Due in part to the merger with Paramount, WBD loses $2.9 billion

Warner Bros Discovery reported a loss of approximately $2.9 billion in its first fiscal quarter, largely due to its merger agreement with Paramount.

Of that loss, $1.3 billion corresponds to restructuring costs and amortization related to the merger, and $2.8 billion to the penalty paid to Netflix for its failed acquisition attempt, according to a statement.

Paramount paid the penalty to Netflix as part of its agreement to acquire WBD. But the cost is recorded as a liability on WBD’s books until the transaction is finalized.

At the end of April, WBD shareholders approved its sale to Paramount for $111 billion. An offer that ended the long-running bidding war for control with streaming giant Netflix, which withdrew in February.

Television networks, such as CNN and Discovery Channel, accounted for the majority of income at $4.38 billion (up 8%), followed by film studios at $3.13 billion (up 35%) and streaming services like HBO Max at $2.89 billion (up 9%).

Despite objections from hundreds of Hollywood creators who think the merger could hurt the industry. Paramount said on Monday that it is making «great progress» in the acquisition of WBD, which it intends to finalize in the third quarter given regulatory approval.

That day, the acquiring business announced its first-quarter fiscal results, showing revenue of $7.35 billion. Up 2%, and a profit of $168 million, 10% more than the same period in fiscal year 2025.