Hanoi University of Science and Technology
MID-TERM PROJECT
Warner Bros. Discovery (WBD)
Phan Ngoc Anh
Supervisor by Dr Nguyen Dang Tue
Signature
Course Finnacial Management, EM4522E
School: Economics
HA NOI, 6/2025
, Warner Bros. Discovery (WBD) is a giant media and entertainment
Figure 1: Business Model
company. Its strength lies in its rich portfolio with iconic franchises like
Harry Potter, Game of Thrones, and Friends. While the company holds a
unique strength in intellectual property and storytelling, it faces
significant challenges related to its heavy debt burden, leadership
instability, lack of strategic clarity, and intensifying market competition.
As a result, WBD’s stock has seen a substantial decline from 2023 to the
present. (Figure 2).
Source: The Retail Deep Dive
Figure 2: Stock Change (2017-2025)
BUSINESS MODEL
Core Operations: WBD categorizes its revenues into 3 segment,
Networks, Studios, and DTC with well-know chanel shown in Figure 1. It
only started breaking down revenues this way after its merger in 2022.
1. Studios, production and release of feature films for initial exhibition
in theaters, production and initial licensing of television programs to
networks/DTC services as well as third parties, to home
entertainment market (physical and digital), related consumer
products and themed experience licensing, and interactive gaming.
This segment is declining, but not as exponentially as people think. Its
streaming business is growing faster than its linear business.
Source: Yahoo, Author’s analysis
Moreover, it owns the best cable networks around that have some of
the highest viewership retention rates. Thus, the market’s fear of
Figure 3: Segmentation Result
WBD is unfounded.
2. Networks: managing top cable brands. WBD’s Networks segment
consists of revenues earned from shows it producers for its
traditional cable TV networks. As seen in Figure 3, Networks is
currently WBD’s largest revenue contributor.
3. Direct-to-Consumer (DTC): streaming services. The only segment
experienced rising compare to 2023.
Revenue Stream:
1. Distibution: Account for more than a half, generating money from
licensing to cable, satellite, telco, and DTC platforms (Figure 5)
2. Advertising : Profit from ads on linear TV and digital platforms
Source: WBD, Author’s analysis 3. Content: Selling & monetizing content itself, not the channel or
platform that carries it.
Figure 4: Historical M&A deal 4. Other: studio tours, consumer products, production services
Target Market: Global company with 75% revenue generated in the
United States: $7.9 billion and the remaining from international: $2.7
billion (Q1.2024).
Merge & Aqquisition and Strategic Move:
Originally formed in 1990 through the merger of Time Inc. and Warner
Communications, the company sought to solidify its position as a
traditional media powerhouse. In 2001, it entered an ambitious but
ultimately unsuccessful merger with AOL, aiming to combine legacy
media with emerging digital platforms during the dot-com boom. By
2008, this strategy was reversed, as the company separated from AOL to
refocus on core entertainment assets.
In 2018, telecom giant AT&T acquired Time Warner, aiming for vertical
integration between content creation and distribution. However,
mounting debt and operational misalignment led AT&T to spin off
WarnerMedia in 2021. WarnerMedia subsequently merged with
Discovery, Inc. in 2022—forming Warner Bros. Discovery (WBD). This
strategic reset brought together a deep portfolio of premium content
Source: Bloomberg
MID-TERM PROJECT
Warner Bros. Discovery (WBD)
Phan Ngoc Anh
Supervisor by Dr Nguyen Dang Tue
Signature
Course Finnacial Management, EM4522E
School: Economics
HA NOI, 6/2025
, Warner Bros. Discovery (WBD) is a giant media and entertainment
Figure 1: Business Model
company. Its strength lies in its rich portfolio with iconic franchises like
Harry Potter, Game of Thrones, and Friends. While the company holds a
unique strength in intellectual property and storytelling, it faces
significant challenges related to its heavy debt burden, leadership
instability, lack of strategic clarity, and intensifying market competition.
As a result, WBD’s stock has seen a substantial decline from 2023 to the
present. (Figure 2).
Source: The Retail Deep Dive
Figure 2: Stock Change (2017-2025)
BUSINESS MODEL
Core Operations: WBD categorizes its revenues into 3 segment,
Networks, Studios, and DTC with well-know chanel shown in Figure 1. It
only started breaking down revenues this way after its merger in 2022.
1. Studios, production and release of feature films for initial exhibition
in theaters, production and initial licensing of television programs to
networks/DTC services as well as third parties, to home
entertainment market (physical and digital), related consumer
products and themed experience licensing, and interactive gaming.
This segment is declining, but not as exponentially as people think. Its
streaming business is growing faster than its linear business.
Source: Yahoo, Author’s analysis
Moreover, it owns the best cable networks around that have some of
the highest viewership retention rates. Thus, the market’s fear of
Figure 3: Segmentation Result
WBD is unfounded.
2. Networks: managing top cable brands. WBD’s Networks segment
consists of revenues earned from shows it producers for its
traditional cable TV networks. As seen in Figure 3, Networks is
currently WBD’s largest revenue contributor.
3. Direct-to-Consumer (DTC): streaming services. The only segment
experienced rising compare to 2023.
Revenue Stream:
1. Distibution: Account for more than a half, generating money from
licensing to cable, satellite, telco, and DTC platforms (Figure 5)
2. Advertising : Profit from ads on linear TV and digital platforms
Source: WBD, Author’s analysis 3. Content: Selling & monetizing content itself, not the channel or
platform that carries it.
Figure 4: Historical M&A deal 4. Other: studio tours, consumer products, production services
Target Market: Global company with 75% revenue generated in the
United States: $7.9 billion and the remaining from international: $2.7
billion (Q1.2024).
Merge & Aqquisition and Strategic Move:
Originally formed in 1990 through the merger of Time Inc. and Warner
Communications, the company sought to solidify its position as a
traditional media powerhouse. In 2001, it entered an ambitious but
ultimately unsuccessful merger with AOL, aiming to combine legacy
media with emerging digital platforms during the dot-com boom. By
2008, this strategy was reversed, as the company separated from AOL to
refocus on core entertainment assets.
In 2018, telecom giant AT&T acquired Time Warner, aiming for vertical
integration between content creation and distribution. However,
mounting debt and operational misalignment led AT&T to spin off
WarnerMedia in 2021. WarnerMedia subsequently merged with
Discovery, Inc. in 2022—forming Warner Bros. Discovery (WBD). This
strategic reset brought together a deep portfolio of premium content
Source: Bloomberg
