Warner Bros. Discovery reported a $2.9 billion net loss for the first quarter of 2026, as merger-related charges and a massive termination fee linked to its abandoned Netflix deal weighed heavily on earnings.
As per media reports, the major factor behind the loss was a $2.8 billion breakup fee tied to the company’s previously proposed agreement with Netflix. The charge emerged after Paramount Skydance’s acquisition offer for Warner Bros. Discovery was ultimately deemed superior, prompting Netflix to walk away from the bidding process.
The company also recorded approximately $1.3 billion in restructuring, acquisition-related amortization and integration costs during the quarter. Despite the steep loss, Warner Bros. Discovery reported quarterly revenue of $8.89 billion, broadly in line with analyst expectations.
Its streaming business remained a bright spot, with streaming revenue rising 9% year-on-year to $2.89 billion, helped by HBO Max’s international expansion and subscriber growth. However, advertising revenue declined 7%, partly due to the absence of NBA programming and continued pressure on linear television audiences.
