Paramount sees streaming gains as company continues to pursue Warner Bros. Discovery - Los Angeles Times

Los Angeles Times

by Samantha Masunaga, Meg James

February 25, 2026

AI-Generated Deep Dive Summary

Paramount Skydance reported strong financial performance in its fiscal fourth quarter of 2025, driven by significant growth in its streaming business. Revenue reached $8.1 billion, a 2% year-over-year increase, with streaming contributing $2.2 billion—a 10% jump—and filmed entertainment also showing strong gains at $1.3 billion, up 16%. However, the TV media segment faced challenges, dropping 5% to $4.7 billion due to declining traditional broadcast subscribers and reduced advertising spending, including political ads and the absence of the Big 10 championship. Despite an operating loss of $339 million, largely attributed to restructuring costs from its merger with Skydance, Paramount’s CEO David Ellison expressed optimism about the company’s future. He highlighted investments in original content, UFC, and tech upgrades for Paramount+ as key drivers of growth. The company anticipates $30 billion in revenue for 2026, a 4% increase, with streaming and filmed entertainment leading the charge. Paramount’s pursuit of Warner Bros. Discovery remains a focal point, with the company offering $31 per share—a $7 billion commitment if regulatory hurdles block the deal. Analysts like John Conca question the strategic risks of acquiring Warner, given Paramount’s own challenges in traditional TV and its heavy exposure to linear networks. The deal could nearly double Paramount’s risk in this area while aiming for faster growth. This situation matters to readers as it highlights the evolving landscape of media mergers and the competitive pressures facing major entertainment companies. Paramount’s streaming success and strategic bets underscore the industry’s shift toward digital platforms, while its financial struggles in traditional TV raise questions about its ability to compete on a larger scale.

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Originally published on Los Angeles Times on 2/25/2026