Warner Bros. Discovery Inc. reported a steep drop in sales as it copes with the loss of National Basketball Association rights and a weak film slate, sending shares lower and prompting concern among investors about the company’s near‑term outlook. The media conglomerate, which owns HBO, TNT, Cartoon Network and CNN, disclosed that revenue fell 11% to $8.7 billion, below Wall Street’s expectations for $9.2 billion.

Executives attributed the shortfall primarily to the disappearance of NBA broadcasting fees, which previously contributed a substantial portion of the company’s sports‑related income, and to a theatrical lineup that failed to match the box‑office strength of the prior year's releases. In addition to the sports rights setback, the studio’s home‑entertainment and streaming segments faced softer demand, while advertising sales across its cable networks showed only modest growth, further pressuring the top line. Analysts warned that unless Warner Bros.

Discovery can secure new sports partnerships or revitalize its film slate, the revenue gap may persist, urging the firm to accelerate cost‑saving initiatives and explore alternative content strategies to regain market confidence.