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Paramount Skydance reports mixed second quarter as Warner deal faces March trial. 05 Aug 2026 04:08AM (Updated: 05 Aug 2026 06:33AM) Add CNA as a trusted source to help Google better understand and surface our content in search results. LOS ANGELES, CALIFORNIA, Aug 4: Paramount Skydance reported mixed second-quarter results on Tuesday, with higher streaming and studio revenue offsetting declines in television, as the company works to close its planned $110 billion acquisition of Warner Bros. Discovery. The entertainment giant's revenue rose 1 per cent to $6.91 billion, exceeding estimates of $6.88 billion, according to data compiled by LSEG. Second-quarter profit came in at $41 million, or 4 cents a share, compared with analyst estimates of $109 million or 9 cents a share. Paramount CEO David Ellison said he expects to close the merger with Warner Bros. even as a federal judge on Tuesday set a March trial date for an antitrust suit brought by a dozen states seeking to block the deal. In an earnings call, Ellison said the company is "absolutely open to finding a solution out of court, but we also really believe that we'll win at trial." For the second quarter, Paramount's streaming business reached nearly $2.5 billion in revenue, up 9 per cent from the same quarter a year ago. The company said the "Yellowstone" sequel, "Dutton Ranch," and sporting events like the UFC Freedom 250 cage match and the FIFA World Cup helped its marquee Paramount+ service add 2 million new subscribers, bringing the total to 81.6 million. Chief Operating Officer Andy Gordon told Reuters the company has merged its streaming services onto a single technology platform, allowing it to more effectively promote content. For the second quarter, Paramount's studio business reported revenue of $1.3 billion, reflecting strong sales to third parties like Netflix and Amazon Prime Video, and better content licensing, offset by a weaker summer theatrical slate whose highlight was "Jackass: Best and Last," compared with last year's "Mission: Impossible - The Final Reckoning." Gordon said Paramount has made headway in consumer products licensing, striking a multiyear deal with Mattel for its Teenage Mutant Ninja Turtles entertainment brand. Sales for the television unit, which includes broadcaster CBS and cable networks such as Comedy Central, declined 9 per cent to $3.1 billion. The company expects revenue in the current quarter ending in September to range between $6.95 billion and $7.15 billion, based on higher expected gains in streaming and studios, with profit before certain items expected to reach between $875 million and $975 million. The company said the lawsuit filed by California and 11 other states, seeking to block its planned $110 billion acquisition of Warner Bros "does not reflect the realities of today's highly competitive entertainment marketplace," in its earnings statement. A federal judge in California ruled on Tuesday that the lawsuit will go to trial in March next year. Ellison published an essay in the New York Times on Tuesday, arguing that the concern over the pending merger stemmed less from market concentration than "whether I can be trusted as a steward of Warner's CNN." Ellison promised it would remain independent, a statement that affirmed his interest in keeping the news network as part of the deal. Paramount agreed to pause the transaction until June 2027 at the latest, as it awaits a ruling in the antitrust case. The company could owe as much as $1.7 billion in ticking fees to Warner Bros. shareholders if the deal is delayed until then. The fee costs $7 million a day if the merger does not close by September 30.

Paramount to unwind Universal joint venture to secure WBD acquisition. Discover more Executive Branch Geographic Reference Paramount Skydance has offered concessions to the European Commission, including unwinding its joint film venture, to secure approval for its 110 billion dollar Warner Bros. Discovery acquisition. Meanwhile, Oregon has filed for a deal delay, and British regulators weigh interventions over media and streaming impacts. The cinema landscape in Europe and the broader global entertainment market face a significant shake-up as Paramount seeks regulatory clearance for its massive industry consolidation. The European Commission extended its decision deadline to July 22 after Paramount offered structural remedies, shifting the timeline for a deal that has triggered antitrust scrutiny on multiple fronts. Ditching the Universal joint venture in Europe. To appease antitrust enforcers in Brussels, Paramount proposed dismantling its long-standing distribution partnership with Universal Pictures. The 50-50 joint venture, known as United International Pictures, has operated across international territories for decades, handling releases in roughly 100 markets. Under the terms submitted to the European Commission, Paramount must fully unwind its links to UIP within 13 months of closing the Warner acquisition. Headquartered in Chiswick, west London, UIP posted sales of nearly £198M ($263M) in 2024, according to accounts filed at the UK's Companies House. The firm recorded a pre-tax profit of £12.2M during that period. While the company once boasted box office takings of 2.5 billion dollars during its peak, its footprint shrank significantly in 2007 when Paramount and Universal took direct control of distribution in major markets like France, Italy, and Brazil. Paramount's exit leaves uncertainty for UIP's 200 employees, even as the firm continues handling titles from other studios, such as Lionsgate's Michael. Former executives note that the dissolution marks the end of an era that combined major Hollywood studio slates with local European decision-making. Regulatory hurdles across the Atlantic and in britain. While the European antitrust enforcer moves toward potential clearance following the proposed remedies, Paramount faces mounting pressure in other jurisdictions. In the United States, the Department of Justice cleared the transaction, but state attorneys general are mobilizing. Oregon's attorney general initiated legal action demanding a court order to halt the transaction. Oregon Attorney General Dan Rayfield filed for a 60-day delay on closing and requested that Paramount Skydance hand over documents regarding lobbying efforts for the merger. State officials accused the company of dodging subpoenas while racing to finalize the agreement before antitrust investigations conclude. Additional U.S. states, including New York and California, are also preparing lawsuits to block the merger. Across the Atlantic, British authorities indicated they may intervene independently. The UK government flagged concerns regarding the merger's potential impact on news broadcasting, children's television programming, and streaming services. Industry concentration and cinema operator concerns. Industry analysts and cinema advocacy groups question whether shedding joint distribution ventures will truly protect market competition. The International Union of Cinemas, representing operators across 39 European territories, argues that while the UIP remedy addresses structural distribution issues, it fails to resolve broader risks tied to theatrical windows and exclusive distribution arrangements outside UIP territories. Independent market observers point out that folding major studio operations together merely consolidates power among fewer corporate entities. One industry executive noted that market pieces will simply shift between fewer players, resulting in diminished competition and a lack of incentive for innovation. "While the remedy addresses an important structural issue, it does not tackle similar risks that arise from theatrical distribution arrangements outside the UIP territories, nor does the Commission decision address a number of wider concerns that UNIC raised throughout the review." Discover more Engineering & Technology Politics (Right) College Sports Laura Houlgatte, UNIC Chief Executive, via Deadline Alternative distribution realities for Paramount. Once outside of UIP, Paramount will need to establish alternative distribution networks in nearly 100 territories. While the studio could potentially leverage Warner Bros. Pictures operations or piggyback on existing partnership agreements - such as Warner's arrangement with SF Studios in the Nordic region - strict regulatory conditions apply. Any third-party partner handling Paramount's slate must maintain zero distribution ties to Universal or Disney to avoid violating European Commission rules. Observers emphasize that divesting from a 44-year joint venture is a calculated concession for Paramount when weighed against the scale of an industry-reshaping transaction valued at 110 billion dollars. Even so, navigating individual market restrictions and lingering state-level lawsuits in the U.S. means the path to final execution remains turbulent. Pending rulings and next decisions. The European Commission holds the immediate timeline. Market watchers await whether Brussels will accept the structural carve-outs as sufficient or demand deeper concessions, while courts in the United States review state-level requests to pause the merger timeline. Worth a look July 30, 2026 In "Entertainment" European Union antitrust regulators signed off on the $110 billion Paramount-Warner Bros. Discovery merger this Wednesday, contingent on specific distribution concessions. While this provides a major regulatory win, the deal remains stalled in the United States by a temporary restraining order issued last week following a lawsuit from state attorneys... July 22, 2026 In "Entertainment" July 22, 2026 In "Entertainment" Culture critic with bylines in Variety and Rolling Stone. Tracks film, TV, music and celebrity trends across continents.