David Zaslav actually likes HBO Max. (You may go forward and overlook about that entire “Max” period.)
On Wednesday, Zaslav referred to as HBO Max “most likely” Warner Bros.’ “most vital asset.” Discovery. It is streaming’s distinctive potential to host whole libraries of TV and flicks that, in a single’s thoughts, locations it above linear belongings like HBO, CNN and Turner Channels. The identical goes for WBD’s theatrical distribution enterprise, which additionally finally serves as a feeder for HBO Max.
So I suppose that is what David Ellison is (principally) paying $111 billion for.
It might very fairly be mentioned that Warner Bros. studios. are literally a bit extra beneficial – the corporate’s movie enterprise is definitely its most iconic asset. (The studio lot is fairly cool, too.) However it’s truly WBD’s linear community enterprise that also technically brings in essentially the most cash, then the studios, and SO streaming. However instances are altering, and this cable cowboy, the protégé of actual cable cowboy John Malone, acknowledges him.
Zaslav additionally mentioned throughout Warner Bros. Q1 2026 earnings convention name. Discovery that HBO Max was the “pillar” of its “ambition” to separate the corporate in two, which might have served Netflix very properly however was pointless when Paramount Skydance got here calling with a superior provide. The streamer is “the piece of the enterprise that you simply suppose might be an enormous profit to Paramount when our deal closes,” Zaslav mentioned. HBO Max has many extra subscribers than Paramount+.
Warner Bros. Discovery reported its first quarter 2026 outcomes on Wednesday afternoon. Nicely, truly, it reported its losses. WBD posted a $2.9 billion loss within the March quarter, however that might (principally) be attributed to the $2.8 billion it owed Netflix for dumping them in favor of Paramount’s prettier providing. (Paramount Skydance finally covers this price.)
There was additionally $1.3 billion in different bills, together with restructuring prices (learn: layoffs and severance) forward of the Paramount buyout’s deliberate closing within the third quarter of 2026.
Paramount Skydance reported its personal first-quarter outcomes on Monday. Ellison mentioned the corporate is “making nice progress” towards its acquisition of Warner Bros. Discovery.