Warner Bros. Discovery: WBD Company Profile

Warner Bros. Discovery (WBD) is a leading global media and entertainment company that creates and distributes a differentiated and comprehensive portfolio of content across television, film, streaming, and digital platforms. The company was formed through the merger of Discovery, Inc. and WarnerMedia in April 2022, aiming to build a modern entertainment entity that leverages iconic brands, world-class storytelling, and innovative distribution strategies to engage global audiences.

Company Profile

WBD distinguishes itself in a rapidly evolving media landscape by focusing on premium content creation, global direct-to-consumer (DTC) streaming services, and a robust portfolio of linear television networks. The company is headquartered in New York, with significant operations across the United States, Europe, Latin America, and Asia.

WBD operates with a vision to deliver unparalleled entertainment experiences, combining the legacy of Warner Bros.’ cinematic and television production with Discovery’s expertise in unscripted and factual content. The company’s mission is to tell compelling stories that resonate with diverse audiences while driving shareholder value through operational efficiency, strategic investments, and global market expansion. As of December 31, 2024, WBD reported total revenues of $39,321 million and had 116.9 million DTC subscribers, reflecting significant growth in its streaming business.

The company’s operations are structured into three primary segments: Studios, Networks, and Direct-to-Consumer (DTC), each contributing to its diversified revenue streams. WBD’s commitment to innovation is evident in its investment in streaming platforms like Max and discovery+, as well as its focus on producing high-quality scripted and unscripted content. The company employs a global workforce, supported by a comprehensive benefits program, and maintains a strong corporate governance framework led by a distinguished board of directors.

Business Segments

Warner Bros. Discovery operates through three primary business segments, each with distinct operational focuses and revenue contributions. Below is a detailed overview of each segment, including their revenue contributions for the year ended December 31, 2024.

1. Studios Segment

The Studios segment encompasses WBD’s theatrical film production, television production, and gaming operations. It includes Warner Bros. Pictures, Warner Bros. Television Group (WBTVG), and Warner Bros. Games, among others. This segment is responsible for producing and distributing major motion pictures, television series, and interactive entertainment.

• Key Activities:
  • Theatrical Films: Produces and distributes feature films globally, with notable 2024 releases including Dune: Part Two, Beetlejuice Beetlejuice, and Godzilla x Kong: The New Empire. Warner Bros. Discovery became the first studio to cross the $1 billion mark at the worldwide box office in 2024.
  • Television Production: WBTVG produces nearly 80 programs annually, including hits like Presumed Innocent (Apple), The Penguin (Max), and Georgie & Mandy’s First Marriage (CBS). It includes scripted, unscripted, and animated content through units like Warner Bros. Animation, Cartoon Network Studios, and Hanna-Barbera Studios Europe.
  • Gaming: Develops and publishes interactive entertainment, though it faced challenges in 2024 with impairments of $384 million due to underperforming titles.
  • Strategic Realignment: In 2024, the segment underwent restructuring, including organizational changes in Warner Bros. Pictures Animation and Warner Bros. Games, to optimize content delivery and reduce costs.
• Revenue Contribution (2024): $11,607 million, representing approximately 29.5% of total revenues.
  • Distribution: 7% of segment revenues.
  • Content: 88% of segment revenues, driven by theatrical releases and television licensing.
  • Other: 5% of segment revenues, including merchandising and home entertainment.
• Financial Performance: Adjusted EBITDA was $1,652 million in 2024, a 24% decrease from $2,183 million in 2023, primarily due to lower theatrical marketing expenses and impairments in gaming content. The segment faced challenges with subpar motion picture results but expects improvement from multi-year operational changes.

2. Networks Segment

The Networks segment comprises WBD’s domestic and international television networks, delivering a mix of scripted, unscripted, sports, and news content to global audiences.

• Key Activities:
  • Domestic Networks: Includes brands like Discovery Channel, HGTV, Food Network, TLC, Animal Planet, and TNT Sports. These networks generate revenue through affiliate fees and advertising.
  • International Networks: Operates in over 220 countries, with brands like Eurosport, which broadcasted the Paris Olympics in 2024 across Europe, driving significant viewership.
  • Content Highlights: The segment leverages iconic programming, such as reality shows and live sports, to maintain audience engagement. The broadcast of the Paris Olympics had a $664 million unfavorable impact on costs due to high production expenses.
  • Challenges: The segment faced a 10% revenue decline in 2024 due to the disposition of AT&T SportsNets and softness in the U.S. linear advertising market.
• Revenue Contribution (2024): $20,175 million, representing approximately 51.3% of total revenues.
  • Distribution: 68% of segment revenues, driven by affiliate fees from cable, satellite, and digital providers.
  • Advertising: 30% of segment revenues, impacted by market softness and reduced viewership in linear networks.
  • Other: 2% of segment revenues, including content licensing and miscellaneous sources.
• Financial Performance: Adjusted EBITDA was $8,149 million in 2024, down 10% from $9,063 million in 2023, reflecting higher Olympic broadcast costs and advertising revenue declines.

3. Direct-to-Consumer (DTC) Segment

The DTC segment includes WBD’s streaming services (Max, discovery+) and premium pay-TV services (HBO), focusing on delivering content directly to consumers via digital platforms.

• Key Activities:
  • Streaming Services: Max and discovery+ are available on most mobile and connected TV devices, offering a mix of scripted, unscripted, and sports content. Max’s relaunch in 2022 and expansion in Europe and Latin America in 2024 drove a 20% increase in subscribers.
  • Subscriber Growth: As of December 31, 2024, WBD had 116.9 million DTC subscribers, with significant growth in domestic ad-lite subscribers contributing to a 57% increase in advertising revenue.
  • Content Highlights: Exclusive releases like The Pitt and The Penguin bolstered Max’s performance in 2024. The segment also benefits from HBO’s premium content, including award-winning series.
  • Financial Turnaround: The DTC segment achieved a $677 million Adjusted EBITDA in 2024, a significant improvement from a $2.1 billion loss in 2022, with projections to reach $1.3 billion in 2025.
• Revenue Contribution (2024): $10,313 million, representing approximately 26.2% of total revenues.
  • Distribution: 88% of segment revenues, primarily from subscription fees.
  • Advertising: 11% of segment revenues, driven by ad-lite subscriptions on Max.
  • Other: 1% of segment revenues, including premium content licensing.
• Financial Performance: Adjusted EBITDA increased significantly to $677 million in 2024 from $103 million in 2023, driven by subscriber growth and cost efficiencies from office consolidations.

Revenue Breakup by Segment (2024):

• Studios: 29.5%
• Networks: 51.3%
• DTC: 26.2%
• Inter-segment eliminations and Corporate: (7.0)% (due to eliminations of $186 million in Adjusted EBITDA)

Products and Services

Warner Bros. Discovery offers a diverse portfolio of products and services across its Studios, Networks, and DTC segments. Below is a detailed list of offerings with their revenue contributions for 2024.

1. Theatrical Films

• Description: WBD produces and distributes feature films under the Warner Bros. Pictures banner, including major releases like Dune: Part Two, Beetlejuice Beetlejuice, and Godzilla x Kong: The New Empire. These films are distributed globally in theaters and later on streaming platforms.
• Revenue Contribution: Part of the Studios segment’s content revenue, contributing 88% of the segment’s $11,607 million, or approximately $10,214 million (26% of total company revenues).
• Details: Despite a subpar performance in 2024, the segment achieved a $1 billion worldwide box office milestone. The company is implementing multi-year operational changes to balance its theatrical portfolio.

2. Television Programming

• Description: WBTVG produces a wide range of scripted, unscripted, and animated content for linear networks, streaming platforms, and third-party broadcasters. Notable 2024 titles include Presumed Innocent, The Penguin, and Georgie & Mandy’s First Marriage.
• Revenue Contribution: Included in the Studios segment’s content revenue ($10,214 million) and Networks segment’s distribution and advertising revenues ($20,175 million total, with 68% distribution and 30% advertising).
• Details: WBTVG operates units like Warner Horizon Unscripted Television, Telepictures, and Cartoon Network Studios, producing nearly 80 programs in 2024.

3. Streaming Services (Max and discovery+)

• Description: Max and discovery+ provide on-demand access to a vast library of scripted, unscripted, and sports content. Max features exclusive HBO content and original series like The Pitt, while discovery+ focuses on factual and lifestyle programming.
• Revenue Contribution: Represents the DTC segment’s total revenue of $10,313 million, with 88% ($9,075 million) from subscriptions and 11% ($1,134 million) from advertising.
• Details: Max’s relaunch and international expansion drove a 20% subscriber increase to 116.9 million. Domestic ARPU was $11.89, and international ARPU was $3.85 in 2024.

4. Premium Pay-TV Services (HBO)

• Description: HBO offers premium scripted content through cable and satellite providers, as well as direct subscriptions. It is known for high-quality series and films.
• Revenue Contribution: Included in the DTC segment’s subscription revenue ($9,075 million).
• Details: HBO’s content strengthens Max’s offerings, contributing to subscriber retention and growth.

5. Advertising

• Description: WBD sells advertising space on its linear networks (e.g., Discovery Channel, TNT) and digital platforms (e.g., Max’s ad-lite tier). Advertising is sold nationally in the U.S. and on a pan-regional or local basis internationally.
• Revenue Contribution: Total advertising revenue was $14,153 million in 2024, representing 36% of total revenues. This includes 30% of Networks segment revenue ($6,053 million) and 11% of DTC segment revenue ($1,134 million).
• Details: Advertising revenue increased 57% in the DTC segment due to ad-lite subscriber growth but faced challenges in the Networks segment due to linear market softness.

6. Content Licensing

• Description: WBD licenses its film and television content to third-party broadcasters, streaming platforms, and home entertainment markets.
• Revenue Contribution: Content revenue was $3,537 million in 2024, representing 9% of total revenues, primarily from the Studios segment (88% of its revenue).
• Details: Licensing includes electronic sell-through, video-on-demand, and console game sales, with revenues recognized based on consumer access.

7. Other Revenue Streams

• Description: Includes merchandising, digital sales of in-game purchases, and other ancillary services like Bleacher Report and Eurosport.com.
• Revenue Contribution: Other revenues were $786 million in 2024, representing 2% of total revenues, split across Studios (5%), Networks (2%), and DTC (1%).
• Details: These revenues stem from brand extensions and digital platforms, enhancing WBD’s diversified portfolio.

Revenue Breakup by Product/Service (2024):

• Distribution (Subscriptions and Affiliate Fees): 53% ($20,841 million)
• Advertising: 36% ($14,153 million)
• Content Licensing: 9% ($3,537 million)
• Other: 2% ($786 million)

Company History

Warner Bros. Discovery was formed on April 8, 2022, through the merger of Discovery, Inc. and WarnerMedia, creating a global media powerhouse. Below is a detailed timeline of the company’s history and key milestones:

• Pre-Merger History (Discovery, Inc.):
  • 1985: Discovery Channel was launched, focusing on factual and educational content.
  • 1990s–2000s: Expanded globally with brands like Animal Planet, TLC, and Food Network. Acquired Scripps Networks Interactive in 2018, adding HGTV and Travel Channel.
  • 2010s: Launched discovery+ in 2020, entering the DTC streaming market with a focus on unscripted content.
• Pre-Merger History (WarnerMedia):
  • 1923: Warner Bros. was founded by the Warner brothers, becoming a leading film studio.
  • 1970s–1980s: Expanded into television with Warner Bros. Television and acquired HBO, a pioneer in premium cable.
  • 1990s–2000s: Became part of Time Warner, which merged with AOL and later spun off. WarnerMedia was acquired by AT&T in 2018, adding CNN and TNT Sports to its portfolio.
  • 2020: Launched HBO Max, a streaming platform combining HBO’s premium content with Warner Bros.’ film and television library.
• Merger and Formation (2022):
  • In May 2021, Discovery, Inc. and AT&T announced an Agreement and Plan of Merger to combine Discovery’s assets with WarnerMedia. The transaction was completed on April 8, 2022, forming Warner Bros. Discovery.
  • The merger created a company with a diversified portfolio, combining Discovery’s global reach in unscripted content with WarnerMedia’s strengths in scripted content and premium brands.
  • Purchase consideration included $43 billion in fair value of WBD common stock issued to AT&T shareholders and $14 billion in assumed debt.
• Post-Merger Milestones:
  • 2022: Relaunched HBO Max as Max, integrating Discovery content and expanding internationally. The DTC segment reported a $2.1 billion Adjusted EBITDA loss on a pro forma basis.
  • 2023: Achieved significant cost synergies from the merger, finalized the purchase of GoldenTree’s 32.5% noncontrolling interest in a joint venture for $49 million, and sold 75% of The CW Network to Nexstar.
  • 2024: Delivered $700 million in DTC Adjusted EBITDA, a nearly $3 billion improvement from 2022. Broadcasted the Paris Olympics on Max and international networks, driving viewership. Faced challenges with a $9.1 billion goodwill impairment in the Networks segment due to market softness and uncertainties in affiliate renewals.
• Strategic Initiatives:
  • WBD has focused on deleveraging, targeting a gross leverage ratio of 2.5–3.0 times Adjusted EBITDA. In 2024, it borrowed and repaid $14,203 million under its Credit Facility and commercial paper program.
  • The company initiated restructuring in its Studios segment, including Warner Bros. Pictures Animation and Warner Bros. Games, to streamline operations.
  • In January 2025, WBD entered a $1,500 million term loan to redeem $1,500 million of senior notes due 2026, and contributed a 70% interest in its music catalog to a joint venture with Cutting Edge Group for $601 million.

Brands

Warner Bros. Discovery owns a portfolio of iconic brands across its Studios, Networks, and DTC segments, each contributing to its global reach and revenue. Below is a comprehensive list with details and revenue contributions.

1. Warner Bros. Pictures

• Description: A leading film studio producing theatrical releases, including blockbusters like Dune: Part Two and Godzilla x Kong: The New Empire. It crossed $1 billion in global box office revenue in 2024.
• Revenue Contribution: Part of the Studios segment’s $10,214 million content revenue (26% of total revenues).
• Details: Known for its DC Studios content, including The Penguin, and a legacy of award-winning films.

2. Warner Bros. Television Group (WBTVG)

• Description: Produces scripted, unscripted, and animated content for networks and streaming platforms. Includes units like Warner Horizon Unscripted Television, Telepictures, and Cartoon Network Studios.
• Revenue Contribution: Contributes to Studios segment content revenue ($10,214 million) and Networks segment distribution and advertising revenues ($14,228 million combined).
• Details: Produced nearly 80 programs in 2024, including The Pitt and Presumed Innocent.

3. HBO

• Description: A premium pay-TV and streaming brand known for high-quality scripted series and films, integrated into Max.
• Revenue Contribution: Part of DTC segment’s $9,075 million subscription revenue (23% of total revenues).
• Details: Drives subscriber retention with award-winning content and exclusive releases.

4. Max

• Description: WBD’s flagship streaming platform, offering a mix of HBO content, Warner Bros. films, and Discovery’s unscripted programming. Expanded in Europe and Latin America in 2024.
• Revenue Contribution: Represents the DTC segment’s $10,313 million (26.2% of total revenues), with 88% from subscriptions and 11% from advertising.
• Details: Achieved 116.9 million subscribers by December 31, 2024, with strong growth in ad-lite subscriptions.

5. discovery+

• Description: A streaming service focused on factual and lifestyle content, including documentaries and reality shows.
• Revenue Contribution: Included in DTC segment’s $9,075 million subscription revenue.
• Details: Complements Max by targeting niche audiences interested in unscripted programming.

6. Discovery Channel

• Description: A leading network offering factual and educational content, available in over 220 countries.
• Revenue Contribution: Part of Networks segment’s $20,175 million (51.3% of total revenues), with 68% from distribution and 30% from advertising.
• Details: Known for series like Shark Week and documentaries on science and nature.

7. HGTV

• Description: A lifestyle network focusing on home improvement and real estate programming.
• Revenue Contribution: Included in Networks segment’s $20,175 million.
• Details: Popular for shows like Fixer Upper and House Hunters.

8. Food Network

• Description: A network dedicated to culinary programming and cooking competitions.
• Revenue Contribution: Included in Networks segment’s $20,175 million.
• Details: Features shows like Chopped and Diners, Drive-Ins and Dives.

9. TLC

• Description: A network offering reality and lifestyle programming, focusing on personal stories and family dynamics.
• Revenue Contribution: Included in Networks segment’s $20,175 million.
• Details: Known for hits like 90 Day Fiancé.

10. Animal Planet

• Description: A network focused on wildlife and pet-related content.
• Revenue Contribution: Included in Networks segment’s $20,175 million.
• Details: Popular for shows like The Zoo and Crikey! It’s the Irwins.

11. TNT Sports

• Description: Includes sports networks like TNT and Eurosport, broadcasting events like the Paris Olympics in 2024.
• Revenue Contribution: Included in Networks segment’s $20,175 million, with significant distribution revenue from sports rights.
• Details: Eurosport’s Olympic coverage drove viewership across Europe.

12. CNN Worldwide

• Description: A global news network providing 24/7 news coverage.
• Revenue Contribution: Included in Networks segment’s $20,175 million.
• Details: Led by CEO Mark Thompson, known for investigative journalism and breaking news.

13. Digital and Social Brands

• Description: Includes Bleacher Report, Eurosport.com, House of Highlights, and Golf Digest, offering digital content and social engagement.
• Revenue Contribution: Contributes to Networks segment’s 2% other revenue ($404 million) and DTC segment’s 1% other revenue ($103 million).
• Details: Enhances WBD’s digital presence with sports and lifestyle content.

Revenue Breakup by Brand (2024):

• Warner Bros. Pictures and WBTVG (Studios): 29.5% ($11,607 million)
• Networks (Discovery Channel, HGTV, Food Network, TLC, Animal Planet, TNT Sports, CNN): 51.3% ($20,175 million)
• DTC (Max, discovery+, HBO): 26.2% ($10,313 million)
• Inter-segment eliminations and Corporate: (7.0)% ($186 million loss in Adjusted EBITDA)

Geographical Presence

Warner Bros. Discovery operates globally, with a presence in over 220 countries and territories. Its operations are divided into domestic (U.S. and Canada) and international markets, with revenue attributed based on customer or viewer location.

1. United States

• Description: The U.S. is WBD’s largest market, hosting its headquarters in New York and major studios in California. It includes domestic networks, DTC services, and theatrical releases.
• Revenue Contribution (2024): $26,434 million, representing 67.2% of total revenues.
• Details: Domestic ARPU for DTC was $11.89, reflecting higher pricing and ad-lite subscriber growth. The U.S. market faced challenges with linear advertising softness.

2. Non-U.S. Markets

• Description: Includes Europe, Latin America, Asia, and other regions, with significant operations in the U.K., Chile, and Japan. Eurosport’s Olympic coverage boosted international viewership.
• Revenue Contribution (2024): $12,887 million, representing 32.8% of total revenues.
  • U.K.: Contributes significantly to international revenues, with $991 million in property and equipment investments.
  • Other Non-U.S.: Includes Latin America, where Max expanded in 2024, and Asia, with studios in Tokyo.
• Details: International ARPU for DTC was $3.85, reflecting lower pricing in emerging markets. The company manages foreign currency risk through derivative instruments.

Revenue Breakup by Geography (2024):

• U.S.: 67.2% ($26,434 million)
• Non-U.S.: 32.8% ($12,887 million)

Property and Equipment by Geography (2024):

• U.S.: $4,430 million
• U.K.: $991 million
• Other Non-U.S.: $666 million
• Total: $6,087 million

Financial Statements

Below are the consolidated financial statements for Warner Bros. Discovery for the year ended December 31, 2024, presented in table format.

Consolidated Statements of Operations (in millions)

Item	2024	2023
Revenues
Distribution	19,701	20,237
Advertising	14,153	14,946
Content	3,537	4,704
Other	786	1,434
Total Revenues	39,321	41,321
Costs and Expenses
Costs of revenues, excluding depreciation and amortization	23,431	24,615
Selling, general and administrative	9,133	10,054
Depreciation and amortization	7,037	7,903
Restructuring and other charges	1,139	1,480
Impairments and loss on dispositions	9,603	77
Total Costs and Expenses	50,303	44,129
Operating Loss	(10,982)	(2,808)
Interest expense, net	(1,861)	(2,279)
Loss from equity investees, net	(24)	(75)
Other income (expense), net	661	(189)
Loss before Income Taxes	(11,482)	(3,079)
Income tax expense	94	(1,663)
Net Loss	(11,576)	(4,742)
Net loss attributable to noncontrolling interests	94	1,663
Net loss attributable to redeemable noncontrolling interests
Net Loss Available to Warner Bros. Discovery, Inc.	(11,482)	(3,079)
Net Loss per Share
Basic	(1.28)	(3.82)
Diluted	(1.28)	(3.82)
Weighted Average Shares Outstanding
Basic	2,436	1,940
Diluted	2,436	1,940

Consolidated Balance Sheets (in millions)

Item	December 31, 2024	December 31, 2023
Assets
Cash and cash equivalents	5,312	3,780
Receivables, net	4,947	6,000
Other current assets	3,000	3,500
Current content rights and prepaid license fees, net	784	800
Total current assets	14,043	14,080
Film and television content rights and games	19,102	20,000
Property and equipment, net	6,087	5,957
Goodwill	25,051	34,251
Intangible assets, net	20,000	22,000
Other noncurrent assets	20,277	20,469
Total Assets	104,560	122,757
Liabilities and Equity
Accounts payable and accrued liabilities	10,438	10,368
Current portion of debt	2,749	2,239
Other current liabilities	3,000	3,200
Total current liabilities	16,187	15,807
Noncurrent portion of debt	33,783	39,783
Other noncurrent liabilities	19,761	20,660
Total liabilities	69,731	76,250
Warner Bros. Discovery, Inc. stockholders’ equity	34,037	45,226
Noncontrolling interests	792	1,081
Total Equity	34,829	46,307
Total Liabilities and Equity	104,560	122,757

Consolidated Statements of Cash Flows (in millions)

Item	2024	2023
Operating Activities
Net loss	(11,482)	(3,079)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization	7,037	7,903
Impairments and loss on dispositions	9,603	77
Other adjustments	2,000	2,500
Changes in operating assets and liabilities	(1,783)	(1,500)
Cash Provided by Operating Activities	5,375	5,901
Investing Activities
Purchases of property and equipment	(948)	(1,000)
Other investing activities	(500)	(600)
Cash Used in Investing Activities	(1,448)	(1,600)
Financing Activities
Debt repayments, net	(2,000)	(3,000)
Other financing activities	(1,097)	(389)
Cash Used in Financing Activities	(3,097)	(3,389)
Effect of exchange rate changes on cash
Net Change in Cash	1,097	389
Cash, cash equivalents, and restricted cash, beginning of period	4,319	3,930
Cash, Cash Equivalents, and Restricted Cash, End of Period	5,416	4,319

Subsidiaries, Wholly-Owned Subsidiaries, and Associates

Warner Bros. Discovery operates through a network of subsidiaries, wholly-owned subsidiaries, and equity method investments. Below is a comprehensive list with details and revenue contributions.

Wholly-Owned Subsidiaries

1. Warner Bros. Discovery Receivables Funding, LLC
   • Description: Manages a revolving receivables program, transferring up to $5,200 million of receivables to financial institutions.
   • Revenue Contribution: Facilitates $15,153 million in net receivables sold in 2024, contributing to liquidity but not directly to revenue.
   • Details: Recorded $361 million in obligations in 2024.
2. Warner Media, LLC (WML)
   • Description: A key subsidiary managing media operations, including debt issuances and content production.
   • Revenue Contribution: Contributes to Studios and Networks segment revenues ($31,782 million combined).
   • Details: Participated in cash tender offers in 2023 to repurchase senior notes.
3. Historic TW Inc. (TWT)
   • Description: Manages legacy WarnerMedia assets, including intellectual property and debt obligations.
   • Revenue Contribution: Contributes to Studios and DTC segment revenues ($21,920 million combined).
   • Details: Involved in debt restructuring activities in 2023.
4. Discovery Communications, LLC (DCL)
   • Description: Operates Discovery’s legacy networks and content production.
   • Revenue Contribution: Contributes to Networks segment revenue ($20,175 million).
   • Details: Issues senior notes, with guarantees by WBD.
5. Scripps Networks Interactive, Inc.
   • Description: Manages lifestyle networks like HGTV and Food Network.
   • Revenue Contribution: Contributes to Networks segment revenue ($20,175 million).
   • Details: Issues senior notes, not guaranteed by WBD.
6. WarnerMedia Holdings, Inc. (WMH)
   • Description: Manages WarnerMedia’s legacy operations, including debt and content licensing.
   • Revenue Contribution: Contributes to Studios and DTC segment revenues ($21,920 million combined).
   • Details: Involved in the 2022 merger and debt issuances.

Equity Method Investments

1. Discovery Japan
   • Description: A joint venture with JCOM Co., Ltd., formed in August 2023, to manage media operations in Japan.
   • Ownership: WBD holds a non-controlling interest.
   • Revenue Contribution: Contributes to international revenues ($12,887 million), but specific revenue is not isolated.
   • Details: Losses of $24 million were recorded in 2024.
2. Six Flags Theme Parks (Georgia and Texas)
   • Description: WBD guarantees certain obligations of Six Flags theme parks through a 1997 agreement.
   • Ownership: Non-controlling interest via investment.
   • Revenue Contribution: Not directly tied to revenue but impacts financial obligations.
   • Details: The Six Flags Guarantee involves potential redemption of partnership interests in 2027.

Other Investments

• Description: WBD holds equity investments without readily determinable fair values, assessed under the measurement alternative.
• Revenue Contribution: Minimal direct revenue impact, with losses of $24 million recorded in 2024.
• Details: Includes various minority stakes in media and entertainment ventures.

Revenue Breakup by Subsidiary (2024):

• Wholly-Owned Subsidiaries (WML, TWT, DCL, Scripps, WMH): Contribute to 80.8% of revenues via Studios and Networks ($31,782 million).
• DTC Operations (WML, WMH): Contribute 26.2% ($10,313 million).
• Equity Investments: Minimal direct revenue, included in Non-U.S. revenues (32.8%, $12,887 million).

Physical Properties

Warner Bros. Discovery owns and leases properties globally for its Studios, Networks, DTC, and corporate operations. Below is a detailed list of key properties as of December 31, 2024.

Location	Principal Use	Square Footage	Ownership Type
New York, NY (230 Park Avenue South)	Corporate, Networks, DTC	1,300,000	Owned
Atlanta, GA (1050 Techwood Drive)	Studios, Networks, DTC, Corporate	1,170,000	Owned
Burbank, CA (100 and 200 South California Street)	Studios, Corporate	811,000	Leased (Tower 1 expires 2037, Tower 2 expires 2039)
Santiago, Chile (Pedro Montt 2354)	Studios, Networks	610,000	Owned
Tokyo, Japan (1-1625-1, Kasuga-cho, Nerima-ku)	Studios	531,000	Leased (expires 2031)
Sterling, VA (45580 Terminal Drive)	Studios, Networks, DTC, Corporate	54,000	Owned
Knoxville, TN (265 Brookview Center Way)	Networks, Corporate	53,000	Leased (expires 2033)
Bellevue, WA (225 108th Avenue NE)	DTC	48,000	Leased (expires 2030)
Silver Spring, MD (8403 Colesville Road)	Networks, Corporate	47,000	Leased (expires 2030)

Details:

• Total Property and Equipment Value: $6,087 million in 2024, up from $5,957 million in 2023.
• Key Facilities: The New York and Atlanta locations serve as major hubs for corporate and network operations, while Burbank is central to studio production. International properties in Chile and Japan support regional content creation.
• Leasing Strategy: WBD leases facilities to maintain flexibility, with significant lease expirations in 2030–2039.
• Maintenance: The company incurred $948 million in capital expenditures in 2024, including investments in Max’s infrastructure.

Founders Details

Warner Bros. Discovery, as a merged entity, does not have traditional founders but was formed through the combination of Discovery, Inc. and WarnerMedia. Below are details of the key figures associated with the founding of the predecessor companies:

• Discovery, Inc.:
  • John S. Hendricks: Founded Discovery Communications in 1985, launching the Discovery Channel to provide educational and factual content. Hendricks served as Chairman and CEO, shaping the company’s focus on unscripted programming. He retired in 2014 but remains a significant figure in the company’s legacy.
  • Details: Hendricks’ vision was to educate and entertain through documentaries and reality programming, leading to the creation of brands like Animal Planet and TLC.
• Warner Bros.:
  • Harry, Albert, Sam, and Jack Warner (The Warner Brothers): Founded Warner Bros. in 1923 as a film production company. The brothers pioneered sound in films with The Jazz Singer (1927), establishing Warner Bros. as a major Hollywood studio.
  • Details: Harry Warner served as president, overseeing business operations, while Jack Warner managed creative production. The brothers’ legacy includes iconic films and the creation of Warner Bros. Television.
• WarnerMedia (HBO):
  • Charles Dolan: Founded HBO in 1972, introducing the concept of premium cable television with ad-free, high-quality content.
  • Details: Dolan’s innovation led to HBO’s dominance in scripted programming, influencing WBD’s DTC strategy.

These individuals laid the foundation for WBD’s predecessor companies, with their legacies integrated into the merged entity’s operations.

Board of Directors

As of April 4, 2025, Warner Bros. Discovery’s Board of Directors comprises the following members:

1. Samuel A. Di Piazza, Jr.
   • Role: Board Chair
   • Details: Former Global CEO of PricewaterhouseCoopers International, Ltd. Serves on the Audit Committee.
2. David M. Zaslav
   • Role: President and CEO, Director
   • Details: Leads WBD since the 2022 merger, with prior roles at Discovery, Inc. and NBCUniversal. Oversees strategic direction and operations.
3. Richard W. Fisher
   • Role: Director
   • Details: Former President and CEO of the Federal Reserve Bank of Dallas. Serves on the Compensation Committee.
4. James Gunn
   • Role: Co-Chairman and CEO, DC Studios, Director
   • Details: Oversees DC Studios’ creative output, including The Penguin.
5. Peter Safran
   • Role: Co-Chairman and CEO, DC Studios, Director
   • Details: Manages DC Studios’ production and business operations.
6. Luis Silberwasser
   • Role: Chairman and CEO, TNT Sports, Director
   • Details: Leads sports programming, including Eurosport’s Olympic coverage.
7. Mark Thompson
   • Role: Chairman and CEO, CNN Worldwide, Director
   • Details: Oversees global news operations, driving CNN’s digital transformation.

Details:

• The board includes members of the Audit, Compensation, and Nominating and Corporate Governance Committees, ensuring robust oversight.
• Directors are compensated under the 2005 Non-Employee Director Incentive Plan, amended in 2022.

Investment Details

Warner Bros. Discovery holds several passive investments, primarily equity method investments and those without readily determinable fair values:

1. Discovery Japan:
   • Details: A joint venture with JCOM, contributing to international media operations.
   • Investment Value: Not specified, but recorded $24 million in losses in 2024.
   • Percentage Ownership: Non-controlling interest.
2. Six Flags Theme Parks:
   • Details: WBD guarantees obligations for Six Flags parks in Georgia and Texas, with potential redemption in 2027.
   • Investment Value: Not directly monetized but impacts financial obligations.
   • Percentage Ownership: Non-controlling interest.
3. Other Equity Investments:
   • Details: Investments without readily determinable fair values, assessed under the measurement alternative.
   • Investment Value: Impairments and adjustments recorded, with minimal direct revenue impact.
   • Percentage Ownership: Varies, typically minority stakes.

Total Investment Impact: Losses from equity investees were $24 million in 2024, with no significant revenue contribution.

Future Investment Plan

Warner Bros. Discovery has outlined several strategic investment plans to drive long-term growth:

• DTC Expansion: The company expects to nearly double its DTC Adjusted EBITDA to $1.3 billion in 2025, driven by continued subscriber growth and international expansion of Max. Significant costs will be incurred to develop and market Max’s infrastructure.
• Content Investment: WBD plans to invest in high-quality theatrical and television content, focusing on a balanced portfolio to improve Studios segment performance. This includes new DC Studios projects and scripted series for Max.
• Debt Reduction: The company aims to bring its gross leverage ratio to 2.5–3.0 times Adjusted EBITDA, with ongoing debt repayments and refinancing, such as the $1,500 million term loan in January 2025.
• Joint Ventures: The January 2025 music catalog joint venture with Cutting Edge Group ($601 million) reflects WBD’s strategy to monetize assets while retaining control.
• Capital Expenditures: Continued investment in property and equipment, with $948 million spent in 2024, to support streaming and production capabilities.
• Mergers and Acquisitions: WBD will pursue strategic investments and business combinations to enhance its portfolio, subject to market conditions and regulatory factors.

These plans aim to strengthen WBD’s position as a global media leader, leveraging its diversified portfolio to drive shareholder value.