Hollywood
Paramount Skydance posts $8.15bn in Q4, warns of ‘below Wall Street estimates’ Q1 growth
Linear TV drag offsets subscriber gains and price rises at Paramount plus
LOS ANGELES: Paramount Skydance forecast first-quarter revenue below Wall Street expectations, blaming a continued slide in its legacy television business even as it predicts robust growth in streaming this year.
The David Ellison-led group said revenue for the first three months of 2026 would land between $7.15 billion and $7.35 billion, narrowly missing analysts’ expectations of $7.36 billion, according to data from LSEG. The outlook underscores the structural strain facing traditional broadcasters as audiences abandon pay TV for on-demand platforms.
Paramount Skydance struck a confident note on streaming, pointing to subscriber growth and price increases at Paramount plus as key drivers. The platform ended 2025 with 78.9 million paid subscribers and expects further gains this year, helped by the addition of the Ultimate Fighting Championship to its exclusive lineup.
The company’s fourth-quarter results reflected the same fault lines. Total revenue edged up to $8.15 billion, just above estimates, while its TV Media unit posted a 5 per cent fall to $4.71 billion, hit by weaker advertising and declining affiliate fees. Paramount expects further softness in the segment this year, broadly in line with industry-wide pay-TV headwinds.
By contrast, filmed entertainment revenue jumped 16 per cent, largely due to the consolidation of Skydance licensing into the group’s accounts.
Investor attention, however, remains fixed on the corporate chessboard. Paramount Skydance described its bid for Warner Bros Discovery as an “accelerant” to its long-term strategy, though it declined to comment further on the talks.
Warner Bros Discovery’s board is weighing whether Paramount’s revised $31-a-share offer for the entire company tops a competing $27.75-a-share proposal from Netflix for its streaming and studio assets. The contest centres on prized film and television libraries housing franchises such as Harry Potter and Game of Thrones.
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