year-ago period.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/06/warner-bros-discovery-streaming-revenue-paramount-combination.html
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