Paramount Skydance Corp. on Wednesday reported its fourth-quarter earnings, finding itself in the middle of a renewed push to keep Warner Bros. at bay. Discovery is about streaming giant Netflix.
With investor interest in the deal certainly high, the company made clear in a letter from CEO David Ellison that it views the blockbuster deal as a key strategic effort: “While we are confident in our standalone strategy and growth trajectory for Paramount, we view WBD as an accelerator to achieve these goals more quickly.”
PSKY reported revenue of $8.14 billion in the fourth quarter, up 2 percent from the company’s prior year, with an operating loss of $339 million and adjusted OIBDA of $612 million.
The company’s linear TV business has faced headwinds, even as its streaming business has posted double-digit growth. The TV media segment saw revenues decline 5 percent year over year to $4.7 billion even as direct-to-consumer revenues rose 10 percent to $2.2 billion. Paramount+ revenue rose 17 percent to $1.8 billion, with Paramount+ now reaching 78.9 million subscribers.
In the letter, Ellison also provided updates on what he calls the company’s “North Star” priorities, including his creative ambitions, pointing to deals the company has struck with Jon M. Chu and Issa Rae.
He also discussed the company’s “Paramount One” initiative, his effort to drive a unified marketing campaign around important or pivotal programming.
“It’s a priority for us to make sure we can win in the content space, to make sure we’re the most technologically capable media company and we really have the right operational efficiencies across the company,” Ellison said on the company’s earnings call. “That’s what drives all the decisions here, and I think we’re off to a really strong start in the first six months.”
He specifically mentioned CBS News, where he wrote that “a shift is necessary” given historic lows of trust in the media.
“The goal is to build a modern news organization equipped for the digital age and rooted in facts, accurate reporting and audience-first storytelling,” Ellison wrote, adding that CBS News’ live streaming platform will get “new formats and programming.”
For 2026, the company expects revenue of $30 billion, up 4 percent year-over-year, though it warned that Paramount+ would be affected by the decision to exit the difficult package of between four and five million subscribers.
Ellison reiterated that he and the management team are playing the long game with the company: “Given that we are the largest Series B shareholder [shares]we approach everything through the lens of how do we create long-term shareholder value, which really means we’re long-term investors, we’re long-term owner operators, and we really have a long-term horizon in terms of how we approach this.
On the earnings call, Ellison and other Paramount executives expanded on these ideas, outlining their thoughts on artificial intelligence, Pluto TV, free-to-air streaming, and the future of the company’s studio business.
Regarding AI, Ellison said, “We really look at AI as an incredible tool for artists that will be a huge release of creativity,” adding that the company wants to increase headcount “10X” in roles working on AI-related technology. To be said:
“I don’t think there’s anything that’s going to replace artists. I don’t think there’s anything that’s going to replace creativity in original storytelling,” Ellison added, noting that even with OpenAI’s Sora, it was IP-based videos that drove engagement.
“I believe AI will be a tailwind for us as a company, and we are excited to help be key drivers of this innovation,” he said.
As for Pluto TV and the free streaming space in general, Ellison said the company is committed to it:
“I’m a big believer in the FAST space. I think when you really look at FAST globally, it’s something that’s going to become increasingly important,” he said. “When you look at the really encouraging signs on Pluto, it’s that we’re seeing growth in engagement. The headwind we’re facing is actually monetization, and we’re doing several things to correct that.
“Although Pluto has always been a leader in the FAST space, it is a profitable platform that, in our view, the previous owners and managers had not invested in sufficiently, both from a content standpoint and a product standpoint,” he added.
