We think more work is needed to turn WBD around. We cut our target $0.50 to $8.50 on a forward TEV/EBITDA of 6.1x our ’24 EBITDA estimate of $9.9B, below peers. We lower our ’24 LPS to -$0.75 (-$0.50) and keep our ’25 EPS at $0.15; our respective revenue forecasts are $41.1B (prior $41.6B) and $42.2B ($42.5B). WBD posted a LPS of -$0.40, a wider loss than consensus. WBD will partner with Disney (DIS 105 ***) on a shared Direct to Consumer (DTC) platform for MAX, Disney+, and Hulu to drive revenue sharing, reduce customer churn, and remove middlemen like Roku (ROKU 59 ***) or Apple TV. DTC realized $86M adj. EBITDA and flat revenue Y/Y with advertising +70%, flat distribution, and content -46%. MAX’s domestic unit had 52.7M subs (+700K Q/Q) and ARPU of $11.72 vs. $11.65, while international had 46.9M subs (+1.3M) with ARPU of only $3.75 vs. $3.88. Weak advertising revenue (-11% Y/Y) in the Network unit led to -8% revenue Y/Y and -8% adj. EBITDA comps. Studios posted weak -12% Y/Y revenue and -70% EBITDA.