Warner Bros Discovery moving towards splitting company, CNBC reports
WBD had laid the groundwork for a possible sale or spin-off of its declining cable TV assets in December by announcing a separation from its streaming and studio operations. It reported results under the new structure for the first time on Thursday.
A split will align the company with Comcast, which is spinning off most of its cable TV networks such as MSNBC and CNBC to position itself for growth in the streaming era.
Analysts have long speculated about a break-up of WBD, formed by the 2022 merger between Warner Media and Discovery.
'WBD would be leaner and have stronger growth potential without cable assets. But finding a buyer could be difficult. Linear TV is deteriorating and WBD has big debts,' said eMarketer analyst Ross Benes.
WBD, which has $38bn (R693.4bn) of gross debt, did not respond to a Reuters request for comment on the CNBC report.
Its CEO David Zaslav said on Thursday the company's programming strength was helping Max attract subscribers in a crowded market for streaming services.
WBD added 5.3-million streaming subscribers in the January to March quarter, more than the 3.1-million estimated by analysts, taking its total to 122.3-million. Its content slate in the period included the third season of HBO's The White Lotus and the medical drama series The Pitt.
However, its results were hampered by a weak showing at the box office as WBD struggled to replicate the success of last year's Dune: Part Two, which grossed more than $700m (R12,7-trillion). Its marquee release for the period, Bong Joon Ho's sci-fi dark comedy Mickey 17, earned only slightly more than its reported budget at the box office.
Studio revenue fell 18% to $2.3bn, missing estimates of $2.7bn, according to Visible Alpha.
The company has, however, made a strong start to the second quarter with Ryan Coogler's horror film Sinners and the blockbuster A Minecraft Movie, which has raked in around $900 million globally, making it the biggest release of 2025 so far.
Revenue at the TV networks segment, which includes CNN, Discovery Channel and Animal Planet, fell 7%.
Overall, revenue fell 10% to $8.98bn, missing analysts' average estimate of $9.60bn, according to data compiled by LSEG. Loss of 18c per share was also larger than expectations for a 13c loss.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
2 days ago
- The Citizen
Mpumalanga car spinner spins his way to global stage
A talented car spinner from Masoyi recently showcased his skills on the global stage at the grand reopening of Red Bull Hangar-7 in Salzburg, Austria, gaining international recognition and strengthening his position as a cultural ambassador for South Africa. Samkeliso Thubane, known as SamSam, is a rare talent whose artistry and dedication to the sport of car spinning have earned him international acclaim. His participation in the prestigious event has not only brought pride to his community, but has also earned him national acclaim and highlighted his role in representing South African youth culture. He has won many spinning competitions around the country, including a particularly notable show called So You Think You Can Spin, where he came first, beating 300 other contestants to take the top spot. He has also won the Red Bull Shay'moto competition twice. ALSO READ: Pienaar coach empowers young girls through soccer The Mpumalanga MEC for culture, sport and recreation, Leah Mabuza, has commended SamSam's accomplishment. 'Thubane has truly distinguished himself as an ambassador of Mzansi through his participation in this international event. He joins the ranks of several Mpumalangan citizens whose talents have been acknowledged beyond our borders. Our province is rich in talent, and SamSam is a shining example of this.' ALSO READ: Sportreach rugby team unstoppable and undefeated Mabuza said Thubane's success is a powerful reminder of the potential that lies within Mpumalanga's youth, and that the Department of Culture, Sport and Recreation remains committed to supporting and nurturing local talent to reach even greater heights. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
3 days ago
- IOL News
Armscor discloses alarming R7. 7 billion budget shortfall impacting South African Air Force maintenance
President Cyril Ramaphosa walking from the presidential jet, which, Armscor says, apparently requires R414 million in funding to be fully maintained. Image: GCIS Armscor, the arms procurement agency for the South African Defence Department, has revealed to Parliament that a staggering budget shortfall of more than R7 billion threatens the maintenance of the South African Air Force (SAAF) aircraft fleet. This happens as the acquisition and maintenance contracts have not been adequately funded for a long time. In a presentation to the Joint Standing Committee on Defence on the status of maintenance contracts of the SAAF aircraft fleet, Armscor said all SAAF platforms for contracting were in place. It also said that the majority of the contracts have spent 100% of their planned cash flow. 'There is a shortfall of approximately R7,7 billion to fund the current fleet. If you average it in terms of an annual basis, it is R2.56 billion, and this implies that the SAAF maintenance is currently at two to three times less than we are currently funded.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ MPs also heard that the implications of the budget shortfall were a reduced fleet availability, and only bare minimum maintenance was done, with essential upgrades postponed, leading to high maintenance costs. 'Armscor is confined to place on-demand contracts. Only the very bare minimum is contracted, and this does not guarantee aircraft availability.' In a clear show of the seriousness of the budget shortfall, the Boeing Business Jet, which President Cyril Ramaphosa travels in, requires R414 million in funding to be fully maintained. The three Falcon aircraft, which Deputy President Paul Mashatile travels in, require R142m to be fully maintained. The 11 Rooivalk combat support helicopters require a massive R2 billion, while the 36 Oryx transport helicopters need R2bn. Armscor said the Rooivalk maintenance contract was R2.5bn, but it was funded to the tune of R469m. Earlier, the Acting Executive Manager for the Dockyard Justice, Ramakokovhu, told the MPs that the Naval Dockyard has 286 technical personnel and suffers from deteriorating infrastructure. 'The 286 technical skills are not sufficient to support the maintenance and upkeep of the South African Navy,' said Ramakokovhu, adding that they required a staff complement of 4,000. The refit of submarine SAS Isandlwana was contracted to a service provider and was conducted in Durban. The ANC MP Pitso Noe said the issue of funding was central to the challenges at Armscor. Noe asked that Defence Minister Angie Motshekga give an account on all the lack of funding and its impact. 'I consider it so serious to the functioning of Armscor and the defence of the country,' he said. DA MP Nicholas Gotsell said it was shocking that Armscor spent R10m as disclosed by Motshekga in a response to a parliamentary question on the board when there was a R7.7 budget shortfall for the air force. 'It is very worrying. We won't accept the lavish boardroom spending while the aircraft are on the verge of being mothballed and the Rooivalk helicopter is barely operational,' Gotsell. 'I am really worried and concerned about the abuse of taxpayers' funds. Armscor can't justify the R10m on board perks when SANDF is forced to cut pilot training hours due lack of fuel and spares,' he said. DA MP Chris Hattingh said the presentations confirmed what they had suspected all along. 'We need to agree that without the reassessment of the defence review, it is impossible to determine what should be the priorities of spending in the limited budget of the Department of Defence,' Hattingh said. IFP MP Russel Cebekhulu said it was God's mercy that South Africa was not attacked from the outside. 'One is at pains with what has been presented before us, with lots of excuses for the failure of our defence equipment in the Navy and Air Force, not being in a workable state of the fleet,' Cebekhulu said. ANC MP Malusi Gigaba said what they heard was expression of a horror story. Gigaba echoed Hattingh's sentiments on the need for a defence review and the need to address the ongoing challenges. 'If we don't deal with these things, we are to remain in the situation we are in. We can't be the one who laments the ongoing decay that we are seeing without taking firm decisions,' he said. Motshekga said the defence force was in constant discussion on how to deal with the challenges. 'We acknowledge the challenges, and there are efforts on the part of Armscor to get things right,' she said. Motshekga also said they were planning to hold a meeting to plan on cost-saving measures.
TimesLIVE
6 days ago
- TimesLIVE
Five nations and EU urge Trump not to impose new aircraft tariffs
Five nations and the EU, as well as airlines and aerospace firms worldwide, have urged the Trump administration not to impose new national security tariffs on imported commercial aircraft and parts, documents released on Tuesday showed. Airlines and aircraft manufacturers have been lobbying President Donald Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement that has yielded an annual trade surplus of $75bn (R1.32-trillion) for the US industry. The documents made public by the US commerce department bared concerns about the fallout of possible new tariffs expressed by companies as well as Canada, China, Japan, Mexico and Switzerland, besides the EU. 'As reliable trading partners, the EU and US should strengthen their trade regarding aircraft and aircraft parts, rather than hinder it by imposing trade restrictions,' the EU wrote. It would consider its options 'to ensure a level playing field', it added. Trump has imposed tariffs of 10% on nearly all aircraft and parts imports. 'No country or region should attempt to support the development of its domestic aircraft manufacturing industry by suppressing foreign competitors,' the Chinese government wrote. Separately, US manufacturer Boeing cited a recent trade deal unveiled in May with Britain that ensures tariff-free treatment for aircraft and parts. 'The US should ensure duty-free treatment for commercial aircraft and their parts in any negotiated trade agreement, similar to its efforts with the UK,' Boeing told the commerce department in a filing. Mexico said in 2024 it exported $1.45bn (R25.7bn) in aircraft parts, a 10th of the total, to the US. The EU said it took US exports of aircraft worth about $12bn (R212.72bn), while exporting about $8bn (R141.82bn) of aircraft to the US. In early May, the commerce department launched a 'section 232" national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for higher tariffs on such imports. Last week, Delta Air Lines and major trade groups warned of tariffs' impact on ticket prices, aviation safety and supply chains. 'US tariffs on aviation are putting domestic production of commercial aircraft at risk,' Airbus Americas CEO Robin Hayes said in a filing. 'It is not realistic or sensible today to create a 100% domestic supply chain in any country.' Boeing said it had been increasing US content in its aircraft over the past decade and its newest models, the 737 MAX 10 and 777X, would have 'more than 88% domestically-sourced content'. The United Auto Workers union, which represents 10,000 aerospace workers, said it supports tariffs and domestic production quotas, adding US aerospace employment has fallen to 510,000 in 2024 from 850,000 in 1990. 'To safeguard the aerospace supply chain across the commercial and defence sectors, comprehensive tariffs and production quotas on several products are needed,' it said. JetBlue Airways opposed new tariffs, however, saying: 'Trade policy should reinforce, not destabilise, the proven systems that keep our aircraft flying safely and affordably.'
