Ahead of Paramount closing its $8 billion merger with Skydance on Aug. 7, the company reported a solid quarter. Revenue increased 1% year-over-year while profits came in at $57 million.
“Many on this call understand the enormous importance of this business to my family and to me,” Shari Redstone, non-executive chair of Paramount’s board of directors, said during Thursday’s earnings call. “Beginning nearly 40 years ago, my father, Sumner Redstone, built Viacom and CBS by bringing together a group of the best assets in media, news and entertainment. While people often debated whether content or distribution ruled the day, my father’s steadfast belief was that content was king, even against the backdrop of enormous change. That core business philosophy remains the reality for our business and industry.”
During the call, very little was revealed about what Skydance chief David Ellison’s plans will be for the newly formed company, which has Wall Street intrigued as well as competitors. They are also interested in the role David’s father, Larry, the billionaire co-founder of Oracle who largely financed the Paramount bid, will play at the company.
Instead, Redstone thanked Paramount’s shareholders as well as the company’s three co-CEOs for their dedication to and belief in the company. She stated she is “confident” that Skydance’s vision paired with the company’s technology and resources will allow it to “build on Paramount legacy and position.”
“I am proud that when the transaction closes, we will be turning over a healthy business with a strong foundation for success,” Redstone said. “One year ago, that was not a foregone conclusion against the backdrop of tough industry conditions in the linear business and a pending transaction. The progress we have made is a testament to the talent, focus and dedication of the people of Paramount under the leadership of George Cheeks, Chris McCarthy and Brian Robbins.”
Here are the key takeaways:
[Note: Last year during the second quarter of 2024, Paramount recorded a goodwill impairment charge for its cable networks unit, which totaled $5.98 billion. That’s why some of the year-over-year comparative numbers may look odd.]Net income: A profit of $57 million, compared to the loss of $5.4 billion a year ago.
Earnings Per Share: $0.08, compared to $0.37 per share expected by analysts surveyed by Yahoo Finance.
Revenue: $6.85 billion, a 1% year-over-year increase compared to $7.19 billion expected by analysts surveyed by Yahoo Finance.
Operating income: $399 million, compared to a loss of $5.32 billion a year ago. On an adjusted basis, it fell 5% to $824 million.
Streaming subscribers: Lost 1.3 million subscribers for a total of 77.7 million.
As for McCarthy, who spoke on behalf of the three co-CEOs, he pointed to the fact that OBIDA has grown 30% to $3.1 billion over 2025, a jump that was largely driven by a nearly $1.2 billion improvement in DTC profitability. He also noted that in the first half of 2025 Paramount+ saw 19% revenue growth and watch time increased by 14%. As for CBS, the network continued to be the primetime leader in broadcast for its 17th consecutive season. Finally, the film side added more installments from profitable franchises like “Sonic the Hedgehog,” “Smile,” “A Quiet Place” and “Mission: Impossible.”
“Today, we are substantially better positioned to thrive in the streaming future,” McCarthy said. “At Paramount+, we made a content strategy choice to go against the conventional wisdom of more originals is better. Our strategy isn’t about the volume of originals. Rather, it’s about the volume of original hits.”
McCarthy also thanked his co-CEOs, Redstone and her family, the shareholders and the wider Paramount team.
“Under Shari’s leadership, Paramount has transitioned from a disconnected collection of TV assets into a streaming-first company with a powerful portfolio of hit content and franchises,” McCarthy said. “We thank you, Shari, for your vision to see where it was all going, your leadership of the company and, on a personal level, for your friendship to all of us and to our board.”
Upon closing, shares will begin trading on the Nasdaq under a new ticker symbol: PSKY.
One of the most interesting stories from this quarter had to do with Paramount’s DTC offerings, which were up 15% overall. Streaming revenue growth outpaced linear declines during the quarter. The TV and Media segment saw a 6% decrease, hitting $4 billion, and affiliate and subscription revenue decreased 7% due to declines when it came to linear subscribers. However, the DTC division generated $157 million in adjusted OBIDA (operating income before depreciation and amortization), a year-over-year improvement of $131 million.
Though revenue brought in by Paramount+ was up 23%, the streamer lost 1.3 million subscribers during the quarter. The disparity was because of pricing increases for the streamer as well as improvements in its churn rate. As for what caused that million-plus drop, that was due to the expiration of an international hard bundle deal. As for viewing hours, those were up 29% year-over-year across Paramount+ and Pluto TV.
Under the two-step deal, Skydance is set to acquire controlling shareholder Shari Redstone’s holding company National Amusements in August, which controls 77.4% of the Paramount Class A common stock outstanding and approximately 9.5% of the overall equity of the company, before merging with the Hollywood studio. The deal provides $2.4 billion for Redstone, $4.5 billion to non-NAI Paramount shareholders and an additional $1.5 billion in new capital to help pay down debt and recapitalize the company’s balance sheet.
Ellison will serve as New Paramount’s CEO, while NBCU alum Jeff Shell will serve as president. Other additions to the leadership team include Cindy Holland, a former Netflix executive who has been serving as a senior advisor to Ellison since October, and Skydance chief creative officer Dana Goldberg, who is set to lead the motion picture side of the studio. Sony’s Josh Greenstein is also in talks to join the company in an undefined role.
Redstone will exit Paramount’s board of directors and Paramount co-CEO Chris McCarthy will exit the company following the deal’s closing.
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