Warner Bros. Discovery (WBD) reported a net loss of $2.9 billion for the first quarter of 2026, primarily driven by one-time charges related to the termination of its proposed merger with Paramount Global. The company disclosed that the loss includes a $2.8 billion termination fee paid by Paramount after the deal collapsed.
According to WBD's earnings release on May 7, 2026, the termination fee was recorded as a non-recurring charge. Excluding this and other one-time items, the company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.1 billion, slightly above analyst expectations.
CEO David Zaslav stated that the company remains focused on its streaming strategy and debt reduction. WBD's total debt stood at $39.4 billion as of March 31, 2026, down from $41.2 billion at the end of 2025.
The merger between WBD and Paramount was called off in February 2026 after regulatory hurdles and shareholder opposition. Paramount agreed to pay the termination fee as part of the merger agreement.
