Warner Bros. Discovery Q1 Net Loss $2.9 Billion

Warner Bros. Discovery reported a net loss of $2.9 billion for the first quarter on Wednesday, driven largely by merger-related costs including a $2.8 billion termination fee to Netflix and $1.3 billion in restructuring expenses, as the company advances toward its $111 billion acquisition by Paramount and Skydance.

The New York-based media giant generated $8.9 billion in revenue during the January-to-March period, a 3 percent decline from the prior year that fell short of Wall Street expectations. The results reflect ongoing shifts in the industry, with streaming and studios showing gains amid declines in linear television. Warner Bros. Discovery ended the quarter with $3.3 billion in cash and $33.4 billion in gross debt.

Streaming services, led by HBO Max, posted revenue of $2.9 billion, up 9 percent, fueled by a 20 percent rise in advertising and international launches in Germany, Italy, Britain, and Ireland. The platform surpassed 140 million global subscribers, exceeding company guidance, with adjusted EBITDA climbing 17 percent to $438 million. Executives noted strong growth in ad-supported tiers following a prior price increase.

The studios division also performed well,...