Warner Bros. Discovery Q1 2026: Paramount deal costs $2.9B
Warner Bros. Discovery reported that its streaming subscribers surpassed 140 million in the first quarter of 2026. However, the company recorded a massive net loss of $2.9 billion, largely driven by a $2.8 billion termination fee paid to Netflix related to the Paramount Skydance merger. The fee was incurred after the Paramount deal collapsed, triggering contractual obligations. The subscriber growth was overshadowed by the financial hit, highlighting the volatile nature of media consolidation. The results were disclosed in the company's Q1 2026 earnings report.
Key facts
- Warner Bros. Discovery's streaming subscribers topped 140 million in Q1 2026.
- The company reported a net loss of $2.9 billion for the quarter.
- A $2.8 billion termination fee to Netflix was tied to the Paramount Skydance merger.
- The Paramount deal cost Warner Bros. Discovery $2.9 billion.
- The termination fee was triggered after the Paramount Skydance merger fell through.
- The subscriber growth was overshadowed by the financial loss.
- The results were part of the Q1 2026 earnings report.
Entities
Institutions
- Warner Bros. Discovery
- Netflix
- Paramount
- Skydance
Sources
- Quartz —