Warner Bros. Discovery's Q3 2025: Superheroes Soar, Linear TV Struggles, and a Company on the Brink of Big Changes

Warner Bros. Discovery just released its Q3 2025 financial report, and it paints a clear picture: record-breaking movies and growing streaming numbers are battling it out with a rapidly shrinking traditional TV business, fueling urgent talks of a company split or sale.

TL;DR

• WBD reported a $148 million loss in Q3 2025, despite hits like Superman boosting studio revenue by 74%.
• HBO Max added 2.3 million global subscribers, reaching 128 million, driven by international expansion and popular new series.
• The company is actively exploring a split of its high-growth studio/streaming assets from its declining linear TV networks, with a decision expected by year-end amidst multiple buyer interests.

Imagine a Hollywood studio riding high on superhero blockbusters, bringing in hundreds of millions at the global box office. Now picture that same company battling a different kind of monster: a steep decline in its traditional television empire. That's the story Warner Bros. Discovery (WBD) is telling after its third-quarter 2025 earnings report, released on November 6, 2025. It's a tale of two very different businesses under one roof, and it's pushing WBD towards a major crossroads.

The numbers were a mixed bag that clearly highlighted the need for strategic change. Overall, WBD swung to a net loss of $148 million for the quarter on $9 billion in revenue, which was down 6% from a year ago. A significant portion of this loss, $1.3 billion, came from restructuring expenses. But dig a little deeper, and you find some truly heroic performances alongside some rather dramatic downturns.

Box Office Bonanza: How Superman and Friends Boosted Studio Earnings

Let's start with the good news, and it's pretty super: the big screen delivered. Warner Bros. studio strength was a clear bright spot, with movie revenue surging an impressive 74%. This theatrical success pushed overall Studios revenue up 23% to $3.3 billion for the quarter. Source: [Deadline, "Three Hits in Three Months Buoyed Warner Bros. As Advertising Tanked at Media Networks in a Mixed Third Quarter That Reinforces the Logic of a Sale Or Split," November 6, 2025].

Leading the charge was James Gunn's Superman, which flew past expectations with $615 million worldwide since its July 11 release. Not far behind, Weapons grossed over $267 million, and The Conjuring: Last Rites scared up more than $490 million since its September 5 debut. These films, along with a strong holdover from F1, helped WBD become the first studio this year to surpass $4 billion in worldwide box office revenue, a milestone last achieved by the company in 2019. Source: [Los Angeles Times, "Warner Bros. Discovery reports a $148 million loss as sale process heats up," November 6, 2025].

CEO David Zaslav highlighted the studio's "four-part strategy" to leverage major tentpoles like Superman, Batman, and Wonder Woman, alongside "mini tentpoles" such as Gremlins and Goonies, and disciplined original content. He noted that iconic intellectual property (IP) like Harry Potter and Lord of the Rings has been "underused," with plans for a new Lord of the Rings film already in development with Peter Jackson for 2027. This strategy shows the enduring power of classic franchises in a fragmented entertainment landscape. Source: [The Hollywood Reporter, "Man of Steel Delivers Box Office Heroics in Q3," November 6, 2025].

Streaming on the Rise: HBO Max Expands Its Global Reach

While the studio side delivered cinematic thrills, HBO Max continued its steady march forward in the streaming wars. The service added a healthy 2.3 million global subscribers in Q3 2025, pushing its total worldwide count to 128 million. Source: [Cord Cutters News, "HBO Max Added 2.3 Million Subscribers Globally in Q3 2025," November 6, 2025].

This growth was largely attributed to successful international expansion, including launches in new markets like Australia. The positive reception there has boosted confidence for upcoming launches in Italy, Germany, the United Kingdom, and Ireland in Q1 2026. These are markets where HBO and Warner Bros. content already enjoys strong recognition. Source: [Broadband TV News, "Warner Bros. Discovery has pushed its global streaming base to 128 million subscribers," November 6, 2025].

Content-wise, HBO and HBO Max snagged a combined 30 Emmy awards for 12 original series, reaffirming its reputation for premium programming. The premiere of IT: Welcome to Derry in October also performed exceptionally well, ranking as one of HBO Max's all-time top performing premieres, with its first episode drawing 15 million viewers. Source: [Cord Cutters News, "HBO Max Added 2.3 Million Subscribers Globally in Q3 2025," November 6, 2025]. The streaming segment's adjusted EBITDA also saw a 24% year-on-year increase, showing improved profitability.

The Achilles' Heel: Linear TV's Continuing Decline

Now for the challenge that's driving WBD's current strategic rethink: the Global Linear Networks segment. While the studio and streaming businesses generated profit of $1 billion (up 58%) on $5.3 billion revenue (up 8%), the linear TV side saw its profit fall 20% to $1.7 billion on revenue down a significant 22% to $3.8 billion. Source: [Deadline, "Three Hits in Three Months Buoyed Warner Bros. As Advertising Tanked at Media Networks in a Mixed Third Quarter That Reinforces the Logic of a Sale Or Split," November 6, 2025].

Advertising revenue across WBD's networks, including CNN, TNT, and TLC, plummeted 16% to $1.4 billion. This was partly due to tough comparisons with Q3 2024, when WBD held European rights to the Summer Olympic Games in Paris. However, the ongoing slump in domestic pay-TV subscribers and general cord-cutting trends are undeniable long-term headwinds. Distribution revenue also dropped 8%. Source: [Variety, "Warner Bros. Discovery Swings to Q3 Loss, With ‘Superman’ Box Office Offset by Ad Declines," November 6, 2025].

Bloomberg Intelligence senior media analyst Geetha Ranganathan highlighted this stark contrast: the linear TV networks are a "no growth" business, plagued by "constant cord cutting, ratings weakness," even though they generate significant EBITDA (around $6-7 billion). However, the valuation multiple for such a business is only "mid-single digits," making it less attractive to investors compared to the high-growth studio and streaming assets. Source: [Yahoo Finance Video, "Wbd Earnings: What investors learned about a potential split," November 6, 2025].

The Looming Decision: Split, Sell, or Both?

This divergence in performance is why WBD is actively considering a major corporate restructuring. The company has already internally divided its businesses into two segments. "Plan A," as stated by senior reporter Allie Canal, remains a formal separation of its studio and streaming (Warner Bros.) from its linear television (Discovery Global) by mid-2026. Source: [Yahoo Finance Video, "WBD earnings: What investors learned about a potential split," November 6, 2025].

However, WBD is also "open to all strategic alternatives," including a potential sale of the full company or parts of the business. The board recently rejected three offers from Paramount’s new owner, David Ellison, reportedly for $23.50 per share or $58 billion in cash and stock for the entire company. WBD has since hired an investment bank and opened a data room, signaling it's actively entertaining other suitors. Source: [Deadline, "Three Hits in Three Months Buoyed Warner Bros. As Advertising Tanked at Media Networks in a Mixed Third Quarter That Reinforces the Logic of a Sale Or Split," November 6, 2025].

Potential bidders include Netflix, Comcast, and Amazon-MGM. Netflix, for instance, is likely only interested in the studio side of the business to gain control of its valuable IP, having no interest in owning linear networks. Paramount Global has reportedly been interested in acquiring the entire company. WBD hopes to declare a transaction decision by year-end; if no sale materializes, it will move forward with the planned split. Source: [Yahoo Finance Video, "WBD earnings: What investors learned about a potential split," November 6, 2025].

Quote Box: The Value Proposition

"The studio and streaming businesses are progressing really, really well. And this is really where the value for Warner Brother's Discovery is... The valuation multiple that you're going to be slapping on that business is going to be something like mid teens."

— Geetha Ranganathan, Bloomberg Intelligence Senior Media Analyst (Source: Yahoo Finance Video, November 6, 2025)

A Controversial Move: Sports Leaving HBO Max

Amidst these big corporate discussions, WBD also revealed a significant shift in its sports strategy: it plans to remove live sports from HBO Max in the US and launch a new, standalone streaming service called TNT Sports sometime next year. This new app would be part of the Discovery Global spinoff, should the company split. Source: [SportsBusiness Journal, "Warner Bros. Discovery Removing Sports From HBO Max, Launching Standalone TNT Sports App," November 6, 2025].

CEO David Zaslav explained that in the US, sports on HBO Max haven't provided "enough value in terms of incremental subs." He stated, "HBO Max is much stronger as being a motion picture and storytelling product, not dependent on rental sports." This stance contrasts with other major streamers like Amazon Prime and Peacock, which actively bundle sports and scripted content to drive subscriber growth and retention. Source: [SportsBusiness Journal, "Warner Bros. Discovery Removing Sports From HBO Max, Launching Standalone TNT Sports App," November 6, 2025].

This isn't Zaslav's first dismissive comment about sports; in 2022, he suggested WBD "didn’t have to have" a new deal with the NBA, ultimately leading to the company losing those rights. While TNT Sports has backfilled with MLB playoff games, College Football Playoff early rounds, and the French Open, critics argue that without consistent, major league programming like the NBA or NFL, a standalone app faces a tough road to find a market niche and prevent subscriber churn. Source: [SportsBusiness Journal, "Warner Bros. Discovery Removing Sports From HBO Max, Launching Standalone TNT Sports App," November 6, 2025].

Behind the Headlines: Counterpoints and Considerations

While the studio and streaming numbers offered some relief, the uncertainty surrounding WBD's future isn't without its own drama. For one, the ongoing "split or sell" debate is creating ripples across the industry. Lionsgate CEO Jon Feltheimer recently called media mergers and acquisitions uncertainty "incredibly disruptive," a sentiment likely shared internally at WBD, where employees and partners face an unclear path forward. Source: [Jill Goldsmith, "Lionsgate CEO Calls Media M&A Uncertainty “Incredibly Disruptive”," November 6, 2025 - part of the Deadline article chain].

Another point to consider: despite the box office triumphs, WBD shares slipped 1.5% to $22.42 on the day of the earnings report, reflecting investor caution. This suggests that even superhero-sized wins aren't enough to fully alleviate concerns about the broader business challenges and the debt mountain WBD is working to reduce. Source: [Los Angeles Times, "Warner Bros. Discovery reports a $148 million loss as sale process heats up," November 6, 2025]. The success of Q3 also comes with a caveat: the studio segment faces headwinds in Q4 due to a difficult comparison with a previous HBO Max library licensing deal, meaning the good times might not last uninterrupted.

Example: Sarah, a devoted DC Extended Universe fan, eagerly streamed Superman on HBO Max after seeing it in theaters. She loves having all her favorite Warner Bros. movies and HBO series in one place. Hearing about the potential removal of sports and the company's possible split, she wonders if her beloved HBO Max will change too drastically. Will her subscription still offer the same value? The evolving landscape leaves many viewers like Sarah in a state of 'wait and see,' highlighting the consumer impact of such large-scale corporate decisions.

What Does This Mean for You? Practical Takeaways

• For Streamers: Expect HBO Max to double down on premium scripted content, movies, and international originals. If you're a US-based sports fan, be prepared for TNT Sports content to potentially move to a separate app in 2026, meaning another subscription might be needed to watch.
• For Movie Fans: Warner Bros. is committed to its tentpole strategy, so anticipate more big-budget superhero films, horror franchises, and reboots of beloved IP like Lord of the Rings. Your theatrical experience with their films seems secure and is a company priority.
• For Investors & Industry Watchers: The next few months are critical for WBD. A decision on a sale or split is expected by year-end, which could drastically reshape the media landscape. Watch for announcements regarding potential buyers and the valuation of WBD's distinct business segments.
• For Traditional TV Viewers: The decline in linear TV is accelerating, reinforcing the industry's shift. While channels like CNN and TNT will continue to exist, their long-term future within WBD (or a spun-off entity) will depend on how the company manages declining ad revenues and cord-cutting.

FAQ

When did Warner Bros. Discovery release its Q3 2025 earnings report? Warner Bros. Discovery released its Q3 2025 financial results on November 6, 2025. How many subscribers did HBO Max add in Q3 2025? HBO Max added 2.3 million global subscribers in Q3 2025, bringing its total to 128 million worldwide. What was WBD's overall financial performance in Q3 2025? WBD reported a net loss of $148 million on $9 billion in revenue, a 6% decrease from the previous year, partly due to $1.3 billion in restructuring expenses. What is the future of sports content on HBO Max in the US? WBD plans to remove sports from HBO Max in the US and launch a separate, standalone TNT Sports streaming app sometime in 2026, which would likely be part of the Discovery Global spinoff.

Sources

• Cord Cutters News, "HBO Max Added 2.3 Million Subscribers Globally in Q3 2025," November 6, 2025.
• Yahoo Finance Video, "WBD earnings: What investors learned about a potential split," November 6, 2025.
• Deadline, "Three Hits in Three Months Buoyed Warner Bros. As Advertising Tanked at Media Networks in a Mixed Third Quarter That Reinforces the Logic of a Sale Or Split," November 6, 2025.
• Variety, "Warner Bros. Discovery Swings to Q3 Loss, With ‘Superman’ Box Office Offset by Ad Declines," November 6, 2025.
• SportsBusiness Journal, "Warner Bros. Discovery Removing Sports From HBO Max, Launching Standalone TNT Sports App," November 6, 2025.
• The Hollywood Reporter, "Man of Steel Delivers Box Office Heroics in Q3," November 6, 2025.
• Los Angeles Times, "Warner Bros. Discovery reports a $148 million loss as sale process heats up," November 6, 2025.
• Broadband TV News, "Warner Bros. Discovery has pushed its global streaming base to 128 million subscribers," November 6, 2025.