Warner Bros Discovery

What does it do?

Warner Bros. Discovery is one of the biggest media companies in the world, owning some of the most recognizable entertainment brands you've ever heard of — HBO, CNN, Warner Bros. film studio, and discovery+. If you've watched Game of Thrones, The Dark Knight, or anything on HGTV, you've consumed their content. They were formed in 2022 when Discovery Inc. bought WarnerMedia from AT&T in a massive $43 billion deal. Think of them as a company that owns a huge library of movies, TV shows, and news channels, plus a growing streaming service competing with Netflix.

How does it make money?

WBD makes money across three main buckets. First, its Global Linear Networks — meaning traditional cable channels like CNN, TNT, and Discovery — still generate the bulk of revenue through cable subscription fees and advertising, though this is shrinking. Second, its Studios segment earns money from theatrical releases (like Barbie, which earned over $1.4 billion globally) and licensing content to other platforms. Third, its Streaming segment sells subscriptions to Max (formerly HBO Max) and discovery+, which together had over 95 million subscribers as of late 2023. Total revenue came in at $37.3 billion last year, down from $39.3 billion the year before.

Why do investors care?

The core investment argument is that WBD owns an incredible content library — HBO alone is considered one of the most prestigious TV brands ever built — and that this gives Max a real competitive edge in the streaming wars. Investors are betting that CEO David Zaslav can slash enough costs, reduce the $40+ billion debt load, and grow streaming subscribers to build a leaner, profitable company. What has to go right: streaming subscriber growth needs to accelerate, blockbuster films need to keep landing, and cable revenue needs to decline slowly enough to give them time to transition.