Warner Bros. Revenue Falls, But Focus Is on Merger

Warner Bros. Discovery reported an 11% revenue drop driven by NBA rights loss and weaker movies, but Bloomberg Intelligence analyst Geetha Ranganathan sees the earnings as a sideshow. She argues the fundamental story is solid, with profitable streaming and margin improvement, and that WBD is well-positioned even if the Paramount Skydance merger fails thanks to a $7 billion termination fee. - WBD revenue fell 11% YoY, advertising down 30%, partly due to lack of NBA games. - Streaming profitability and cost reductions boosted TV EBITDA. - Paramount Skydance merger delayed to June next year, adding uncertainty. - Management team credited with turnaround: streaming now profitable, margins at ~17% vs 20% target. - If merger expires, WBD receives $7 billion termination fee, strengthening its balance sheet. - Analyst views WBD as fundamentally strong and attractive regardless of deal outcome.