Paramount Skydance Corporation

What they do

Paramount Skydance operates television broadcasting and entertainment assets, including the CBS broadcast network, television studios, a theatrical film business, and the Paramount+ direct-to-consumer streaming service. It became the successor issuer to Paramount Global on August 7, 2025, following the combination with Skydance Media, LLC. The company is led by Chairman and CEO David Ellison, who previously founded and ran Skydance Media.

Revenue drivers

• Direct-to-consumer streaming (Paramount+) — Paramount+ reached 81.6 million subscribers worldwide as of the Q2 2026 report, with 2 million net additions in the quarter; the company notes it exited about 3 million subscribers in 1H 2026 through selective strategic exits.
• Television studios and broadcast — The company expects over 90 series and 800+ episodes from its TV studios in 2026; CBS held seven of the top 10 broadcast series in the most recent broadcast season.
• Theatrical film — Theatrical output is nearly doubling from 8 releases in 2025 to 15 in 2026, with more than 15 planned for 2027; Q2 2026 slate was led by Scary Movie.
• Live sports and advertising — Sports rights include the NFL, WNBA, PGA TOUR, March Madness, a seven-year UFC agreement bringing every UFC event to Paramount+, Zuffa Boxing, and UEFA; the company's Upfront delivered double-digit growth in commitments.

Recent performance

Q2 2026 revenue was $6.91 billion, compared with $7.19 billion in Q1 2026 and $6.85 billion in Q2 2025. Second-quarter 2026 Paramount+ subscriber count reached 81.6 million worldwide with 2 million net additions, and the company said Q2 was its best retention quarter in Paramount+ history. Full-year 2026 adjusted EBITDA guidance was raised to $3.8-$3.9 billion (a 12.8% margin), with free cash flow conversion now expected at least 10%. Annual revenue declined from $29.65 billion in 2023 to $29.21 billion in 2024, and 2024 net loss was $6.19 billion (diluted EPS of -$9.34).

Strategy

Management frames three priorities: investing in growth businesses anchored by creative output, scaling direct-to-consumer globally, and driving enterprise-wide efficiency with a focus on long-term free cash flow. The company has nearly doubled its theatrical slate, greenlit 40 new or returning DTC series since August 2025 (including 10+ produced externally), and expanded live sports through UFC, Zuffa Boxing and UEFA. It continues to prepare for the proposed combination with Warner Bros. Discovery while executing its standalone plan.

Risks

• Warner Bros. Discovery merger uncertainty — The WBD merger is delayed by a lawsuit, with closing postponed until the earlier of five days after the court's ruling or June 1, 2027, and the agreement has a termination date of March 4, 2027, subject to one automatic extension to June 4, 2027.
• Large termination-fee exposure — Paramount paid a $2.8 billion termination fee to Netflix on behalf of WBD in Q1 2026 and could owe WBD a $7.0 billion regulatory termination fee if the merger fails on antitrust or regulatory grounds.
• Subscriber strategy execution — Paramount+ grew to 81.6 million subscribers but included roughly 3 million deliberate exits in 1H 2026, and continued reliance on selective exits and retention gains may pressure subscriber growth.
• Loss-making history — The company reported a 2024 net loss of $6.19 billion and a 2023 net loss of $608.0 million, with 2024 diluted EPS of -$9.34.

Outlook

Management raised full-year 2026 adjusted EBITDA guidance to $3.8-$3.9 billion, a 12.8% margin, and expects free cash flow conversion of at least 10%. The company plans 15 theatrical releases in 2026 and more than 15 in 2027, including Children of Blood and Bone, the fourth Sonic the Hedgehog installment, and Get Lite. It also expects over 90 series and 800+ episodes from its TV studios in 2026. The WBD merger remains subject to regulatory clearance and the pending lawsuit, with the European Commission approving it in July 2026 under the EU Merger Regulation and EU Foreign Subsidies Regulation.