Paramount Skydance Corp. on Wednesday reported its fourth quarter earnings, as it finds itself in the middle of a renewed push to pry Warner Bros. Discovery away from the streaming giant Netflix.
And with investor interest in the deal sure to be high, the company explained in a letter from CEO David Ellison that it views the megadeal as a key strategic effort: “While we are confident in our standalone strategy and growth trajectory for Paramount, we view WBD as an accelerant to achieving these goals more quickly.”
PSKY reported revenues of $8.14 billion in Q4, up 2 percent from the predecessor company a year earlier, with operating loss of $339 million and adjusted OIBDA of $612 million.
The company’s linear TV business faced headwinds, even as its streaming business posts double digit growth. The TV media segment saw revenue fall by 5 percent year-over-year to $4.7 billion even as direct-to-consumer revenue rose by 10 percent to $2.2 billion. Revenue at Paramount+ rose 17 percent to $1.8 billion, with Paramount+ now hitting 78.9 million subscribers.
In the letter, Ellison also delivered updates on what he calls the company’s “North Star” priorities, including his ambitions in creative, noting deals the company cut with Jon M. Chu and Issa Rae.
He also discussed the company’s “Paramount One” initiative, which is his effort to drive a unified marketing push around critical or tentpole programming.
“It is a priority for us to make sure that we can win in the content space, to make sure that we are the most technologically capable media company and really have the appropriate operational efficiencies across the company,” Ellison said on the company’s earnings call. “That’s what really drives all the decisions here, and I think we’re off to a really strong start in the first six months.”
And notably he mentioned CBS News, where he wrote that “transformation is essential” given historic lows in media trust.
“The goal is to build a modern news organization equipped for the digital age and rooted in facts, rigorous reporting, and audience-first storytelling,” Ellison wrote, adding that CBS News’ streaming platform will be getting “new formats and programming.”
For 2026, the company is projecting revenue of $30 billion, up 4 percent year over year, though it warned that Paramount+ would be impacted from a decision to exit a hard bundle with between four and five million subscribers.
And Ellison reiterated that he and the management team are playing a long game with the company: “As we’re the largest shareholder of the class B [shares], we really 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’re approaching this.”
On the earnings call, Ellison and other Paramount executives expanded on those thoughts, outlining their thinking around AI, Pluto TV and free streaming, and the future of the company’s studio business.
On AI, Ellison said that “we really view artificial intelligence as an unbelievable tool for artists that will be a significant unlock on creativity,” adding that the company wants to “10X” headcount on roles that work on AI-related tech. That being said:
“I don’t think there is anything that’s going to replace artists. I don’t think there’s anything that’s going to replace the creativity of original storytelling,” Ellison added, noting that even with OpenAI’s Sora, it was IP-driven videos that drove engagement.
“AI is going to be something that is I think a tailwind for us as a company and and we’re excited to help be key drivers of that innovation,” he said.
As for Pluto TV and the free streaming space generally, Ellison said that the company is committed to it:
“I am a big believer in in the FAST space. And I think when you really look at globally FAST is something that is only going to grow in importance,” he said. “When you look at the signs that are also really encouraging on Pluto is we are seeing engagement grow. The headwind we’re facing is really monetization, and we’re doing several things to correct that.
“And while Pluto has always been a leader in the FAST space, it’s a profitable platform, it was from our perspective, underinvested in by the previous owners and managers, both in a content standpoint as well as from a product standpoint,” he added.
