NASDAQ Shariah screener · October 2026
Is Warner Bros. Discovery, Inc. (WBD) Halal?
Warner Bros. Discovery, Inc. · NASDAQ: WBD · Consumer Discretionary
The short answer
No — Warner Bros. Discovery (WBD) does not pass this Shariah stock screen. Its media-and-entertainment business (Warner Bros. studios, HBO Max, Discovery channels, CNN) has no prohibited lines, and its non-compliant income is tiny — FY2025 interest income of about $206M is ~0.55% of $37.3B revenue, under the 5% ceiling. But total interest-bearing debt of $32.02B at June 30, 2026 is about 41.2% of its ~$77.7B market capitalization (2.51B shares at $30.95, Oct 2, 2026) — above the ~33% debt ceiling, so the financial-structure gate fails. Separately, Paramount Skydance is expected to acquire all WBD shares for about $31 in cash around October 6, 2026, after which the shares would stop trading. Zoya rates WBD not Shariah-compliant (Sept 2026); no Musaffa or ShariaPortfolio public rating was found for WBD — reported as absent, not invented.
Gate 1 — Business activity: PASS
Warner Bros. Discovery, Inc. (NASDAQ: WBD) is a global media and entertainment company formed by the April 2022 WarnerMedia-Discovery merger, headquartered in New York. It operates the Warner Bros. film and television studios (Warner Bros. Pictures, New Line Cinema, DC, Warner Bros. Television Group, animation, games), the HBO / HBO Max and discovery+ streaming services, and global linear networks — Discovery Channel, CNN, HGTV, Food Network, TLC, TNT, TBS, Cartoon Network, Adult Swim, Eurosport and others. Revenue streams are distribution (cable/streaming subscriptions), advertising, content licensing, and other. In December 2024 it reorganized into Streaming & Studios and Global Linear Networks divisions; the June 9, 2025 plan to separate into Warner Bros. and Discovery Global by mid-2026 was superseded by the February 27, 2026 agreement for Paramount Skydance (NASDAQ: PSKY) to acquire the whole company. None of the disclosed lines — film/TV production, streaming, cable networks, news, gaming — are prohibited lines (no alcohol, gambling, pork, tobacco, cannabis, conventional banking/insurance, or adult-entertainment business; Adult Swim is a late-night TV programming block). Gate 1 passes. Facts only.
Gate 2 — Debt and cash: FAIL
At June 30, 2026 the Q2 2026 10-Q (filed August 6, 2026) reports a current portion of debt of $1,493M and a noncurrent portion of $30,530M — total interest-bearing debt of about $32.02B. The company itself reported $29.7B of net debt and 3.4x net leverage at quarter-end (after refinancing a $15B bridge loan into term loans during the quarter). Against a market cap of about $77.7B (roughly 2.51B Series A shares outstanding at $30.95, October 2, 2026), debt ÷ market cap is about 41.2% — above the ~33% ceiling. Cash and equivalents of $3,369M are about 4.3% of market cap, within the ~33% guideline, but do not offset the debt ratio. Gate 2 fails. Facts only.
Gate 3 — Non-compliant income: PASS
Interest income was about $206M for fiscal 2025 (H1 2025: $123M per the Q2 2026 10-Q Note 13 comparatives; Q3 2025: $47M; Q4 2025: $36M), against total revenue of $37,296M — about 0.55% of revenue, well under the 5% non-compliant income ceiling. For the more recent half, H1 2026 interest income was $56M against revenue of $17,610M (about 0.32%), also far under the ceiling. The interest is earned on cash balances, not from lending. Gate 3 passes. Facts only.
Key figures used
- Business: global media & entertainment — Warner Bros. film/TV studios, HBO/HBO Max + discovery+ streaming, Discovery/CNN/HGTV/TNT/TBS linear networks; June 2025 split plan superseded by Paramount acquisition
- Interest-bearing debt: $32.02B at Jun 30, 2026 ($1,493M current + $30,530M noncurrent) — debt ÷ market cap ≈ 41.2%, over the ~33% ceiling; company reports $29.7B net debt, 3.4x leverage
- Market cap: ~$77.7B (~2.51B Series A shares × $30.95, Oct 2, 2026); cash $3,369M ≈ 4.3% of market cap, within the ~33% guideline
- Interest income: ~$206M (FY2025) vs revenue $37,296M — ≈0.55% of revenue, under the 5% non-compliant income ceiling (earned on cash, not lending)
- Q2 2026: revenue $8.72B (-11% YoY on NBA loss, weak theatrical); net income $149M; streaming revenue +10% to $3.08B
- Pending Paramount Skydance (PSKY) all-cash acquisition at ~$31/share expected to close ~Oct 6, 2026; $2.8B Netflix termination fee accrued in H1 2026 after the competing deal fell through
- Zoya rates WBD not Shariah-compliant (Sept 2026); no Musaffa or ShariaPortfolio public rating found for WBD — reported as absent, not invented
Frequently asked questions
What does Warner Bros. Discovery do?
Warner Bros. Discovery (NASDAQ: WBD) is a global media and entertainment company formed by the April 2022 WarnerMedia-Discovery merger. It runs the Warner Bros. film and television studios (Warner Bros. Pictures, New Line Cinema, DC, Warner Bros. Television Group, animation, games), the HBO and HBO Max streaming services plus discovery+, and global linear networks including Discovery Channel, CNN, HGTV, Food Network, TLC, TNT, TBS, Cartoon Network, Adult Swim and Eurosport. In Q2 2026 it reported revenue of $8.72B (streaming up 10%, studios and linear advertising down). A June 9, 2025 plan to split into Warner Bros. (streaming and studios) and Discovery Global (cable networks) was superseded by a February 27, 2026 agreement for Paramount Skydance to acquire the whole company; closing is expected around October 6, 2026 at $31 per share in cash, after which WBD shares would stop trading.
Why does Warner Bros. Discovery fail this Shariah stock screen?
Warner Bros. Discovery fails on the debt gate, not the business or income gates. Its business — studios, streaming, and television networks — has no prohibited lines (no alcohol, gambling, pork, tobacco, cannabis, conventional banking or insurance, and no adult-entertainment business; Adult Swim is a late-night television programming block, not an adult-entertainment line). Its non-compliant income is small: FY2025 interest income of $206M against revenue of $37.3B is about 0.55%, under the 5% ceiling. But total interest-bearing debt of $32.02B at June 30, 2026 is about 41.2% of its roughly $77.7B market capitalization — above the ~33% debt ceiling, so the financial-structure gate fails. Separately, WBD shares are expected to be acquired by Paramount Skydance for about $31 in cash around October 6, 2026, after which they would stop trading. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.
What is Warner Bros. Discovery's interest-bearing debt ratio?
At June 30, 2026, Warner Bros. Discovery's balance sheet showed a current portion of debt of $1,493M plus a noncurrent portion of $30,530M — total interest-bearing debt of about $32.02B (Q2 2026 10-Q, filed August 6, 2026). The company itself reported net debt of $29.7B and 3.4x net leverage at quarter-end. With a market capitalization of about $77.7B (roughly 2.51B Series A shares outstanding at $30.95, October 2, 2026), debt divided by market cap is about 41.2% — above the ~33% ceiling, so the debt gate fails. Cash and equivalents of $3,369M are about 4.3% of market cap, within the ~33% guideline, but that does not offset the debt ratio.
What is Warner Bros. Discovery's non-compliant income ratio?
For fiscal 2025, Warner Bros. Discovery reported interest income of about $206M (H1 2025: $123M per the Q2 2026 10-Q Note 13 comparatives; Q3 2025: $47M; Q4 2025: $36M) against total revenue of $37,296M — about 0.55% of revenue, well under the 5% non-compliant income ceiling. For the more recent half, H1 2026 interest income was $56M against revenue of $17,610M (about 0.32%), also far under the ceiling. The interest is earned on cash balances, not from lending. On this gate the screen passes; the failure is on the debt gate, not income.
Do Zoya, Musaffa, or ShariaPortfolio cover Warner Bros. Discovery?
Zoya covers Warner Bros. Discovery (zoya.finance/stocks/wbd) and, as of September 2026, rates WBD as not Shariah-compliant based on the company's latest financial reports — consistent with this page's FAIL result on the debt ratio. No public Musaffa rating page for WBD was found, and no ShariaPortfolio rating for WBD was found — honestly reported as absent, not invented. This page applies the screen directly from the company's filings: the Q2 2026 10-Q (filed August 6, 2026) and the FY2025 results press release (February 26, 2026).
Sources
- WBD Q2 2026 10-Q (filed Aug 6, 2026): revenues $8,717M (Q2) / $17,610M (H1); current debt $1,493M + noncurrent $30,530M; cash $3,369M; interest income $34M (Q2) / $56M (H1); 2,510,703,314 Series A shares outstanding
- WBD Q2 2026 results press release: $29.7B net debt, 3.4x leverage; $15B bridge loan refinanced; revenue $8.72B; separation & transaction costs ~$350M
- WBD Q4 2025 earnings press release (Feb 26, 2026): FY2025 revenue $37,296M; interest expense, net ($2,085M); Q3 2025 interest income $47M; Q4 2025 interest income $36M
- TwelveData WBD annual financials: FY2025 non-operating interest income $206M; revenue $37.3B
- Zoya — Warner Bros. Discovery (WBD) stock page: not Shariah-compliant (as of Sept 2026)
- Wikipedia — Proposed acquisition of WBD by Paramount Skydance: separation plan (Jun 9, 2025), Feb 27, 2026 agreement, 12 state AG suit, settlement approved Sept 30, 2026, closing expected Oct 6, 2026
- TM Broadcast — Paramount/WBD merger closing brought forward to Oct 6, 2026: $31/share cash + ticking amount (~$31.02)
- Finnhub — WBD quote (current price $30.95, NASDAQ)
- MarketBeat — WBD market capitalization $77.58B (Sept 29, 2026, $30.90)
Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).