Warner Bros Discovery CEO David Zaslav anticipates that the incoming Trump administration will create a more favorable environment for mergers and acquisitions, sparking opportunities for industry consolidation.
He shared this view on a conference call following the company’s quarterly earnings release, noting that Trump’s approach to deregulation could accelerate deal-making in the media sector.
Strict antitrust policies under the Biden administration have hampered mergers across industries, and Zaslav believes consolidation could improve consumer streaming experiences by combining services into more cohesive offerings. Warner Bros Discovery shares rose by 11% on Thursday but have still lost about 25% of their value this year.
The company’s earnings report highlighted a surprise quarterly profit due to cost controls and a record surge in streaming subscribers driven by exclusive Olympic streaming rights and bundling with Disney+ and Hulu. The Max streaming service, home to Max and Discovery+, added 7.2 million subscribers, surpassing the projected 6.28 million, marking the platform’s best quarterly gain to date.
Zaslav called this growth a “meaningful moment” that reflects two years of focused expansion and successful cost-cutting efforts. The streaming unit’s adjusted earnings before interest, taxes, depreciation, and amortization more than doubled to $289 million.
However, Warner Bros Discovery’s revenue fell slightly short of expectations, with TV network revenue rising 3% to $5 billion while its studio segment declined by 17%. The company’s studio division struggled to match the prior year’s success with films like “Barbie.” In August, the company took a $9 billion write-down on its television assets, highlighting ongoing challenges in the traditional TV sector.
