WBD Faces Big Q1 Hit from One-Time M&A Charges, Including $2.8B Termination Fee
Warner Bros. Discovery posted a $2.9 billion first‑quarter loss largely due to one‑time M&A charges, including a $2.8 billion termination fee Paramount paid Netflix to swap merger-board seats; executives say this should be a temporary accounting blip. Revenue slipped 3% to $8.9 billion, but HBO Max revenue rose about 7% and DTC ad revenue climbed 19%, with adjusted EBITDA flat at $2.2 billion. Net debt stood at $33.4 billion and free cash flow turned negative due to separation and transaction costs, as the company reiterates a potential merger close in Q3 and prepares for an earnings call.