Warner Bros. Discovery reported fourth-quarter earnings that exceeded analyst expectations, with adjusted core EBITDA of $2.22 billion, down 19% year-over-year but still above Bloomberg consensus estimates of $2.11 billion. The Hollywood conglomerate's revenue fell 5.7% to $9.46 billion, yet remained ahead of projections.

The company's studios segment emerged as the clear standout, posting a 52% year-over-year increase in core profit to $2.55 billion when stripping out currency effects. Warner Bros. highlighted momentum in the division, citing strong box office performance from the recent release of "Wuthering Heights." The streaming segment surpassed its subscriber target, reaching nearly 132 million total subscribers against a goal of 130 million.

These financial results come amid an intensifying takeover battle, with Paramount having recently sweetened its offer to $31 per share and raising its termination fee to $7 billion. The board has indicated that Paramount's enhanced proposal could reasonably be expected to lead to a superior deal compared to the existing agreement with Netflix, which offered $27.75 per share. Warner Bros. declined to address the matter during its post-earnings analyst call.