Warner Bros chief executive Kevin Tsujihara has stepped down from his position following claims that he promised roles to an actress with whom he was having an affair.
Tsujihara is one of the highest-ranking Hollywood executives to be felled by sexual misconduct allegations.
WarnerMedia chief executive John Stankey announced Tsujihara's exit as chairman and chief executive of Warner Bros, saying his departure was in the studio's "best interest".
"Kevin has contributed greatly to the studio's success over the past 25 years and for that we thank him," Stankey said.
"Kevin acknowledges that his mistakes are inconsistent with the company's leadership expectations and could impact the company's ability to execute going forward."
Earlier this month, WarnerMedia launched an investigation after a Hollywood Reporter article detailed text messages between Tsujihara and British actress Charlotte Kirk dating back to 2013.
James Packer was unwittingly caught up in the scandal when it emerged he had introduced Tsujihara to Kirk.
The messages suggested a quid pro quo sexual relationship between the aspiring actress and studio head Tsujihara, in which he made promises that he'd introduce her to influential executives and she'd be considered for roles in movies and television.
In a memo to Warner Bros staff, Tsujihara said he was departing "after lengthy introspection, and discussions with John Stankey over the past week".
"It has become clear that my continued leadership could be a distraction and an obstacle to the company's continued success," Tsujihara said.
"The hard work of everyone within our organisation is truly admirable, and I won't let media attention on my past detract from all the great work the team is doing."
Tsujihara's lawyer, Bert H Deixler, earlier stated that Tsujihara "had no direct role in the hiring of this actress".
He declined further comment Monday. Tsujihara, who has headed the Burbank, California, studio since 2013, earlier pledged to fully co-operate with the studio's investigation and apologised to Warner Bros. staff for "mistakes in my personal life that have caused pain and embarrassment to the people I love the most".