Paramount Global

WBD Q2: Streaming Up, TV & 'Supergirl' Weigh Down Results

Warner Bros. Discovery reported Q2 2026 results showing overall revenue decline driven by weaker TV and studio businesses, while streaming grew. The company posted $8.7 billion in revenue (down 11% year‑over‑year) and beat EPS expectations with $0.06 per share. Streaming revenue rose 10% to $3.1 billion and operating income grew 75% to $512 million. Studio revenues fell 39% to $2.3 billion with operating income plunging 89%, amid the poor box office performance of the film 'Supergirl' (currently $126 million worldwide). TV advertising revenue declined 22% to $1.7 billion, partly due to loss of NBA broadcast rights. Separately, UK regulators approved the planned takeover of Warner Bros. by Paramount Skydance, while US legal and union challenges to the $110 billion merger remain ongoing.

Court Delays Paramount–Warner Trial Until March

A U.S. judge has scheduled the trial over competition lawsuits challenging Paramount’s proposed takeover of Warner Bros. for early March next year, delaying progress on the roughly $111 billion deal. Lawsuits were filed by multiple U.S. states and the screenwriters’ union; the judge previously signalled grounds for a preliminary injunction. Paramount has promised Warner shareholders additional payments of about $650 million per quarter if the acquisition is not completed by the end of September, likely meaning at least $1.3 billion extra. The companies set a contractual close deadline of June 4, 2027; if that passes Warner may terminate the deal and claim a $7 billion break fee. The dispute has raised political concerns about the editorial independence of CNN under new ownership and highlights broader regulatory scrutiny of large media mergers.

Paramount Skydance Says WBD Merger Benefits Media, Ads

During its Q2 earnings call, Paramount Skydance said its top priority is closing its proposed acquisition of Warner Bros. Discovery (WBD), arguing the deal will create a larger, creative-first company able to compete with Netflix, Amazon and Apple. CEO David Ellison reiterated confidence the transaction will close despite three recent lawsuits from the Writers Guild of America, a Paramount shareholder and a coalition of 12 state attorneys general alleging reduced competition. Paramount Skydance is simultaneously focused on streaming ad monetization: Paramount+ revenue rose 16% year‑over‑year, streaming ARPU climbed 12%, and Paramount+ added about 2 million subscribers to nearly 82 million. The company plans to converge ad-tech stacks across Paramount+, Pluto TV and BET+ by the end of the summer to unify data and improve ad monetization.