Warner Bros. Misses on Earnings as Paramount Deal Nears

Warner Bros. Discovery Inc. reported first-quarter financial results that missed analysts’ expectations as the media giant moves closer to being acquired by rival Paramount Skydance Corp.

The parent of HBO, CNN, TNT and Cartoon Network reported revenue of $8.9 billion compared to Wall Street estimates of $8.91 billion. For earnings per share, the company posted a larger-than-expected loss of $1.17, compared to analysts’ estimates of a loss of 11 cents. Warner Bros. said that the net loss included the $2.8 billion termination fee Paramount paid to Netflix Inc. as part of its merger agreement, which Warner Bros. would have to refund to Paramount under certain circumstances.