Warner Bros. Discovery, Inc.

Warner Bros. Discovery, Inc. subsidiary, Discovery Global Holdings, Inc., has entered into a First Lien Credit Agreement, securing $13,000 million in USD-denominated and €1,717 million in Euro-denominated 7-year term loans. The proceeds were used to fully repay $15,000 million in outstanding loans from a prior bridge loan agreement. The new credit facility is secured by substantially all assets of the company and its subsidiaries and includes standard covenants, with no financial maintenance covenant.

Warner Bros. Discovery announced that its wholly-owned subsidiaries, Discovery Communications, LLC and Discovery Global Holdings, Inc., successfully received the required consents from noteholders to adopt proposed amendments to the indentures governing their senior notes. These amendments, effective upon execution and operative around May 29, 2026, extend the deadline for a required exchange offer for junior lien secured notes to March 4, 2027, and specify terms if the acquisition by Paramount Skydance Corporation is consummated. Paramount will fund the $2.50 per $1,000 (or €2.50 per €1,000) consent payment to eligible holders.

Warner Bros. Discovery, Inc.'s subsidiaries, Discovery Communications, LLC and Discovery Global Holdings, Inc., have commenced consent solicitations from holders of certain outstanding notes. The proposed amendments to the indentures governing these notes aim to extend the deadline for an offer of junior lien secured notes to March 4, 2027, and specify terms contingent on the proposed acquisition of WBD by Paramount Skydance Corporation. Concurrently, Paramount has launched separate tender and exchange offers for some WBD notes. Holders who provide consent will receive a cash payment of $2.50 or 2.50 per $1,000/ 1,000 principal amount, which Paramount will fund.

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.

Warner Bros. Discovery reported Q1 2026 total revenues of $8.9 billion, a 3% ex-FX decrease year-over-year, and a net loss of $(2.9) billion, significantly impacted by a $2.8 billion Netflix termination fee. Despite the revenue decline and net loss, Adjusted EBITDA increased 5% to $2.2 billion. The company saw strong growth in its Streaming and Studios segments, while the Global Linear Networks segment continued to face declines. HBO Max's global rollout is largely complete, exceeding 140 million global streaming subscribers.

Warner Bros. Discovery, Inc. (WBD) announced the renewal of Chief Financial Officer Gunnar Wiedenfels' employment agreement, effective July 11, 2026, through April 28, 2028. Under the new agreement, Mr. Wiedenfels' annual base salary will be $2,500,000, with a target annual cash bonus opportunity of 175% of his base salary. He will also be eligible for annual equity awards with a target value of $10,000,000 and will receive a one-time restricted stock units award of $2,000,000. The terms are consistent with the interim operating covenants in WBD's previously disclosed Merger Agreement with Paramount Skydance Corporation.

Warner Bros. Discovery (WBD) announced its acquisition by Paramount Skydance Corporation, with WBD stockholders receiving $31.00 per share. This follows a strategic review and a competitive bidding process, resulting in a 164% stock price increase from early 2025 to the merger agreement signing. The company also reported strong 2025 performance, with Studios Adjusted EBITDA up 54% and Streaming subscribers surpassing 130 million. The Annual Meeting is scheduled for June 9, 2026, to vote on director elections, auditor ratification, executive compensation, and a stockholder proposal.