MergerMay 6, 2026, 05:23 PM
Warner Bros. Discovery Reports $2.9B Net Loss, PSKY Merger Progresses
AI Summary
Warner Bros. Discovery reported a net loss of $2.916 billion, or $1.17 per share, for the three months ended March 31, 2026, significantly wider than the $453 million loss in the prior year, primarily due to a $2.8 billion Netflix Termination Fee. Total revenues slightly decreased to $8.893 billion. The company terminated its Netflix merger agreement and entered into a new merger agreement with Paramount Skydance Corporation (PSKY), under which WBD stockholders will receive $31.00 per share in cash.
Key Highlights
- Terminated Netflix Merger Agreement, incurring a $2.8 billion termination fee.
- Entered into PSKY Merger Agreement; WBD stockholders to receive $31.00 cash per share.
- Reported a net loss of $2.916 billion, or $1.17 per share, for Q1 2026.
- Total revenues for Q1 2026 were $8.893 billion, down from $8.979 billion YoY.
- Cash used in operating activities was $208 million, compared to $553 million provided YoY.
- Streaming segment revenue was $2.887 billion in Q1 2026.
- Studios segment revenue was $3.125 billion in Q1 2026.
- Global Linear Networks segment revenue was $4.377 billion in Q1 2026.
Price Impact
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