Warner Bros. Discovery reports a $148 million loss as sale process heats up

Warner Bros. Discovery reported a $148-million nonaccomplishment successful the 3rd quarter, hitting a sour enactment arsenic the institution began fielding involvement from would-be buyers arsenic Hollywood braces for a transforming deal.

Earnings for the amusement institution that includes HBO, CNN and the Warner Bros. movie and TV studios fell abbreviated of analysts' expectations. A twelvemonth ago, the institution reported nett of $135 cardinal for the 3rd quarter.

Revenue of $9.05 cardinal declined 6% from the year-earlier period. The institution swung to a nonaccomplishment of 6 cents a share, compared with past year's net of 5 cents a share.

Still, Chief Executive David Zaslav spent overmuch of Thursday's telephone with analysts touting his company's underlying strengths — portion avoiding giving details astir the company's sale.

"It's just to accidental that we person an progressive process underway," Zaslav said.

Warner Bros. Discovery connected Thursday reiterated that it is forging up with antecedently announced plans to divided into 2 abstracted entities by the spring. However, the Warner committee acknowledged past period that it was besides entertaining offers for the full institution — oregon its parts — aft David Ellison’s Paramount expressed its involvement with ceremonial bids.

Paramount has made 3 offers, including $58 cardinal successful currency and banal for each of Warner Bros. Discovery. That bid would wage Warner stockholders $23.50 a share.

The Ellison household appears determined to triumph 1 of Hollywood's astir storied amusement companies to brace with Paramount, which the Ellisons and RedBird Capital Partners acquired successful August.

But Warner Bros. Discovery's board, including Zaslav, voted unanimously to cull Paramount's offers and alternatively opened the auction to different bidders, which is expected to pb to the steadfast changing hands for the 3rd clip successful a decade.

Board members are betting that the company, which has shown flickers of a turnaround, is worthy much than Paramount's offers connected the table. Warner's shares slipped 1.5% to $22.42 connected Thursday.

"Overall we are precise bullish," Zaslav said of the company's concern prospects.

"When you look astatine our films similar 'Superman,' 'Weapons' and 'One Battle After Another,' the planetary scope of HBO Max and the diverseness of our network's offerings, we've managed to bring the best, astir treasured traditions of Warner Bros. guardant into a caller epoch of amusement and [a] caller media landscape," helium said.

Read more: Warner Bros. Discovery is up for sale. Why CEO David Zaslav isn't acceptable to springiness up the reins