Warner Bros. Discovery books $2.9 billion net loss tied to Paramount deal, restructuring costs
The loss reflects a $2.8 billion termination fee and $1.3 billion in acquisition-related charges, while revenue fell 3% to $8.9 billion, the company said.
- On Wednesday, Warner Bros. Discovery reported a $2.9 billion net loss for the first quarter of 2026, including a $2.8 billion termination fee paid to Netflix after their merger agreement collapsed.
- Paramount Skydance agreed to acquire the company for about $111 billion, with the transaction expected to close later this year; Paramount reimbursed WBD for the fee, though WBD must carry the liability until the deal finalizes.
- Total revenue eased 3% to $8.9 billion, while streaming services led by HBO Max grew 9% to $2.9 billion; linear television networks saw revenue fall 9% to $4.4 billion due to the loss of NBA broadcasting rights.
- Streaming services surpassed guidance with more than 140 million subscribers by quarter-end, yet more than 4,000 entertainment industry workers signed an open letter warning the Paramount merger would consolidate the media landscape and reduce competition.
- WBD ended the March quarter carrying just over $30 billion in net debt for Paramount to eventually inherit. Paramount CEO David Ellison stated earlier this week the acquisition remains on track for a third-quarter close.
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The media group Warner Bros Discovery (WBD) reported a loss of about $2.9 billion in its first fiscal quarter, largely derived from the merger agreement with Paramount. Of those losses, $1.3 billion is related to restructuring costs and write-offs related to the merger, and $2.8 billion to the fine paid to Netflix for the failure in his attempt to purchase, according to a statement. Paramount paid the fine to Netflix as part of his agreement to …
Warner Bros. Discovery Reported a Net Loss of $2.9 Billion in Q1
Warner Bros. Discovery reported its Q1 2026 earnings this afternoon. The report showed a net loss of $2.916 billion for the first three months of the year. That seems like a massive number, but it includes $1.3 billion in “pre-tax acquisition-related amortization of intangibles, content fair value step-up and restructuring expenses” related to the Paramount […] The post Warner Bros. Discovery Reported a Net Loss of $2.9 Billion in Q1 appeared fi…
The company reported an adjusted loss of $1.17 per share for the quarter ended March 31.
WBD Sees $2.9 Billion Q1 Loss On M&A Charges Including Termination Fee Paramount Paid Netflix
Warner Bros. Discovery posted a $2.9 billion Q1 loss that will likely be a one-time accounting blip, it hopes. It includes the termination fee Netflix paid Paramount.
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