Overview
- Warner Bros. Discovery, in results released Wednesday, posted a $2.92 billion quarterly loss driven by a $2.8 billion termination fee and $1.3 billion in acquisition-related and restructuring charges.
- The termination fee was paid to Netflix by Paramount Skydance under the pending takeover, yet it remains on WBD’s books until the deal closes because the amount could be refundable under specific conditions.
- Streaming revenue rose 9% to about $2.89 billion as more viewers chose the ad-supported tier and HBO Max launched in the U.K., Ireland, Germany and Italy, pushing the base past 140 million with guidance to exceed 150 million this year.
- Studios rebounded as revenue climbed to $3.13 billion and profit reached $775 million, helped by stronger theatrical releases and higher TV licensing tied to HBO Max’s global rollout.
- The proposed $110 billion sale to Paramount Skydance has shareholder approval and targets a third-quarter close, with U.K. and U.S. reviews pending and protections that include a quarterly ticking fee after Sept. 30 or a $7 billion breakup fee if regulators block it.