Overview
- Warner Bros. Discovery reported a first‑quarter net loss of about $2.9 billion on roughly $8.9 billion in revenue, driven mainly by a $2.8 billion breakup fee tied to a failed sale to Netflix and about $1.3 billion in merger‑related charges.
- Under the acquisition agreement, Paramount paid the $2.8 billion to Netflix on Warner’s behalf, and Warner recorded the amount as an obligation that could be reimbursed to Paramount under defined termination scenarios.
- Warner shareholders approved Paramount’s $31‑per‑share offer that values the company at about $110–111 billion, and the companies are guiding to a closing in the third quarter of 2026 pending regulatory reviews.
- Regulatory scrutiny continues as thousands of Hollywood creators have opposed the deal, warning it could narrow choices for workers and viewers by concentrating control of major franchises and outlets.
- Netflix withdrew from the bidding earlier this year, clearing the path for Paramount’s offer, while Warner’s total costs rose 26% to $11.36 billion as it booked fees and restructuring tied to the planned combination.