Key facts
- Paramount Skydance reported Q2 revenue of $6.91 billion, up 1% year-over-year, with profit missing analyst estimates.
- Streaming revenue rose 9% to nearly $2.5 billion, adding 2 million subscribers.
- A federal judge set a March 2027 trial date for antitrust lawsuits challenging Paramount Skydance's planned acquisition of Warner Bros. Discovery.
- Paramount Skydance could owe Warner Bros. Discovery shareholders approximately $1.18 billion in ticking fees if the merger is not finalized by the trial's conclusion.
- The company agreed to delay the acquisition until at least June 2027, pending a court ruling.
Paramount Skydance reported mixed second-quarter financial results, with revenue rising 1% to $6.91 billion, exceeding analyst expectations, but profit fell short of estimates. The company's streaming business saw a 9% revenue increase to nearly $2.5 billion, adding 2 million subscribers. The studio business reported $1.3 billion in revenue, while the television unit saw a 9% decline to $3.1 billion.
The company is working to close its planned acquisition of Warner Bros. Discovery, a deal facing antitrust challenges. Paramount stated that lawsuits filed by California and 11 other states, along with the Writers Guild of America, "does not reflect the realities of today's highly competitive entertainment marketplace." CEO David Ellison reiterated his expectation for the transaction to close and argued that concerns were less about market concentration and more about trust.
A federal judge has set a March 2027 trial date for the antitrust lawsuits, with Paramount agreeing to pause the transaction until at least June 2027, pending a court ruling. The company could owe up to $1.7 billion in ticking fees to Warner Bros. Discovery shareholders if the deal is delayed until then, with a $7 million daily fee applicable if the merger is not finalized by October 1.