Warner Bros. Discovery reported a $148 million loss in the third quarter, hitting a sour note as the company began fielding interest from would-be buyers as Hollywood braces for a transforming deal.
Earnings for the entertainment company that includes HBO, CNN and the Warner Bros. film and TV studios fell short of analyst expectations. A year ago, the company reported profit of $135 million for the third quarter.
Revenue of $9.05 billion declined 6% from the year-ago period. The company swung to a loss of 6 cents a share, compared to last year’s earnings of 5 cents a share.
Still, Chief Executive David Zaslav spent much of Thursday’s call with analysts touting his company’s underlying strengths — while avoided giving details about the company’s sale.
“It’s fair to say that we have an active process underway,” Zaslav said.
Warner Bros. Discovery on Thursday reiterated it is forging ahead with previously announced plans to split into two separate entities by next spring. However, the Warner board acknowledged last month that it was also entertaining offers for the entire company — or its parts — after David Ellison’s Paramount expressed its interest with formal bids.
Paramount has made three offers, including a $58 billion in cash and stock for all of Warner Bros. Discovery. That bid would pay Warner stockholders $23.50 a share.
The Ellison family appears determined to win one of Hollywood’s most storied entertainment companies to pair with Paramount, which the Ellisons and RedBird Capital Partners acquired in August.
But Warner Bros. Discovery’s board, including Zaslav, voted unanimously to reject Paramount’s offers and instead opened the auction to other bidders, which is expected to lead to the firm changing hands for the third time in a decade.
Board members are betting the company, which has shown flickers of a turnaround, is worth more than the offers on the table. Despite its rocky third-quarter results, Warner’s stock held its ground in early morning trading at around $22.60 a share.
“Overall we are very bullish,” Zaslav said of the company’s business prospects.
“When you look at our films like ‘Superman,’ ‘Weapons’ and ‘One Battle After Another,’ the global reach of HBO Max and the diversity of our network’s offerings, we’ve managed to bring the best, most treasured traditions of Warner Bros. forward into a new era of entertainment and [a] new media landscape,” he said.
But the company’s results underscored its business challenges.
The studio witnessed a major decline in advertising revenue in the third quarter, reporting $1.41 billion, down 16% from the previous year, which executives attributed to declines in the audience for its domestic linear channels, including CNN, TNT and TLC.
Distribution revenue also took a hit, as the company reported sales of $4.7 billion, a decrease of 4% compared to last year.
Studio revenue increased 24% to $3.3 billion, powered by the success of DC Studios’ “Superman,” horror flick “Weapons” and the latest installment of “The Conjuring.” But even those box office wins couldn’t totally offset shortfalls in other areas of its content business.
Last year, the company was able to sub-license its rights to broadcast the Olympics in Europe, which pushed content revenue to $2.72 billion. But this year, revenue was down 3% to $2.65 billion.
Burbank-based Warner Bros. has had a string of success in theaters, with nine films opening at the top spot globally at the box office. The studio recently surpassed $4 billion in worldwide box office revenue, making it the first studio to do so this year. Warner Bros. last achieved that milestone in 2019.
Zaslav would like to continue with Warner’s break-up plans, which were announced last June.
The move would allow him to stay on to manage a smaller Hollywood-focused entity made up of the Warner Bros. studios, HBO, streaming service HBO Max and the company’s vast library, which includes Harry Potter movies and award-winning television shows such as “The Pitt.”
The company’s large portfolio of cable channels, including HGTV, Food Network and Cartoon Network, would become Discovery Global and operate independently.
Beyond Paramount, Philadelphia-based Comcast, Netflix and Amazon have expressed interest in considering buying parts of the company.
The company said its third quarter loss of $148 million was the result of a $1.3 billion expense, including restructuring costs.
NBCUniversal owner Comcast is indeed interested in some of Warner Bros. Discovery’s assets.
On a Thursday call with analysts to discuss third-quarter earnings, Comcast President Mike Cavanagh suggested the Philadelphia giant might bid for certain Warner assets, primarily the Warner Bros. film and television studios and its streaming service HBO Max.
Comcast isn’t looking to acquire the entire company or Warner’s large portfolio of cable channels that include CNN, TBS and Food Network. Instead, Cavanagh suggested that Comcast’s interest would be more narrow.
He noted that NBCUniversal and Warner Bros. have compatible businesses. Comcast wants to grow its studios business and its struggling streaming service, Peacock, which lost $217 million during the quarter.
“You should expect us to look at things that are trading in our space … It’s our job to try to figure out if there are ways to add value,” Cavanagh told analysts.
But he added a note of caution, saying the company didn’t feel that a merger was “necessary.”
“The bar is very high for us to pursue any [merger] transactions,” he said.
The Warner Bros. Discovery auction comes amid deep turmoil in the industry. Traditional entertainment companies, including Warner and NBCUniversal, have long relied heavily on cable programming fees to boost profit but consumers have been scaling back on pay-TV subscriptions amid the move to streaming.
To address that challenge, Comcast is spinning off its cable channels, including CNBC, MSNBC, USA and Golf Channel, into a separately traded company called Versant. That process is expected to be complete this year.
As part of the transition, the liberal-leaning MSNBC is changing its name to MS Now and dropping the peacock from its network logo, reflecting its pending exit from NBC, which will remain part of Comcast.
Cavanagh suggested that Comcast would not double down in a declining cable channel business that it was already exiting.
But Warner has other compelling businesses, including HBO and its Warner Bros. film and television studio. The Warner Bros. studio has released a string of movie blockbusters this year, including “Superman” and “A Minecraft Movie.”
Warner and NBCUniversal are investing in their respective streaming services but both lag Netflix, YouTube and Walt Disney Co. in terms of subscribers and engagement. Peacock has 41 million subscribers; the service has lost billions of dollars since Comcast launched it five years ago.
To shore up Peacock and the NBC broadcast network, Comcast has doubled down on sports, including striking a $27-billion, 10-year deal for NBA basketball, a contract that kicked in this month with the new season. (Nielsen ratings for the inaugural NBA game on NBC last week were strong — nearly 5 million viewers).
Most analysts believe that Ellison’s Paramount is in the best position to win Warner Bros. Discovery. They point to the Ellison family’s determination, wealth and political connections. Tech titan Larry Ellison, who is backing his son’s bid, is the second-richest man in the world behind Elon Musk, and President Trump views the elder Ellison as a good friend.
In contrast, Trump has displayed a dim view of Comcast Chairman and Chief Executive Brian Roberts, in large part, because of Comcast’s ownership of MSNBC, which Trump has accused of being an arm of the Democratic National Committee.
The tension has led observers to conclude that Comcast would face a stormy regulatory review process with Trump overseeing the Department of Justice, which would likely perform an anti-trust review of any major transaction for Warner Bros. Discovery.
Concerns about Comcast’s ability to get deals through the Trump administration may be overblown, Cavanagh said.
“I think more things are viable than maybe some of the public commentary [suggests],” Cavanagh said.
Paramount Chairman David Ellison’s latest offer to buy Warner Bros. Discovery contained a twist:
Should Paramount, backed by tech billionaire Larry Ellison, pull off the purchase, Warner Bros. Discovery Chief Executive David Zaslav could stay on to help lead the combined enterprise.
“They’re sweetening the pot,” Paul Hardart, a professor at New York University’s Stern School of Business, said of the Ellison family. “It just shows all the little arrows in their quiver they’re using to try to push this deal.”
David Ellison’ unexpected olive branch to Zaslav was contained in a letter this month to Warner Bros. Discovery’s board that offered $58 billion in cash and stock for the entire company. The move underscores the family’s determination to win the entertainment company that includes HBO, CNN and Warner Bros. film and television studios — and an obstacle in their path.
After hustling for decades to get to the big stage, Zaslav, 65, isn’t ready to relinquish the reins. He’s eager to prove critics wrong and complete a turnaround after three painful years of setbacks and cost cuts to reduce the company’s mountain of debt.
Warner Bros. Discovery board members, including Zaslav, have unanimously voted to reject Paramount’s three bids, viewing them as too low and not in the best interest of shareholders, according to two people close to the company who were not authorized to comment.
The board supports Zaslav’s desire to forge ahead with a planned split of the company next spring. But it also has opened the auction to other potential suitors, which is expected to lead to the firm changing hands for the third time in a decade.
Representatives of Zaslav, Warner Bros. Discovery and Paramount declined to comment.
David Ellison’s audacious offer is being guaranteed by his father, Larry Ellison, the world’s second richest man with a net worth that exceeds $340 billion. The Ellisons’ proposal includes paying 80% cash to Warner shareholders and the rest in stock, according to two people familiar with the matter who weren’t authorized to comment. The most recent offer was $23.50 a share.
The Ellisons began their campaign last month, just weeks after David Ellison’s Skydance Media, along with RedBird Capital Partners, picked up the keys to Paramount, which includes CBS, MTV, Nickelodeon and the Melrose Avenue film studio, which has been depleted by decades of underinvestment.
The proposed addition of the more vibrant Warner Bros. would give the Ellisons an unparalleled entertainment portfolio with DC Comics including Superman, “Top Gun,” Scooby-Doo, Harry Potter, “The Matrix” and “The Gilded Age.”
The family would control streaming services HBO Max and Paramount+, nearly three dozen cable channels, including HGTV, Food Network and TBS, and two legacy news operations — CNN and CBS News.
It would also accelerate the trend of uber billionaires, including Amazon’s Jeff Bezos and SpaceX’s Elon Musk, of owning prominent news, entertainment and social media platforms. Larry Ellison also is part of a U.S.-based consortium lined up by President Trump to buy TikTok from its Chinese owners.
“If a trade deal with China is imminent, and TikTok would be aligned, then it would create a new media colossus, the likes of which we haven’t seen,” said veteran executive Jonathan Miller, chief executive of the investment firm Integrated Media Co.
Paramount is in talks to merge with Warner Bros. Discovery.
(Al Seib / Los Angeles Times; Dania Maxwell / Los Angeles Times)
The drama is unfolding as Paramount on Wednesday slashed 1,000 workers in the first round of cuts since Ellison took over. A second wave of layoffs — affecting another 1,000 workers — is expected in the coming weeks, helping fulfill a promise made to Wall Street by Ellison and Redbird to reduce expenses by more than $2 billion.
Combining with Warner Bros. would bring more layoffs, analysts said, and a potential hollowing out of a historic studio.
“Merger after merger in the media industry has harmed workers, diminished competition and free speech, and wasted hundreds of billions of dollars better invested in organic growth,” the Writers Guild of America West, said last week in a statement in opposition to the proposed unification. “Combining Warner Bros. with Paramount or another major studio or streamer would be a disaster for writers, for consumers, and for competition.”
Critics point to a long list of media merger misfires, including the disastrous AOL Time Warner merger a quarter century ago. Some critics contend Walt Disney Co.’s $71-billion purchase of much of Rupert Murdoch’s entertainment holdings didn’t live up to expectations, and AT&T whiffed its $85-billion deal for Time Warner, handing it to Zaslav’s Discovery four years later for $43 billion.
The New York native, a descendant of Jewish immigrants from Poland and Ukraine, had spent 16 years running the Discovery cable channel group, a respectable business, but one that lacked Hollywood flash.
Zaslav grew up on the fringe of New York City, in Ramapo, N.Y., where he’d been a promising tennis player who proudly wore his athletic gear to middle school. Tennis was his identity — until he started getting beat by players he used to whip.
Zaslav’s coach sat him down, bluntly saying he wasn’t putting in the work.
“I vowed that day I would never be outworked again,” Zaslav said during a 2023 commencement address to Boston University graduates. Underlings have long marveled at his indefatigable work ethic.
The speech was meant to be his triumphant return to his alma mater. Zaslav had finally made it to Hollywood, where he was now holding court in an exquisite corner office that had belonged to studio founder Jack Warner.
Zaslav had big plans to turn around Warner Bros. But, in Boston, he suffered a beatdown.
The Writers Guild of America had just gone on strike against his and other Hollywood studios. Protesters heckled Zaslav. Students booed. A plane flew overhead, waving a banner that read: “David Zaslav Pay Your Writers.”
He had assumed control a year earlier, in April 2022, just as Wall Street soured on media companies that were spending wildly to build streaming services to compete with Netflix.
Zaslav inherited a venture bleeding billions of dollars to get into streaming. The merger itself saddled the company with $55 billion of debt. Warner’s stock plummeted.
He and his team spent the first few years slashing divisions, canceling TV programs and contracts, and shelving movies. To further reduce expenses, the company laid off thousands of workers. Hollywood soon viewed Zaslav with derision.
It didn’t help that Zaslav has long been one of the most handsomely compensated executives in America.
There were high-profile stumbles, including jettisoning staff of the tiny Turner Classic Movies channel and an ill-conceived rebrand of its streamer to “Max” before changing the name back to HBO Max.
“The Warner Bros. Discovery merger was a well-intended failure,” Hardart said. “The cable subscriber base shrank at a faster rate than most people had forecast. … Thousands have lost their jobs, the HBO brand has been reimagined and reimagined, films have been mothballed and the future of the Warner Bros. studio is today uncertain.”
Warner Bros. Discovery paid down $20 billion in debt, but $35 billion remains. The debt load has nearly suffocated the company, making it a vulnerable target.
“There was a lot of fixing that David Zaslav and his team had to do,” Bank of America media analyst Jessica Reif Ehrlich said in a recent interview. “It’s been three years of incredibly heavy lifting — but that’s pretty much done now.”
In a note to investors last week, Ehrlich wrote Warner’s strong franchises, including DC Comics, and its voluminous library make it “an extremely attractive potential acquisition target,” one that could fetch $30 a share. Her firm carries a “buy” rating on the stock.
Warner Bros. Discovery Chief Executive David Zaslav and AT&T Chief Executive John Stankey shake hands on May 17, 2021, in New York City.
(Preston Bradford / Discovery)
Last summer, Zaslav announced plans to split the company in two halves.
Zaslav would run Warner Bros., which would consist of the Burbank studios, HBO and the HBO Max streaming service. Longtime lieutenant Gunnar Wiedenfels would helm Discovery Global, made up of the firm’s international businesses and basic cable channels, which face an uncertain future in the streaming era.
Those who know Zaslav believe he’s working to stave off the Ellison takeover, in part, because he wants the chance to bring the company back to its glory, which would ultimately make it more valuable for its investors and prospective buyers.
For Warner management, that’s part of the rub. The Ellisons showed up just as the company was displaying signs of a turnaround, including a hot streak by Warner Bros. that includes “A Minecraft Movie,” Ryan Coogler’s “Sinners,” James Gunn’s “Superman,” Formula One adventure “F1: The Movie,” and horror flick “Weapons.”
Larry, from left, Megan and David Ellison attend the premiere of Paramount Pictures’ “Terminator Genisys” at Dolby Theatre on June 28, 2015.
(Lester Cohen / WireImage)
Ellison’s bidding was designed to thwart Warner’s planned corporate breakup.
For now, analysts said, Zaslav and the Warner board’s current strategy is solid because they have effectively driven up the stock price, which has doubled to $21 a share since the Ellison’s interest became known in mid-September.
“They are doing the right thing,” Hardart said. “In any sale, you try to beat the bushes and get as many people interested. But at some point the board is going to have to make a decision.”
Added one investor: “They’ve gotten Paramount-Skydance to bid against itself, and that only goes so far.”
Analysts expect Philadelphia giant Comcast, owner of NBCUniversal, and potentially Netflix, Apple or Amazon to take a look at the company’s studio, library and streaming assets.
But many see the Ellison’s Skydance as having the edge.
Paramount, in its recent letter to the Warner board, argued that it was the best and most logical buyer.
“What Skydance offers WBD, in many ways, is what it offered Paramount: The ability to be aggressive and push all aspects of the business in a way that most people or companies that have less capital just can’t do,” Miller said. “They are deploying real capital, and they are being the most aggressive folks in the industry right now.”
Warner Bros. Discovery has officially acknowledged the company is up for sale, marking the third time in a decade that its storied assets have been on the auction block.
The company’s board announced Tuesday that it has initiated “a review of strategic alternatives … in light of unsolicited interest the Company has received from multiple parties for both the entire company and Warner Bros.”
The Ellison family, which owns Paramount, started the bidding late last month. With financial backing from his father, Larry Ellison, David Ellison is looking to build an entertainment juggernaut. The family and RedBird Capital Partners finalized their takeover of Paramount in August, and has since made at least one offer for its rival. Paramount wants to buy the entire company, including its basic cable channels that include CNN, TNT, Food Network and HGTV.
Warner Bros. Discovery stock soared 11% Tuesday to more than $20 a share, valuing the company at $50 billion. That’s the highest level since Discovery swallowed the larger WarnerMedia in April 2022.
The company did not disclose the other entities that have expressed interest in buying the company as a whole, or its stable of assets, including premium cable channel HBO, the HBO Max streaming service and the legendary Warner Bros. film and television studio and its campus in Burbank.
“It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” Chief Executive David Zaslav said in a statement announcing the strategic review.
“After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets,” he said.
The company last summer unveiled its intention to split into two separate publicly traded entities — an arrangement that most observers saw as the unofficial kickoff of the company’s sale.
That separation process will continue, Warner Bros. Discovery said Tuesday.
The company intended to create two stand-alone entities. One would include the Warner Bros. studio and its expansive library of shows and movies, as well as the HBO Max streaming service. Zaslav was planning to run that enterprise.
The second company, Discovery Global, would comprise the basic cable channels and international operations. Chief Financial Officer Gunnar Wiedenfels would lead that operation.
“We view this as a move to initiate the entire bidding process now, for all bidders, even though not every bidder may be interested in all of WBD,” Raymond James analysts Ric Prentiss and Brent Penter wrote in a Tuesday note to investors.
“WBD is telling other bidders they can bid now instead of waiting for the split, or perhaps they even need to bid now since waiting may prove to be too late,” the analysts said.
Warner Bros. Discovery board intends to “evaluate a broad range of strategic options,” including “an alternative separation structure that would enable a merger of Warner Bros. and spin-off of Discovery Global to our shareholders,” it said in a statement.
“Our decision to initiate this review underscores the Board’s commitment to considering all opportunities to determine the best value for our shareholders,” Warner Bros. Discovery Chair Samuel A. Di Piazza, Jr., said in the statement. “We continue to believe that our planned separation to create two distinct, leading media companies will create compelling value. That said, we determined taking these actions to broaden our scope is in the best interest of shareholders.”
The company did not set a deadline or timetable for the strategic alternatives review, although it had previously said the separation into two distinct companies — Warner Bros. and Discovery Global — would be complete by April.
TD Cowen media analyst Doug Creutz indicated Tuesday’s announcement was simply a formality because investors were well aware the company was in play.
“We continue to think a transaction with [Paramount] … is reasonably likely; we are more skeptical that other, more attractive bidders will emerge,” Creutz wrote.
The announcement hit as Warner Bros. Discovery employees already are nervous about the process and the proposed Ellison takeover, which observers believe would spark a massive consolidation and the elimination of hundreds more jobs.
Some already were suffering from deal fatigue as many are veterans of the company’s two previous sales.
In October 2016, the company, then known as Time Warner Inc., announced its sale to phone giant AT&T. President Trump, who was first elected the following month, strenuously objected to the merger. The government challenged the union, and it took nearly two years to win federal approval. The AT&T years were turbulent. The company restructured, then spent billions to build the HBO Max streaming service.
After three years, AT&T threw in the towel after lining up Zaslav, who had long managed the much smaller Discovery. The April 2022 sale to Discovery burdened the company with more than $50 billion in debt.
Since then, Zaslav and his team have tried to streamline the operations, leading to thousands of layoffs. The company’s debt now hovers around $35 billion.
Allen & Company, J.P. Morgan and Evercore have been retained as financial advisors to Warner Bros. Discovery. Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton LLP are serving as legal counsel.
Paramount, backed by billionaire Larry Ellison and his family, has officially opened the bidding for rival Warner Bros. Discovery — a potential massive merger that would dramatically change Hollywood.
Warner Bros. Discovery’s board rejected Paramount’s initial bid of about $20 a share, but talks are continuing, according to two people close to the companies who were not authorized to speak publicly.
One of the knowledgeable sources said Paramount was preparing a second bid.
Warner Bros. Discovery owns HBO, CNN, TBS, Food Network, HGTV and the prolific Warner Bros. movie and television studio in Burbank.
Ellison, one of the world’s richest men, is committed to helping his 42-year-old son, David, pull off the industry-reshaping acquisition and has agreed to help finance the bid, two people close to the situation said.
The younger Ellison, who entered the movie business 15 years ago by launching his Skydance Media production company, was catapulted into the major leagues this summer with the Ellison family’s purchase of Paramount’s controlling stake.
Since then, David Ellison and his team have made bold moves to help Paramount shake more than a decade of doldrums. Buying Warner Bros. Discovery would be their most audacious move yet. The merger would lead to the elimination of one of the original Hollywood film studios, and could see the consolidation of CNN with Paramount-owned CBS News.
Representatives for Paramount and Warner Bros. Discovery declined to comment.
Industry veterans were stunned by the speed of Paramount’s play for Warner Bros. Discovery, noting that top executives had begun working on the bid even as they were putting finishing touches on the Paramount takeover.
One of Paramount’s top executives is a former Goldman Sachs banker, Andy Gordon, who was a ranking member of RedBird Capital Partners, the private equity firm that has teamed up with the Ellisons and has a significant stake in Paramount.
Paramount’s interest prompted stocks of both companies to soar, driving up the market value for Warner Bros. Discovery.
Paramount’s offer of $20 a share for Warner Bros. Discovery was less than what some analysts and sources believe the company’s parts are worth, leading the Warner Bros. Discovery board to rebuff the offer, sources said.
But many believe that Paramount needs more content to better compete in a landscape that’s dominated by tech giants such as Netflix and Amazon.
Paramount has reason to move quickly.
Warner Bros. Discovery had previously announced that it was planning to divide its assets into two companies by next April. One company, Warner Bros., would be made up of HBO, the HBO Max streaming service and the Burbank-based movie and television studios. Current Chief Executive David Zaslav would run that enterprise.
The other arm would be called Discovery Global and consist of the linear cable television channels, which have seen their fortunes fall with consumers’ shift to streaming.
The Paramount bid was seen as an attempt to slip in under the wire because other large companies, including Amazon, Apple and Netflix, may have been interested in buying the studios, streaming service and leafy studio lot in Burbank.
However, Netflix’s co-chief executive Greg Peters appeared to downplay Netflix’s interest during an appearance last week at the Bloomberg Screentime media conference. “We come from a deep heritage of being builders rather than buyers,” Peters said.
Some analysts believe Paramount’s proposed takeover of Warner Bros. Discovery could ultimately prevail because Zaslav and his team have made huge cuts during the past three years to get the various businesses profitable after buying the company from AT&T, which left the company burdened with a heavy debt load. The company has paid down billions of dollars of debt, but still carries nearly $35 billion of debt on its books.
Others point to Warner Bros.’ recent successes at the box office as evidence that Paramount is offering too little.
Despite the tumult at the corporate level, Warner Bros.’ film studio has had a successful year. Its fortunes turned around in April with the release of “A Minecraft Movie,” which grossed nearly $958 million worldwide, followed by a string of hits including Ryan Coogler’s “Sinners,” James Gunn’s “Superman” and horror flick “Weapons.”
Last week at Bloomberg’s Screentime media conference, Ellison declined to comment on Paramount’s pursuit of Warner Bros. or even whether his company had already made a bid. But he did touch briefly on consolidation in Hollywood, saying, “Ironically, it was David Zaslav last year who said that consolidation in the media business is important.”
“There are a lot of options out there,” he added, but declined to elaborate.
After news of Paramount’s interest surfaced, Warner Bros. Discovery‘s stock jumped more than 30%. It climbed as much as $20 a share, but closed Friday at $17.10, down 3.2%.
Paramount also has seen its stock surge by about 12%. Shares finished Friday at $17, down 5.4%
Warner Bros. Discovery is now valued at $42 billion. Paramount is considerably smaller, worth about $18.5 billion.
Warner Bros. said Wednesday it will renew the contract for studio heads Mike De Luca and Pam Abdy after the two orchestrated a string of back-to-back hits at the box office.
The news is a notable reversal of fortune for the co-chairs and co-chief executives of Warner Bros. Motion Picture Group.
Only six months ago, the pair was on thin ice after a series of underperforming films, including Bong Joon Ho’s sci-fi thriller “Mickey 17” and the Robert De Niro-led mob movie “The Alto Knights.”
But the studio’s prospects dramatically changed in April with the release of “A Minecraft Movie,” which hauled in nearly $958 million worldwide. Shortly after, Ryan Coogler’s “Sinners” became a lasting hit at the box office, followed by “Final Destination Bloodlines,” “F1 The Movie” (which Warner Bros. distributed), James Gunn’s “Superman,” horror flick “Weapons” and the final installment of “The Conjuring.”
In a memo to staff Wednesday, Warner Bros. Discovery CEO David Zaslav credited Abdy and De Luca for the improved performance at the box office.
He touted the studio’s “balanced” slate with big blockbusters, films based on established intellectual property, horror movies and original works.
“Mike and Pam’s unwavering leadership and commitment to this business has been critical to our success this year,” he wrote. “We have a lot to be grateful for and much to celebrate including several of this year’s best reviewed movies, many of which have pierced the culture zeitgeist in profound ways while also delighting moviegoers around the world.”
Warner Bros. recently surpassed $4 billion at the global box office, the first time it has done so since 2019 and the first studio to reach this mark this year.
“We have the privilege to do this job because of the support and trust [Zaslav] has put in us, and in all of you,” De Luca and Abdy said in an internal note to employees. “We could not be more excited to be leading this team as we introduce an exciting slate of films in the coming years and continue making every film experience an event worthy of the Warner Bros. shield.”
