Warner Bros. Discovery reported its Q2 ’26 earnings this week, revealing continued healthy growth in its Streaming segment, but significant declines in revenue and earnings in both its Studios and Global Linear Networks segments. 

As we discuss, the new report further illustrates how WBD’s value continues to slide compared to February, 2026 when the Paramount deal was announced. As such, lenders and equity contributors to the deal should be re-evaluating their participation and terms with a fresh set of eyes. 

Further, in light of a trial that won’t even start until March, 2027, Larry Ellison, who has by far the biggest financial exposure on the deal, would benefit from reconsidering whether this deal, particularly on its current terms, is still worth pursuing. We reiterate that we see no better than a 25%-30% chance the deal will actually close. 

We then turn our attention to Disney, which struck a partnership with TikTok this week and appears to be considering launching some type of free streaming service. We discuss the merits of both of these moves. 

Listen on to learn more (33 minutes, 9 seconds)

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