Paramount Skydance issues weak forecast as it battles Netflix to

Paramount Skydance issues weak forecast as it battles Netflix to

Paramount Skydance forecast first-quarter income below Wall Street estimates on Wednesday, citing an ongoing decline in legacy TV, however predicted strong development in its streaming unit this 12 months on further subscribers and value will increase.

The David Ellison‑led company called its bid for Warner Bros Discovery an “accelerant” to its targets, however wouldn’t remark additional on the deal talks.

Warner Bros.’ board is evaluating whether or not Paramount’s revised $31-per-share bid for the complete company constitutes a superior supply to Netflix’s $27.75 a share proposal for its streaming and studio belongings.

David Ellison’s Paramount is searching for to purchase Warner Bros. Discovery. Getty Images

“Paramount Skydance’s quarter isn’t really about the headline numbers – it’s about whether streaming momentum can outrun the structural unwind in linear,” PP Foresight analyst Paolo Pescatore said.

During the fourth quarter, income at Paramount’s TV Media unit declined 5% to $4.71 billion, harm by softer promoting demand and a decline in affiliate income.

Legacy media firms face declining rankings and income across their cable portfolios, with cord-cutting accelerating the shift towards streaming.

The company said it expects to see some decline in income for its TV Media unit this 12 months, “mostly in line with the industry headwinds around pay TV.”

Revenue at its TV media unit declined 5% to $4.71 billion in the fourth quarter. REUTERS

Paramount expects income between $7.15 billion and $7.35 billion in the first three months of 2026, in contrast with analyst estimates of $7.36 billion in income, according to data compiled by LSEG.

Paramount reported whole income of $8.15 billion for the fourth quarter, in contrast with estimates of $8.14 billion, according to data compiled by LSEG.

The filmed leisure phase reported a 16% enhance in income, primarily due to the consolidation of Skydance licensing.

Paramount+ streaming service ended the 12 months with 78.9 million paid subscribers, and the company expects consumer development to get a lift this 12 months from including Ultimate Fighting Championship to its exclusive lineup.

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