Paramount Skydance forecast first-quarter revenue below Wall Street estimates on Wednesday, citing an ongoing decline in legacy TV, but predicted strong growth in its streaming unit this year on additional subscribers and price increases.
The David Ellison‑led company called its bid for Warner Bros Discovery an “accelerant” to its goals, but would not comment further on the deal talks.
Warner Bros.’ board is evaluating whether Paramount’s revised $31-per-share bid for the entire company constitutes a superior offer to Netflix’s $27.75 a share proposal for its streaming and studio assets.
“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, revenue at Paramount’s TV Media unit declined 5% to $4.71 billion, hurt by softer advertising demand and a decline in affiliate revenue.
Legacy media companies face declining ratings and revenue across their cable portfolios, with cord-cutting accelerating the shift toward streaming.
The company said it expects to see some decline in revenue for its TV Media unit this year, “mostly in line with the industry headwinds around pay TV.”
Paramount expects revenue between $7.15 billion and $7.35 billion in the first three months of 2026, compared with analyst estimates of $7.36 billion in revenue, according to data compiled by LSEG.
Paramount reported total revenue of $8.15 billion for the fourth quarter, compared with estimates of $8.14 billion, according to data compiled by LSEG.
The filmed entertainment segment reported a 16% increase in revenue, primarily due to the consolidation of Skydance licensing.
Paramount+ streaming service ended the year with 78.9 million paid subscribers, and the company expects user growth to get a boost this year from adding Ultimate Fighting Championship to its exclusive lineup.
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