Gremlins

Source: Warner Bros

Gremlins

Warner Bros Discovery (WBD) reported mixed Q3 earnings amid ongoing speculation over who might buy the media giant as the theatrical division’s summer mirabilis was offset by ongoing decline in the TV business.

Overall revenues for the quarter ended September 30 fell 6% year-on-year to $9bn and there was a $148m net loss.

The streaming and studios division climbed 8% to $5.3bn and studios reached $3.3bn, driven by a 74% increase in theatrical revenue buoyed by Superman, Conjuring: Last Rites, and Weapons, some F1 residue from Q2, and the arrival on HBO Max of Superman, Sinners, and Final Destination: Bloodlines.

On the subject of theatrical, WBD CEO David Zazslav said the studio would be moving ahead with a Gremlins reboot, with the 1984 film’s original screenwriter Chris Columbus on board to direct and Steven Spielberg serving as executive producer for Amblin Entertainment It is dated to open on November 19, 2027. Warner Bros remains the only studio to have crossed $4bn at the global box office this year.

Streaming revenues were flat on $2.6bn and the subscriber count gained 2.3m over Q2 to reach 128m. HBO Max will launch in the UK & Ireland, Germany and Italy in 2026.

Linear TV revenues fell 22% to $3.9bn, marking an industry-wide trend that has seen the traditional business suffer, and compared poorly to the prior-year period when there was the Olympic Games in Paris and a heavy news cycle in the run-up to the US presidential election.

WBD hierarchy told shareholders in the quarterly letter that the company “remains on track” to separate into Streaming & Studios and Global Networks by mid-2026. The letter added: “The board is evaluating a broad range of strategic options, including proceeding with the planned separation, a potential transaction for the entire company, or separate transactions for the Warner Bros. and/or Discovery Global businesses.”

The letter added that the board would consider an alternative separation structure that would allow a merger involving Warner Bros, while Discovery Global would be spun off to shareholders.

David Ellison’s Paramount is reported to have been rebuffed three times in recent months. Comcast, Amazon MGM Studios and even Netflix, which has repeatedly said it is a builder not a buyer, are also said to be circling. At time of writing WBD shares had dropped marginally to $22.76.

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