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Warner Bros. Discovery CEO David Zaslav.

Olivia Michael | CNBC

The media industry is in a transitional moment — from streaming to traditional TV — and the focus needs to be on ending the writers and actors’ strikes, Warner Bros. Discovery CEO David Zaslav said on Wednesday.

“We’re a content company. We’re a storytelling company. And we need to do everything we can to get people back to work,” Zaslav said Wednesday at Goldman Sachs’ Communacopia and Technology conference. “People need to be fairly compensated.”

“We really have to focus as an industry, and we are, on trying to get this resolved in a way that’s really fair.”

The comments came a day after Warner Bros. Discovery alerted investors that it revised its full-year outlook factoring in the impact of the ongoing actors and writers strike if they were to continue through the end of this year. Initially, the company’s guidance was based on the assumption the strikes would be over in September.

The company now expects its adjusted earnings before interest, taxes, depreciation and amortization will take a hit of $300 million to $500 million, putting it in the full-year range of $10.5 billion to $11 billion.

Zaslav has been part of the discussions with the Members of the Writers Guild of America union, which has been on strike for more than 100 days, and the actors, who started their strike in July.

The work stoppage has halted production on Hollywood sets, impacting companies like Warner Bros. Discovery, which owns a TV and movie studio, as well as the biggest portfolio of pay-TV networks.

On Wednesday, Zaslav spoke about the various issues facing the industry as a whole — from the strikes to theaters still feeling the effects of the pandemic, to the tough advertising market and bulking up the streaming business.

The company has been focused on increasing its free cash flow and paying down its debt, much of which stems from the 2022 merger of Warner Bros. and Discovery. The impact of the strikes isn’t expected to affect its debt paydown and net leverage target for the year.

Warner ended the second quarter with $47.8 billion in debt. In recent months the company has done two tender offers, both vehicles for paying down its debt.

On Wednesday, Zaslav said that remains the focus of the company as it has made decisions to cut back on costs, adding there are no plans to “jeopardize” the health of the company for any one piece of content.

Warner Bros. Discovery recently started discussions with the NBA regarding the upcoming rights renewal, he said Wednesday.

Still, like its peers, Warner Bros. Discovery has been looking for ways to bulk up Max, the flagship streaming service that was relaunched earlier this year.

Zaslav said the company would have updates in coming weeks on adding sports to Max. CNBC previously reported the company is targeting the beginning of Major League Baseball playoffs to debut a sports tier on Max.

This month Max is adding more content from both Warner Bros. Discovery’s portfolio and other media companies.

At the beginning of September, Max added more than 200 episodes of series from AMC Networks, which will be available in a designated hub — free to Max subscribers — for the next two months.

Later this month, CNN will join the Max platform as a 24/7 live news hub featuring top anchors from the pay-TV network.

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Google to test using AI to determine users’ ages

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Google to test using AI to determine users’ ages

Google chief executive Sundar Pichai speaks during the tech titan’s annual I/O developers conference on May 14, 2024, in Mountain View, California. 

Glenn Chapman | Afp | Getty Images

Google will start using artificial intelligence to determine whether users are age appropriate for its products, the company said Wednesday.

Google announced the new technique for determining users’ ages as part of a blog focused on “New digital protections for kids, teens and parents.” The automation will be used across Google products, including YouTube, a spokesperson confirmed. Google has billions of users across its properties and users designated as under the age of 18 have restrictions to some Google services.

“This year we’ll begin testing a machine learning-based age estimation model in the U.S.,” wrote Jenn Fitzpatrick, SVP of Google’s “Core” Technology team, in the blog post. The Core unit is responsible for building the technical foundation behind the company’s flagship products and for protecting users’ online safety. 

“This model helps us estimate whether a user is over or under 18 so that we can apply protections to help provide more age-appropriate experiences,” Fitzpatrick wrote.

The latest AI move also comes as lawmakers pressure online platforms to create more provisions around child safety. The company said it will bring its AI-based age estimations to more countries over time. Meta rolled out similar features that uses AI to determine that someone may be lying about their age in September.

Google, and others within the tech industry, have been ramping their reliance on AI for various tasks and products. Using AI for age-related content represents the latest AI front for Google.

The new initiative by Google’s “Core” team comes despite the company reorganization that unit last year, laying off hundreds of employees and moving some roles to India and Mexico, CNBC reported at the time. 

WATCH: Google kills diversity hiring targets, reviewing other DEI programs

Google kills diversity hiring targets, reviewing other DEI programs

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AppLovin soars almost 30% on earnings, guidance beat

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AppLovin soars almost 30% on earnings, guidance beat

Adam Foroughi, CEO of AppLovin.

CNBC

AppLovin shares soared almost 30% in extended trading on Wednesday after the company reported earnings and revenue that sailed past analysts’ estimates and issued better-than-expected guidance.

Here’s how the company performed compared with analysts’ expectations, according to LSEG:

  • Earnings per share: $1.73 vs. $1.24 expected
  • Revenue: $1.37 billion vs. $1.26 billion expected

Net income in the quarter more than tripled to $599.2 million, or $1.73 per share, from $172.3 million, or 51 cents per share, a year earlier, the company said in a statement.

Revenue jumped 43% from $953.3 million a year earlier.

AppLovin was the best-performing U.S. tech stock last year, soaring more than 700%, driven by the company’s artificial intelligence-powered advertising system. In 2023, AppLovin released the updated 2.0 version of its ad search engine called AXON, which helps put more targeted ads on the gaming apps the company owns and is also used by studios that license the technology.

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AppLovin’s business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, the apps business has become much less important, and now the company says it is selling it off.

“Today we’re announcing we’ve signed an exclusive term sheet to sell all of our apps business,” CEO Adam Foroughi said on the earnings call.

Later in the call, the company said it has signed a term sheet for the sale for a “total estimated consideration” of $900 million. That includes $500 million in cash, “with the remainder representing a minority equity stake in the combined private company.”

Advertising revenue climbed 73% in the quarter to almost $1 billion. The ad business was previously categorized as Software Platform. The company said it made the change because advertising accounts for “substantially all of the revenue in this segment.”

AppLovin said it expects first-quarter revenue of between $1.36 billion and 1.39 billion, exceeding the $1.32 billion average analyst estimate, according to LSEG. More than $1 billion of that will come from its advertising segment, as the company said it is “still in the early stages” of bolstering its AI models.

“The roadmap ahead is filled with opportunities for iteration,” the company said in its shareholder letter. “As we execute, we believe we can continue to drive value creation for our shareholders.”

WATCH: AppLovin shares jump

Applovin shares jump more than 15% on earnings beat

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Cisco pops on increased full-year revenue forecast

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Cisco pops on increased full-year revenue forecast

Cisco CEO Chuck Robbins speaking on CNBC’s “Squawk Box” outside the World Economic Forum in Davos, Switzerland, on Jan. 22, 2025.

Gerry Miller | CNBC

Cisco shares climbed about 6% in extended trading on Wednesday after the networking hardware maker reported fiscal second-quarter results and guidance that topped Wall Street’s expectations.

Here’s how the company did against LSEG consensus:

  • Earnings per share: 94 cents adjusted vs. 91 cents expected
  • Revenue: $13.99 billion vs. $13.87 billion expected

Revenue increased 9% in the quarter, which ended on Jan. 25, from $12.79 billion a year earlier, according to a statement. The growth follows four quarters of revenue declines. The company said it had orders for artificial intelligence infrastructure that exceeded $350 million in the quarter.

Cisco now sees adjusted earnings of $3.68 to $3.74 for the 2025 fiscal year, with $56 billion to $56.5 billion in revenue. Analysts polled by LSEG had been looking for $3.66 in adjusted earnings per share and $55.99 billion in revenue. In November, the forecast was $3.60 to $3.66 in earnings per share and $55.3 billion to $56.3 billion in revenue.

Net income in the latest period slid almost 8% to $2.43 billion, or 61 cents per share, from $2.63 billion, or 65 cents per share, a year ago.

Revenue from the networking division totaled $6.85 billion, down 3% but more than the $6.67 billion consensus among analysts surveyed by StreetAccount.

The security unit contributed $2.11 billion. That is a 117% increase from a year earlier, thanks to the addition of Splunk. Analysts expected $2.01 billion, according to StreetAccount.

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Splunk, which Cisco bought in March 2024 for $27 billion, was accretive to adjusted earnings per share sooner than planned, Scott Herren, Cisco’s finance chief, was quoted as saying in the statement. Cisco’s total revenue would have been down 1% year over year if not for Splunk’s contribution, according to the statement.

Many technology companies have been trying to predict the effects from President Donald Trump’s newly established Department of Government Efficiency. But three-quarters of Cisco’s U.S. federal business comes from the Defense Department, while most of the headcount cutting thus far has occurred in other agencies, Cisco CEO Chuck Robbins said on a conference call with analysts.

“Everything seems to be progressing as we expected,” he said.

Customers do not appear to be pulling up orders before tariffs go into effect, Herren said on the conference call.

As of Thursday’s close, Cisco shares were up 5% so far in 2025, while the S&P 500 index had gained about 3%.

WATCH: Cisco CEO Chuck Robbins on impact of tariffs, AI innovation and future of DEI

Cisco CEO Chuck Robbins on impact of tariffs, AI innovation and future of DEI

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