Paramount Skydance’s first earnings report since the Skydance merger shows ambition amid turbulence. The newly renamed company reported third-quarter revenue that fell slightly short of Wall Street expectations. At the same time, it raised its merger cost-savings target to $3 billion, a clear sign that restructuring is accelerating.
Chairman and CEO David Ellison took over after the August 2025 merger, inheriting legacy media operations, streaming ambitions, and a turnaround mandate. The quarter included a loss driven by weakness in TV advertising and distribution, and a direct-to-consumer segment that is still in investment mode.
Ellison emphasized a push to modernize operations and scale streaming. Price increases for Paramount+ are planned for early 2026 to improve margins and fund content.
Beyond the headline numbers, management signaled three priorities:
- Integrate operations quickly and capture synergies to hit the $3 billion savings goal.
- Refocus legacy TV assets toward growth areas and stabilize advertising.
- Invest in studio output and franchise IP for both theatrical and streaming.
The takeaway: finances remain challenged, but the strategy is clear. Build the streaming business, trim the cost base, and deliver more high-impact content. The next year is critical. If savings lag or streaming growth underwhelms, Ellison’s plan faces tougher headwinds.
