The news: Warner Bros. Discovery (WBD) posted rocky Q3 results, with US ad revenues falling 16% YoY to $1.4 billion, largely attributed to linear TV audience declines. Overall revenues fell to $9 billion, down 6% YoY. Theatrical revenues remained a bright spot, surging 74% YoY, driven by box office successes like DC’s “Superman” and horror hit “Weapons.”

WBD’s options: Flailing ad revenues and a struggling business have left WBD eyeing growth opportunities, with CEO David Zaslav saying the company has an “active process underway” to turn its business around.

• One option WBD has explored would see it split into two companies in 2026—one focused on streaming and studios and the other on global cable networks. Ad sales could potentially span both entities, while the split would ideally address linear TV’s decline.
• But WBD has recently stated that it’s considering a sale as buyers like Paramount Skydance and Netflix express interest—despite rejecting an initial offer from the former. WBD is betting that a sale would help the company stay afloat in the streaming-first era while addressing its massive debt load.

What a sale would mean for WBD’s ad business: Selling to a buyer like Paramount Skydance or Netflix would help WBD bounce back from its advertising struggles. A Paramount Skydance deal would widen WBD’s linear and digital video access, offering a consolidated platform where marketers would receive a more diverse content mix while addressing streaming’s fragmentation issue. In turn, WBD could become a more attractive investment option for advertisers.