Warner Bros. Discovery posted a profit of $149 million, or 6 cents a share, in the second quarter, down from $1.58 billion, or 63 cents a share, a year earlier. Advertising and content revenue tumbled, narrowing profit as the company took a large charge related to recent acquisitions.

Analysts polled by Fact Set had expected a quarterly loss of 14 cents a share, but Warner beat forecasts with earnings of 6 cents a share. The weaker ad and content sales reflected a softening advertising market and lower viewership across its cable and streaming networks.

The quarter included a $1.1 billion pre‑tax charge for acquisition‑related amortization of intangibles, content fair value step‑up, and restructuring expenses. This sizable non‑cash item was the primary driver of the year‑over‑year profit decline, even though operating results showed modest improvement.

The results come as Paramount’s $81 billion bid to acquire Warner Bros. Discovery faces legal challenges, including antitrust scrutiny and shareholder lawsuits, which could delay or alter the proposed transaction and add uncertainty to the media industry.