Warner Bros. Discovery (WBD) risk factors, 2025 10-K

Risks Related to Our Business and Industry

1. 01Our businesses operate in highly competitive industries and if we are unable to compete effectively, our business, financial condition and results of operations could suffer
2. 02We derive substantial revenues from the sale of advertising, and a continuing decline in advertising revenues could have a material adverse effect on our business, financial condition or results of operations
3. 03Changes in consumer behavior, as well as evolving technologies and distribution models, may negatively affect our business, financial condition or results of operations
4. 04The success of our business depends on the acceptance of our content and brands by our U.S. and international viewers, which may be unpredictable and volatile
5. 05If our DTC products fail to attract and retain subscribers, our business, financial condition and results of operations may be adversely impacted
6. 06Failure to renew, renewal with less favorable terms, or termination of our content licenses and similar distribution agreements may cause a decline in our revenue
7. 07We rely on platforms owned by our competitors for digital and linear distribution of our content
8. 08We invest significant resources to acquire and maintain licenses to produce sports programming and there can be no assurance that we will continue to be successful in our efforts to obtain or maintain licenses to recurring sports events or recoup our investment when the content is distributed
9. 09Our businesses have been, and in the future may be, subject to labor disruption
10. 10We have recognized, and could continue to recognize, impairment charges related to goodwill and other intangible assets
11. 11Service disruptions or the failure of communications satellites or transmitter facilities we rely upon could adversely impact our business, financial condition and results of operations

Risks Related to Our Financial, Capital and Corporate Structure

1. 12Forecasting our financial results requires us to make judgments and estimates which may differ materially from actual results
2. 13We could be unable to obtain cash in amounts sufficient to meet our financial obligations or other commitments
3. 14Corporate restructurings, strategic transactions and acquisitions present many risks and we may not realize the financial and strategic goals that were contemplated at the time of any transaction
4. 15Certain of our businesses are conducted through joint ventures or partnerships with one or more third parties, in which we share ownership, management, and profits of the business operation to varying degrees
5. 16It may be difficult for a third party to acquire us, even if such acquisition would be beneficial to our stockholders

Risks Related to Domestic and Foreign Laws and Regulations; Other Risks Related to International Operations

1. 17Changes in domestic and foreign laws and regulations and other risks related to international operations could adversely impact our business, financial condition and results of operations
2. 18We are subject to domestic and international privacy and data protection laws, which impact our ability to collect and use personal information. Our efforts to comply with such laws, which are continually evolving, could impose costly obligations on us and generate additional regulatory and litigation risk
3. 19Environmental, social and governance laws, and regulations may adversely impact our businesses
4. 20Foreign exchange rate fluctuations may adversely affect our operating results and financial conditions
5. 21Increasing complexity of global tax policy and regulations could increase our tax liability and adversely impact our business and results of operations

Risks Related to Our Acquisition and Integration of the WarnerMedia Business

1. 22We have been engaged in legal proceedings and disputes related to the Merger and could be subject to additional legal proceedings and disputes related to the Merger, the outcomes of which are uncertain and could negatively impact our business, financial condition and results of operations

General Risks

1. 23Theft of our intellectual property, unauthorized duplication, distribution and exhibitions of our intellectual property, and other impairments of our intellectual property rights may decrease revenues and adversely affect our business, financial condition, and results of operations
2. 24We face cybersecurity and related risks, which could lead to the disclosure of confidential information, disruption of our programming services, damage to our brands and reputation, legal liabilities, and financial losses
3. 25cybersecurity attacks can persist for an extended period of time before being detected, and following detection, it may take
4. 26Our business, financial condition and results of operations may be negatively impacted by the outcome of uncertainties related to litigation
5. 27Global economic conditions and other global events may have an adverse effect on our business
6. 28The market price of our common stock has been highly volatile and may continue to be volatile due, in part, to circumstances beyond our control
7. 29Our participation in multiemployer defined benefit pension plans could subject us to liabilities that could adversely affect our business, financial condition and results of operations