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Warner Bros. Discovery’s impending sale has rattled Hollywood — and the company’s balance sheet as the auction’s high costs increasingly come into focus.

The New York-based media company released its first-quarter earnings Wednesday, which included a $2.9 billion loss. That amount includes $1.3 billion in restructuring expenses, including updated valuations for Warner’s declining linear cable television networks.

Contributing to the net loss was the $2.8 billion termination fee paid to Netflix in late February when the streaming giant bowed out of the bidding for Warner. The auction winner, Paramount Skydance, covered the payment to Netflix but Warner still must carry the obligation on its balance sheet in case the Paramount takeover falls apart. Should that happen, Warner would have to reimburse Paramount.

Warner also spent another $100 million to run the auction and prepare for the upcoming transaction, according to its regulatory filing.

“As we prepare for our next chapter, our focus remains on executing our key strategic priorities: scaling HBO Max globally, returning our Studios to industry leadership, and optimizing our Global Linear Networks,” Warner Bros. Discovery leaders said Wednesday in a letter to shareholders.

Warner generated $8.9 billion in revenue, a 3% decline from the same quarter one year ago, excluding the effect of foreign exchange rate fluctuations.

Its streaming services, including HBO Max, notched milestones in the quarter and 9% revenue growth to $2.9 billion. The company launched HBO Max in Germany, Italy, Britain and Ireland during the quarter.

Advertising revenue for streaming was up 20% compared to the first quarter of 2025.

The streaming unit posted a 17% increase to $438 million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).

Warner’s studios, primarily its TV business, had a strong quarter.

Studios revenue rose 31% to $3.1 billion, compared to the prior year quarter.

Television revenue soared 58% (excluding exchange rate fluctuations) due to increased program licensing fees to support the launch of HBO Max in international markets. Those launches also propelled the movie studio, which saw revenue increase 21%.

Video games revenue declined 30% because of lower library revenues.

Adjusted EBITDA for the studios grew $516 million (158%) to $775 million compared to the prior year quarter.

The company’s vast linear television networks saw revenue fall 9% to $4.4 billion compared to the prior year period.

TV distribution revenue tumbled 8% largely due to a 10% decrease in domestic linear pay TV subscribers.

The company also felt the loss of its NBA contract for its TNT channel, which NBC picked up. Advertising revenue fell 12%. “The absence of the NBA negatively impacted the year-over-year growth rate,” Warner said.

As the costs of the merger with Paramount come into clearer focus, the opposition has grown louder.

More than 4,000 artists and entertainment industry workers, including Bryan Cranston, Noah Wyle, Kristen Stewart and Jane Fonda, have signed an open letter warning about the dangers of the merger with Paramount. “This transaction would further consolidate an already concentrated media landscape, reducing competition at a moment when our industries — and the audiences we serve — can least afford it,” according to the letter.

“The result will be fewer opportunities for creators, fewer jobs across the production ecosystem, higher costs, and less choice for audiences in the United States and around the world.”

Adjusted EBITDA for the television networks fell 10% to $1.6 billion, compared to the prior year quarter.

Warner ended the quarter with $3.3 billion in cash on hand and $33.4 billion of gross debt.

Fifa is poised to change the rules around suspensions for accumulated yellow cards at this summer’s World Cup.

BBC Sport understands world football’s governing body is planning to add a second amnesty stage, wiping all yellow cards at the end of the group stage as well as after the quarter-finals.

Under current rules a team would play five matches to reach the quarter-finals, and any two bookings in those games would lead to a suspension.

The revamped World Cup, with 48 teams instead of 32, includes an extra round and it is felt the jeopardy for a ban is too high.

Without a change to the regulations, Fifa fears that many more players would be walking a suspension tightrope by playing six fixtures through to the last eight – and potentially miss a semi-final.

The topic is on the agenda for discussion when the Fifa Council meets in Vancouver, Canada on Tuesday.

Two bookings will remain the suspension threshold, but the rule change will mean there are only two small pockets of games for players to pick up a ban.

It would require cautions in two of the three group games, or in two of the last 32, last 16 and the quarter-finals, to miss a match.

The sharp rise in the cost of jet fuel, driven by escalating tensions in the US-Israel war with Iran, has forced several airlines to hike fares, cut routes and reassess their financial forecasts

Multiple airlines are cancelling flights and introducing new charges as a deepening jet fuel crisis sends shockwaves through the global aviation industry.

Prices have surged dramatically in recent weeks, climbing from roughly $85-$90 per barrel to as high as $150-$200, driven by escalating tensions in the US-Israeli war with Iran.

The sharp rise in costs has now forced carriers to hike fares, cut routes and reassess their financial forecasts. The spike has triggered warnings of major disruption, with International Energy chief Fatih Birol cautioning that Europe could have as little as six weeks of jet fuel supply remaining if the Strait of Hormuz stays closed.

There are more than 30 airlines around the world who say they have been forced to cancel flights or add charges:

AirAsia X – Cut around 10% of flights and introduced a fuel surcharge of roughly 20%.

Air France-KLM – Raising long-haul fares, plus cabin fares by 50 euros per round trip, as well as cancelling flights. KLM, the group’s Dutch arm, is set to scrap 160 European services in the coming months.

Air India – Switching to distance-based fuel surcharges, warning current pricing does not cover rising costs, reports the Independent.

Air New Zealand – Reducing flights through May and June, increasing fares and suspending its full-year earnings forecast.

Akasa Air – Introducing fuel surcharges ranging between 199 and 1,300 Indian rupees ($2 to $14) on both domestic and international routes.

Alaska Air – Increasing checked baggage fees by up to $150 on North American routes, as well as for its Hawaiian Airlines unit.

American Airlines – Raising baggage fees by $10 each for the first and second checked bags and by $150 for the third checked bag, while cutting some economy benefits.

Asiana Airlines – Cutting 22 flights between April and July due to fuel costs.

Cathay Pacific – Cancelling a small portion of flights from mid-May until the end of June and increasing fuel surcharges.

China Eastern Airlines – The airline said it would raise ⁠fuel surcharges for domestic flights from April 5, with flights of 800km and below hit with a 60 yuan ($9) surcharge and a 120 yuan surcharge for flights over 800km.

Delta Airlines – Delta said it would cut capacity by around 3.5 percentage points from its original plan and raise fees for checked bags.

Easyjet – CEO Kenton Jarvis previously said European consumers should expect higher ticket prices towards the end of summer, when existing fuel hedges come to an end.

Greater Bay Airlines – Said it would raise fuel surcharges on most routes from April 1, while keeping them unchanged on mainland China and Japan routes. Its surcharge for flights between Hong Kong ‌and the Philippines will more than double, the carrier said.

Hong Kong Airlines – The airline said it would raise fuel surcharges by up to 35% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal

Indigo – India’s biggest airline said it would introduce fuel charges on domestic and international flights from March 14.

Jetblue Airways – The US-based low-cost carrier said it was increasing fees for optional services such as checked baggage as it experiences “rising operating ⁠costs”. Baggage prices will rise by either $4 or $9, it said.

Lufthansa – Grounding 27 planes early and cutting more aircraft from its fleet.

Norse Atlantic Airways – Axed its London Gatwick to Los Angeles route because of fuel costs.

Pakistan International Airlines – Raising domestic fares by $20 and international fares by up to $100.

SAS – Will cancel 1,000 flights in April after already hiking fares.

Spring Airlines – The airline will raise domestic fuel surcharges from April 5.

Southwest Airlines – Hiking baggage fees to $45 for a first bag and $55 for a second.

SunExpress – The airline will add a temporary 10-euro fuel surcharge on Turkey-Europe routes.

TAP Air Portugal – Said fare rises would soften the blow from higher fuel prices.

Thai Airways – Increasing fares by up to 15%.

United Airlines – United Airlines is scaling back loss-making routes over the next six months. It has also been able to push up fares without seeing a major impact on bookings, chief commercial officer Andrew Nocella said, despite the sharp rise in oil and jet fuel costs.

United is also increasing first and second checked baggage fees by $10 for customers travelling within the US, Mexico, Canada and Latin America, according to Reuters.

VietJet Air – Cut flights on some routes because of fuel shortages.

Vietnam Airlines – plans to cancel 23 domestic flights a week from April. The airline reportedly requested government assistance to remove an environmental tax on jet fuel.

Virgin Atlantic – The airline is adding fuel surcharges to fares and will still struggle to return to profitability this year, its CEO Corneel ‌Koster told the Financial Times.

Volotea – Introduced a pricing policy that could add fuel surcharges of up to 14 euros per passenger.

WestJet – Cutting seats, combining flights and adding a C$60 fuel surcharge on some bookings, according to the Canadian press