Warner Bros. Discovery Eyes Split Amid Revenue Drop

Warner Bros. Discovery reported a mixed first quarter for 2025, with a narrowed net loss of $453 million and 5.3 million new streaming subscribers, totaling 122.3 million. Total revenue declined 10% to $8.98 billion, missing Wall Street expectations amid continued declines in cable TV and studio revenues. Studios revenue fell 18% and TV networks revenue dropped 7%, reflecting industry-wide shifts from cable to streaming. Industry analysts and insiders believe Warner Bros. Discovery is preparing for a company split, likely separating its declining cable networks from its more promising streaming and studio segments, and the company has already adjusted its internal financial reporting accordingly. The company expressed optimism for the second quarter, citing strong box office expectations from new releases like 'A Minecraft Movie' and a robust summer slate. CEO David Zaslav highlighted strategic flexibility and Max’s focus on premium content as key priorities.