Paramount Reports First Earnings Under CEO David Ellison

Paramount Skydance has released its third-quarter earnings, marking the first report since CEO David Ellison assumed leadership following the merger with Skydance Media. The company reported $6.7 billion in revenue for the quarter, with an operating income of $324 million and a net loss of $257 million. Ellison emphasized that scaling the direct-to-consumer (DTC) business is a top priority, alongside enhancing creative output. The company is targeting $30 billion in revenue by 2026 and anticipates achieving $3 billion in cost savings, an increase from the previously announced $2 billion. In Q3, DTC revenue rose 17% to $2.1 billion, while the TV division experienced a 12% decline due to advertising and subscription challenges. Paramount+ subscribers increased to 79.1 million, up from 77.7 million in the previous quarter, with plans to raise subscription prices in early 2026. Ellison stated that the company is launching a comprehensive strategic review to determine whether to divest non-core assets, beginning with Telefe in Argentina. Additionally, the company plans to invest over $1.5 billion in programming next year, including UFC content, scripted series, and feature films. Regarding mergers and acquisitions, Ellison noted that while the company has the capability to build internally, it remains open to strategic opportunities that align with its goals. The company is also undergoing a major round of layoffs, with approximately 2,000 positions being eliminated to realign the workforce around key priorities. Ellison emphasized that these steps are necessary to position Paramount for long-term success.