Key Points:
- Paramount Skydance posted a $257M Q3 loss driven by weak TV and ads
- $3B cost cuts planned, 1,600 jobs cut
- Streaming focus with $1.5B content push
Paramount Skydance reported a challenging third quarter, marking its first earnings release since the completion of the multibillion-dollar merger earlier this year. The company posted revenue of about $6.7 billion for the quarter ended September 30, undershooting market expectations. Despite strong performance in its streaming operations, the overall results were pulled down by persistent declines in the traditional television and advertising segment.
The company recorded a net loss of approximately $257 million during the period, with executives attributing the shortfall to weak ad spending, lower distribution fees, and continued softness in linear networks. As part of its broader integration plan, Paramount Skydance has raised its cost-saving target from the previously announced $2 billion to at least $3 billion. This adjustment includes additional layoffs, with around 1,600 positions expected to be cut as restructuring efforts accelerate.
Strategic Pivot Toward Streaming and Scalable Content
Led by CEO David Ellison, the newly formed conglomerate is prioritizing a content-driven and platform-focused transformation. Streaming remains the company’s fastest-growing business, with revenue rising sharply year-over-year and subscriber engagement strengthening across platforms. To support this momentum, Paramount Skydance plans to invest more than $1.5 billion in new programming for 2026, emphasizing a slate that includes at least 15 films annually and an expanded pipeline of franchise-driven projects.
The company is also pushing forward with major technology consolidation. Paramount+, Pluto TV, and BET+ are expected to transition to a unified backend ecosystem, aimed at streamlining operations and improving viewer experience.
Additionally, a company-wide enterprise resource planning system is scheduled to roll out by early 2027 to support decision-making and reduce administrative overhead. Ellison indicated that strategic acquisitions could form a part of long-term growth plans as the company evaluates opportunities that align with its “buy versus build” philosophy.
Industry Headwinds and the Road Ahead
The mixed quarterly performance highlights the structural challenges facing legacy media companies. A double-digit decline in the TV segment reflects the broader, steady erosion of traditional advertising as audiences continue shifting toward streaming platforms. Paramount Skydance has begun trimming non-core international assets and tightening operational structures in key markets, actions aimed at reducing legacy burdens while freeing resources for digital expansion.
Despite current pressures, the company remains optimistic about its long-term positioning. Paramount Skydance is forecasting full-year revenue of around $30 billion for 2026, supported by its content investments, technology upgrades, and growing streaming footprint. Investors and analysts will be watching how effectively the company manages its transition amid competitive pressures and evolving consumer habits, as the merger’s long-term value will depend on how quickly the combined entity can stabilize and scale.
