HBO Max Hit 131.6M Subs, NBA Exit Squeezed Advertising As WBD Deal Drama Dominates Q4

Warner Bros. Discovery (WBD) reported a challenging fourth quarter with media networks losing subscribers and advertising revenue declining year-on-year due to the loss of NBA rights, while executives David Ellison and David Zaslav navigate complex M&A talks on Wall Street where Paramount may potentially hijack a planned Netflix transaction, with both Paramount and WBD declining to comment during Wednesday's earnings calls ahead of WBD's analyst conference scheduled for 8:30 am ET. Despite the soft quarter, HBO Max managed to reach 131.6 million subscribers, showcasing the streaming service's resilience amidst broader industry challenges. The absence of NBA broadcasting rights significantly impacted advertising revenue, creating a notable year-over-year decline that affected WBD's overall financial performance. Meanwhile, the media landscape is abuzz with speculation about potential deal changes as Paramount emerges as a potential spoiler in Netflix's strategic plans, adding another layer of complexity to WBD's already complicated merger and acquisition strategy.