Warner Bros. Discovery reported a $2.9 billion net loss for the first quarter, driven largely by acquisition-related accounting costs, restructuring expenses, and a $2.8 billion termination fee tied to a failed deal involving Netflix.

Revenue fell slightly year over year, though adjusted earnings increased, and the company continues to carry significant debt.

Streaming was a bright spot, with strong subscriber growth and rising revenue from HBO Max, helping the company surpass 140 million global users and move toward its 150 million target.

In contrast, its traditional TV networks, including CNN and Discovery, saw declining revenue and advertising due in part to lost sports rights, CNBC has reported.

Film studio revenue rose sharply, helping offset weakness in legacy television businesses.