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RESTRUCTURING AND TRANSACTION-RELATED ITEMS | 6 Months Ended
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Jun. 30, 2026
Restructuring and Related Activities [Abstract] |
RESTRUCTURING AND TRANSACTION-RELATED ITEMS | RESTRUCTURING AND TRANSACTION-RELATED ITEMS During the three and six months ended June 30, 2026 and 2025, we recorded the following within “Restructuring and transaction-related items” on the Consolidated Statements of Operations.
| Successor |  |  | Predecessor |  | Successor |  | Predecessor |
| Three Months Ended June 30, |  |  | Three Months Ended June 30, |  | Six Months Ended June 30, |  |  | Six Months Ended June 30,
| 2026 |  |  | 2025 |  | 2026 |  |  | 2025
Severance (a) |  | $35 |  |  |  |  | $177 |  |  |  | $35 |  |  |  |  | $177 |
Exit costs |  | — |  |  |  |  | — |  |  |  | — |  |  |  |  | 65 |
Restructuring charges |  | 35 |  |  |  |  | 177 |  |  |  | 35 |  |  |  |  | 242 |
Transaction-related items |  | 153 |  |  |  |  | 4 |  |  |  | 256 |  |  |  |  | 24 |
Restructuring and transaction-related items |  | $188 |  |  |  |  | $181 |  |  |  | $291 |  |  |  |  | $266 |
(a) Severance costs include the accelerated vesting of stock-based compensation. Restructuring Charges During the second quarter of 2026, we recorded restructuring severance costs of $35 million associated with changes in management and aligning the business around our strategic priorities following the Skydance Transactions, including costs related to a plan under which severance payments are being provided to certain eligible employees who voluntarily elected to participate. Restructuring charges for the three and six months ended June 30, 2025 included severance costs of $177 million associated with strategic changes in our global workforce in order to streamline our organization. In addition, during the six months ended June 30, 2025, we recorded exit costs of $65 million, primarily for the impairment of lease assets that we ceased use of in connection with initiatives to reduce our real estate footprint. The impairments were primarily the result of a decline in market conditions since the inception of these leases and reflect the difference between the estimated fair values, which were determined based on the expected future cash flows of the lease assets, and the carrying values. The following is a rollforward of our restructuring severance liability, which is recorded in “Other current liabilities” and “Other liabilities” on the Consolidated Balance Sheets, and is expected to be substantially paid by the end of 2027.
| Successor
|  |  | 2026 Activity |  |
| Balance at December 31, 2025 |  | Charges (a) |  | Payments and other |  | Balance at June 30, 2026
Studios |  | $133 |  |  | $6 |  |  | $(44) |  |  |  | $95 |
Direct-to-Consumer |  | 53 |  |  | — |  |  | (20) |  |  |  | 33 |
TV Media |  | 384 |  |  | 15 |  |  | (168) |  |  |  | 231 |
Corporate |  | 135 |  |  | 5 |  |  | (29) |  |  |  | 111 |
Total |  | $705 |  |  | $26 |  |  | $(261) |  |  |  | $470 |
(a) Excludes stock-based compensation expense of $9 million. Tr ansaction-Related Items Transaction-related items include costs directly associated with prospective and completed mergers and acquisitions, as well as related integration activities. During the three and six months ended June 30, 2026, we recorded transaction-related costs of $153 million and $256 million, respectively, principally for legal, advisory, and other professional fees associated with the planned WBD Merger and related integration. During the three and six months ended June 30, 2025, we recorded legal, advisory, and other professional fees relating to the Skydance Transactions of $4 million and $24 million, respectively.

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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