Warner Bros. Discovery books $2.9 billion net loss tied to Paramount deal, restructuring costs

Warner Bros. Discovery reported a net loss of $2.9 billion in the first quarter, primarily due to a $2.8 billion termination fee owed after Netflix withdrew from a proposed acquisition deal in favor of Paramount's higher offer. The loss also included $1.3 billion in restructuring and acquisition-related expenses, though the company's adjusted earnings and streaming revenue showed growth. Paramount agreed to cover the termination fee as part of its agreement to acquire WBD, but the cost remains on WBD's books until the deal closes, which is expected in the third quarter pending regulatory approval.