Paramount’s third-quarter revenue came in slightly below Wall Street’s expectations, but the company offered optimistic projections for 2026 and increased its cost-savings target from the Skydance merger.
**Third Quarter Financial Results**
For the period from July to September, Paramount reported revenue of $6.71 billion, compared to analysts’ expectations of $6.99 billion. The current management team and corporate structure have only been in place since August 7, when the Skydance merger officially closed.
**2026 Guidance and Cost Savings**
Looking ahead, Paramount issued guidance for 2026, projecting total revenue to reach $30 billion. This growth will be fueled by a “healthy acceleration” of streaming revenue and an emphasis on global profitability, according to executives’ letter to shareholders. On an adjusted basis, operating income before depreciation and amortization (OIBDA) is expected to hit $3.5 billion.
Cost savings from the Skydance merger, initially set at $2 billion, have now been increased to $3 billion.
**Merger Aftermath and Layoffs**
This earnings report is the first since the long-awaited and complex merger between Paramount and Skydance. Following the merger’s completion, the company announced a significant downsizing, laying off about 2,000 workers—approximately 10% of its global workforce—in pursuit of its promised cost savings.
**Dealmaking Activity and Strategic Moves**
In the three months since the deal’s completion, Paramount has continued a steady pace of dealmaking. The company has demonstrated strong financial backing—highlighting the resources of CEO David Ellison, his father (Oracle co-founder Larry Ellison), and private equity backer RedBird Capital.
Notable transactions include a $7.7 billion deal for UFC rights and a reported $150 million acquisition of Bari Weiss’s The Free Press. As part of that deal, Weiss—a former newspaper op-ed columnist with no broadcast TV experience—became editor in chief of CBS News.
Paramount also made headlines in the talent arena by recruiting the Duffer Brothers away from Netflix, even as Yellowstone creator Taylor Sheridan departed for a deal with NBCUniversal.
**Eyes Set on Warner Bros. Discovery**
Bigger than any of these recent agreements, however, is Ellison’s bid for Warner Bros. Discovery. Paramount has made three offers to acquire the company, which is estimated to be valued around $60 billion. Warner Bros. Discovery is also reportedly considering interest in its studios-and-streaming division and could potentially split into two separate companies.
**Wall Street Reaction**
Investors responded positively to the earnings results, sending Paramount shares up in after-hours trading following weeks of sluggishness. The stock ended the regular session at $15.25, up 1%.
**Looking Forward**
With ambitious cost-savings and revenue targets, continued dealmaking, and high-profile merger activity, Paramount is positioning itself for a major transformation in the years ahead. CEO David Ellison and the executive team addressed these topics and more during a call with Wall Street analysts following the release of results.
https://deadline.com/2025/11/paramount-earnings-skydance-david-ellison-1236612953/