Warner Bros. Discovery Q4 Core EBITDA Hits $2.22B, Paramount Raises Bid to $31
Warner Bros. Discovery’s Q4 core EBITDA reached $2.22 billion, beating consensus by $110 million as revenue fell 5.7% to $9.46 billion. The board confirmed Netflix’s $27.75 per share offer remains in place but indicated Paramount’s revised $31 bid with a $7 billion termination fee could be superior.
1. Q4 Financial Results
Warner Bros. Discovery reported core EBITDA of $2.22 billion for the fourth quarter, exceeding estimates of $2.11 billion despite a 5.7% decline in revenue to $9.46 billion. Streaming revenue grew 4% ex-FX and the company ended the period with nearly 132 million subscribers.
2. Intensifying Takeover Battle
The board reaffirmed its merger agreement with Netflix, which values the business at $27.75 per share, but noted that Paramount’s revised $31 per share bid—backed by a $7 billion termination fee—could reasonably be expected to be superior. Paramount’s increase in breakup fees from $5.8 billion has escalated pressure on Netflix to respond within four days if deemed superior.
3. Segment Performance and Outlook
The studios division delivered a 52% year-on-year core profit increase to $2.55 billion, led by strong theatrical releases including Wuthering Heights. Management cited momentum in Germany and Italy, forecasting global streaming subscribers to exceed 140 million by the end of Q1 and target over 150 million by year-end 2026.