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Warner Bros. Discovery reports a loss as sale process heats up

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Warner Bros. Discovery reports a loss as sale process heats up

Warner Bros. Discovery reported a $148 million loss in the third quarter, hitting a sour note as the company began fielding interest from would-be buyers as Hollywood braces for a transforming deal.

Earnings for the entertainment company that includes HBO, CNN and the Warner Bros. film and TV studios fell short of analyst expectations. A year ago, the company reported profit of $135 million for the third quarter.

Revenue of $9.05 billion declined 6% from the year-ago period. The company swung to a loss of 6 cents a share, compared to last year’s earnings of 5 cents a share.

Still, Chief Executive David Zaslav spent much of Thursday’s call with analysts touting his company’s underlying strengths — while avoided giving details about the company’s sale.

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“It’s fair to say that we have an active process underway,” Zaslav said.

Warner Bros. Discovery on Thursday reiterated it is forging ahead with previously announced plans to split into two separate entities by next spring. However, the Warner board acknowledged last month that it was also entertaining offers for the entire company — or its parts — after David Ellison’s Paramount expressed its interest with formal bids.

Paramount has made three offers, including a $58 billion in cash and stock for all of Warner Bros. Discovery. That bid would pay Warner stockholders $23.50 a share.

The Ellison family appears determined to win one of Hollywood’s most storied entertainment companies to pair with Paramount, which the Ellisons and RedBird Capital Partners acquired in August.

But Warner Bros. Discovery’s board, including Zaslav, voted unanimously to reject Paramount’s offers and instead opened the auction to other bidders, which is expected to lead to the firm changing hands for the third time in a decade.

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Board members are betting the company, which has shown flickers of a turnaround, is worth more than the offers on the table. Despite its rocky third-quarter results, Warner’s stock held its ground in early morning trading at around $22.60 a share.

“Overall we are very bullish,” Zaslav said of the company’s business prospects.

“When you look at our films like ‘Superman,’ ‘Weapons’ and ‘One Battle After Another,’ the global reach of HBO Max and the diversity of our network’s offerings, we’ve managed to bring the best, most treasured traditions of Warner Bros. forward into a new era of entertainment and [a] new media landscape,” he said.

But the company’s results underscored its business challenges.

The studio witnessed a major decline in advertising revenue in the third quarter, reporting $1.41 billion, down 16% from the previous year, which executives attributed to declines in the audience for its domestic linear channels, including CNN, TNT and TLC.

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Distribution revenue also took a hit, as the company reported sales of $4.7 billion, a decrease of 4% compared to last year.

Studio revenue increased 24% to $3.3 billion, powered by the success of DC Studios’ “Superman,” horror flick “Weapons” and the latest installment of “The Conjuring.” But even those box office wins couldn’t totally offset shortfalls in other areas of its content business.

Last year, the company was able to sub-license its rights to broadcast the Olympics in Europe, which pushed content revenue to $2.72 billion. But this year, revenue was down 3% to $2.65 billion.

Burbank-based Warner Bros. has had a string of success in theaters, with nine films opening at the top spot globally at the box office. The studio recently surpassed $4 billion in worldwide box office revenue, making it the first studio to do so this year. Warner Bros. last achieved that milestone in 2019.

Zaslav would like to continue with Warner’s break-up plans, which were announced last June.

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The move would allow him to stay on to manage a smaller Hollywood-focused entity made up of the Warner Bros. studios, HBO, streaming service HBO Max and the company’s vast library, which includes Harry Potter movies and award-winning television shows such as “The Pitt.”

The company’s large portfolio of cable channels, including HGTV, Food Network and Cartoon Network, would become Discovery Global and operate independently.

Beyond Paramount, Philadelphia-based Comcast, Netflix and Amazon have expressed interest in considering buying parts of the company.

The company said its third quarter loss of $148 million was the result of a $1.3 billion expense, including restructuring costs.

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Movie Reviews

Movie Review: Ian McKellen and Michaela Coel are razor-sharp in art comedy ‘The Christophers’

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Movie Review: Ian McKellen and Michaela Coel are razor-sharp in art comedy ‘The Christophers’

“The Christophers” looks like an art heist movie at first. A couple of wannabe heirs (James Corden and Jessica Gunning) hire a restoration specialist (Michaela Coel) to finish a series of paintings by their famous father (Ian McKellen), who wants nothing to do with them or the uncompleted works that would surely command an astronomical price tag.

The offspring, whom McKellen’s Julian Sklar vividly describes as wrecks — one a train wreck, one a shipwreck — feel they deserve an inheritance they’re smart enough to know they won’t receive through any will — or talent of their own. The specialist and sometimes forger Lori (Coel) has other motives. There’s the promise of paying rent, yes, but there’s also an element of revenge. Lori and Julian have a kind of history that the movie will reveal in time. She’s also been publicly critical of his later works.

But “The Christophers” is not an “Ocean’s” movie or a “Logan Lucky,” which is to say it’s not really a heist. There’s the tease of one, right up until the end, and the promise of the con. This latest film by the great and astonishingly prolific Steven Soderbergh is not out to give the audience what they think they want from him. Instead, it’s a meditation on art, legacy, creativity and the oh-so-touchy subject of who has the right to critique. It might sound a bit dreary, but Ed Solomon’s razor-sharp script and the brilliant pairing of McKellen and Coel make this lean two-hander breeze by.

You can read however much you want into how much Soderbergh (or Solomon) may or may not relate to Julian, who is determined to burn, bury and shred the unfinished “Christophers,” a series of paintings of a former boyfriend that became his most famous. It’s a fun and prickly exercise for any creative person to reconcile with the peaks and lulls of a long career in the arts — and Julian is luckier than most. He actually got famous and relatively wealthy from his paintings.

Julian huffs that “to judge art one must possess the skills to make said art.” It’s the kind of statement that, if given in an interview, might launch a thousand think pieces. Julian is both old and a devout rebel, with a lifetime’s worth of wisdom, wit and burned bridges in his arsenal. It’s a potent combination ripe for internet virality, but at the moment his online presence is mostly relegated to something akin to Cameo messages for 149 pounds a pop (249 if he mimes a signature).

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When Lori arrives, he suddenly has an audience for his theatrical, nonstop musings: fun for McKellen, his character and the audience, but not so much for Lori, who absorbs the monologuing with steely indifference until she decides to take more control of the situation. There’s a bit of the generational disconnect that happens, but it’s somehow never cliche or predictable. The story zigs and zags with its characters as they work through the situation at hand and the larger issues both seem to be plagued by. The script throws a lot of ideas out there and, refreshingly, none of them is to be taken as dogma, especially not Julian’s comment about who has the right to judge art. Like many things he says, it’s probably just the most withering thing he could think of at the moment.

It is a funny thing, though, to critique a movie that does have so much to say about criticism, about what the person behind the keyboard might actually have the guts to say out loud to the person courageous enough to make something and put it out in the world. Perhaps it’s not actually that hard when the movie is as solid as “The Christophers,” or when the filmmaker in question is on a roll like Soderbergh with both “Presence” and “Black Bag.” His movies may have gotten smaller, but the verve remains.

This image released by Neon shows Ian McKellen in a scene from “The Christophers.” Credit: AP/Claudette Barius

“The Christophers,” a Neon release in New York and LA on Friday and nationwide on April 17, is rated R by the Motion Picture Association for “language.” Running time: 100 minutes. Three stars out of four.

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As the cable business ebbs, AMC Networks takes a new name

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As the cable business ebbs, AMC Networks takes a new name

AMC Networks, the cable home of “The Walking Dead” and adaptations of Anne Rice’s vampire novels, is getting a new name to reflect its shift to streaming and program production.

In a legal filing, the New York based company announced Wednesday it will be called AMC Global Media, effective immediately.

The company, which owns a suite of cable networks including AMC, We TV, SundanceTV, BBC America and IFC, said most of its domestic revenue now comes from streaming.

AMC has more than 10 million paid subscribers to its services including Shudder, a platform for horror fans, and ALLBLK, which caters to Black audiences, an anime service called HIDIVE and All Reality which is devoted unscripted programming.

AMC’s production studio distributes programming to TV networks and streaming outlets internationally. The company has also sold shows domestically to outside streaming services such as Netflix and HBO Max.

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“Our new name reflects the ongoing transformation of our business into a global media and studio-driven company, with streaming out front as our leading source of domestic revenue,” the company’s chief executive Kristin Dolan said in a statement.

AMC Networks has seen revenues decline as consumers forgo satellite and cable subscriptions and move to streaming for video entertainment. The decline in ratings has put pressure on adverting dollars as well.

The company’s stock closed Wednesday at $7.55. It was trading at over $60 per share in 2021.

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Movie Reviews

Psycho Killer (2026) – Review | Serial Killer Movie | Heaven of Horror

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Psycho Killer (2026) – Review | Serial Killer Movie | Heaven of Horror

Watch Psycho Killer on VOD now

Psycho Killer was directed by Gavin Polone, who has produced a lot of amazing genre movies. These include Stephen King‘s Secret Window (2004), Cold Storage, and Zombieland: Double Tap, while also having produced projects in various other genres. As a director, this is his feature film debut, and I’m sorry to say I think this is the main issue of the finished product.

I say this because the screenplay was written by Andrew Kevin Walker, who also wrote Se7en. Much of what I liked initially about Psycho Killer feels like classic Andrew Kevin Walker, so I’m hesitant to truly believe the story is bad. After all, the iconic Seven could also have been a very strange experience if not directed by David Fincher.

For the record, Seven is far from the only successful script by Andrew Kevin Walker. He also wrote Brainscan (1994), Hideaway (1995), 8MM (1999), Sleepy Hollow (1999), The Wolfman (2010), Windfall (2022), and The Killer (2023). In other words, he is very far from being a one-hit wonder.

I don’t want to recommend that you skip this movie, because the first half of Psycho Killer shows what a brilliant serial killer horror slasher this could have been. So watch it, and try to prepare yourself for an ending that does not live up to that strong opening.

Psycho Killer is out on digital from April 7, 2026.

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