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Warner Bros. Discovery Streaming Profits Rise 29% as Subscribers Top 140 Million

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  • Warner Bros. Discovery reported revenue of $8.89 on loss of $1.17 per share, in line with Wall Street revenue estimates but wider than an expected loss of 9 cents per share, per Yahoo Finance.
  • The $110 billion Paramount merger secured shareholder approval and remains on track to close by the third quarter.
  • Shares of the media giant fell 0.6% in after-hours trading following the results.

Warner Bros. Discovery posted a widened net loss of $2.92 billion in its first quarter as revenue fell 1% to $8.89 billion.

The net loss included $1.3 billion in “pre-tax acquisition- related amortization of intangibles, content fair value step-up, and restructuring expenses.” It also reflected the $2.8 billion termination fee paid to Netflix, which is refundable to Paramount Skydance in the event of a superior proposal or the violation of interim operating covenants.

Streaming was a bright spot, with revenue growing 9% to $2.9 billion, while profit jumped 29% to $438 million. The results were driven by an increase in ad-lite subscribers and HBO Max’s ongoing international expansion. Weighing on the segment’s results was a 27% decline in content revenue due to the timing of third-party licensing deals. It was also impacted by the absence of the NBA and a domestic distribution deal renewal in the prior year period.

WBD has joined Netflix and Disney in no longer breaking out subscribers on a quarterly basis, but noted that it exceeded 140 million subscribers during the quarter. It remains on track to exceed 150 million subscribers by year end.

Studios also grew revenue 35% to $3.13 billion and profit 156% to $775 million, driven by higher TV and theatrical revenues from increased intercompany and third party content licensing and HBO Max’s international expansion. Weighing the segment’s results down was the games unit, which saw its total revenue decline 30% as a result of lower library revenue.

Global linear networks continued to be a drag, with revenue falling 8% to $4.38 billion, while profits tumbled 9% to $1.63 billion. The results were driven by a 10% decrease in domestic linear pay TV subscribers, offset by a 2% increase in affiliate rates, the absence of the NBA and the timing of third party licensing deals.

Paramount merger on track for September closing

While the $110 billion Paramount merger has secured shareholder approval, it still remains subject to regulatory approval.

Regulators in the U.K. are gearing up to begin their review of the deal, with its deadline for public comments closing just last week. Paramount has also asked the FCC to approve its foreign investment in the deal, with those investors accounting for 49.5% of the equity of the combined company, and says there’s “no statutory impediments” remaining after the Department of Justice’s Hart-Scott-Rodino review period expired, though the regulator can still get involved at anytime in the process.

In addition to federal and international regulators, a group of U.S. state attorneys general led by California’s Rob Bonta are also reviewing the deal and weighing whether to take legal action against the merger. Bonta previously told TheWrap that “red flags are everywhere when you have a merger of this type” and that the states are prepared to “act timely,” but declined to provide a specific timeline for when a decision could be made.

If the deal is not closed by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.

More to come…

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Megyn Kelly Drags Madonna’s ‘Needy’ VMAs Performance

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Megyn Kelly ripped into Madonna’s appearance at the 2026 Video Music Awards, calling the music icon “needy.”

The “Confessions II” singer came out on top Sunday night at the awards show with seven trophies, including Artist of the Year and Best Collaboration with Sabrina Carpenter for their song “Bring Your Love.”

Madonna’s opening performance during the show featured dancers that had a laser seemingly coming out of their crotch area. Kelly railed into the singer, saying that it was unnecessarily vulgar.

“It’s really more of a butt exercise they’re simulating if I’m being honest because I don’t think most people have sex like that,” she said, commenting on the video in real time on Monday’s episode of “The Megyn Kelly Show.” “I don’t know if this is simulated blow jobs or what.”

Kelly also said that the singer started “bombing” while accepting an award later in the night. Madonna pretended to pull the laser out of her butt and drop it.

“Again, the picture of class. Um, sad, but that’s what she thinks is entertaining,” she said.

During another part of the show, Madonna asked the production team to raise the mic, so she wasn’t having to bow down to it, joking that she has “been bowing down to people for too long.”

“What the what? Who? You’re Madonna,” Kelly asserted. “Who have you bowed down to? Give me a break. Stop trying to act like you’re a victim.”

“Could you please try to find a more empowering narrative for age 68, please? I’m begging you,” she added. “She stinks of desperation.”

Later the former Fox News host made fun of Madonna for not even trying to lip sync during her performance, saying that she frauded the audience. She also pointed out what seemed to be padding in her bloomers.

Kelly said that Madonna used to be in good shape, but now at 68, she lost some muscle definition that she once had. The host said that the butt pads looked unnatural.

“It doesn’t look good. She just wants us talking about her, which I’m complying with,” she said. “But again, how is this hot, attractive, sexy? It just telegraphs needy to me.”

Watch the full clip from “The Megyn Kelly Show” above.

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‘ESPN Jeopardy!’ Returns For Season 2 On Hulu & Disney+

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Civilian sports fans can now apply to play the latest version of Jeopardy! after it was revealed that ESPN Jeopardy! is returning for a second season.

Disney+ and Hulu premiered the first season of the show in July with stars such as Jon Hamm, Hannah Storm, Manti Te’o and Adam Pally.

It will now return with everyday sports fans facing off against each other in order to win a $300,000 prize. In the first season, celebrities and ESPN talent competed in the tournament-style event for a $500,000 prize for the charity of their choice.

Joe Buck, who hosts the show, announced the renewal on Monday Night Football as the Philadelphia Eagles prepare to take on the Chicago Bears at Soldier Field.

The series, which is also available to watch on the ESPN app, is the latest spinoff of the classic gameshow. It comes after Sports Jeopardy!, which ran for three seasons and over 100 episodes on Crackle, Rock & Roll Jeopardy!, which ran for four seasons on VH1, and, more recently, Celebrity Jeopardy! and Pop Culture Jeopardy!, which is hosted by Saturday Night Live’s Colin Jost and moved from Amazon to Netflix for its second season, which debuted in May. There was also a recent YouTube digital edition.

The series is produced by Sony Pictures Television and Michael Davies, who exec produces the main Jeopardy!, serves as executive producer. It is shot on the Alex Trebek Stage, the official name of Stage 10 at Sony Pictures Studios in Culver City.

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Sylvester Stallone on ‘I Play Rocky’ Biopic: ‘I’m Not Dead Yet’

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Sylvester Stallone is weighing in on seeing his life’s story retold on the big screen in the upcoming biopic I Play Rocky.

The film, which premiered to much fanfare at the Toronto International Film Festival earlier this month, follows the making of 1976’s Rocky, with Anthony Ippolito playing a young version of Stallone as he develops and pushes the film through a tumultuous production.

During a chat at 92NY on Monday promoting his new memoir The Steps, Stallone reacted to the project, admitting he was initially “kind of mixed because I’m going, ‘I’m not dead yet. Aren’t we jumping the gun a little bit?’ And then I saw this video of this kid [Ippolito]. I actually thought it was me the first moment; there were a couple of angles. I go to my daughter and say, ‘That’s unbelievable.’”

The star emphasized he has “nothing to do” with the movie, which was directed by Peter Farrelly. “I said, ‘I’ll just sit back and watch.’ I talked to the kid. I said, ‘If you want any questions, here I am,’ and that was it. But they did it all on their own,” as Stallone joked that in seeing Ippolito’s portrayal, “I go, ‘Do I talk like that?’ Now I get it. Now I get it.”

Elsewhere in the conversation, Stallone spoke about what it’s like for him to watch the Rocky movies now (“It’s like you look at a photo of yourself, everyone else likes it, but you go [growl]”) and revealed he’s trying to get Amazon to let him recut 1990’s Rocky V, calling the movie “a thorn in my side.”

“It bothers me to death because I know I took my foot off the gas,” he said, noting that he should have directed it himself and “I should have been more aware of not trying to be cool to the audience.” He joked that if he’s able to do a recut, “It’s not going to be great. It’ll be acceptable.”

Stallone was also asked by the moderator, CBS Sunday Morning’s Tracy Smith, if he thinks he could make it to the top of Hollywood if he was just starting out today.

“It’s a whole different ideology out there… I don’t think so. It’s a whole different mindset,” he replied. “The actors look different. They act different — not the mentality, but the subject matter isn’t something that I could relate to. Like action right now is kind of anachronistic.”

He continued, “For example, if you were going to make The Godfather today, try casting it. Impossible. The whole premise — it just came at a certain time, and that’s why it makes it so unique. So quite often when they do remakes, they’re fundamentally forgetting that that film was based on the social climate, the thing, the look, the ethnicity, everything that there was going on at that time. Today, you couldn’t cast the film.”

The Steps hits bookshelves on Tuesday.

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