Paramount Sees Skydance Merger Closing In First Half As Streaming & ‘Sonic’ Bright Spots In Mixed Q4

Paramount Global confirmed today that despite all the noise it still expects the merger with Skydance to close in the first of the year as the company reported mixed quarterly numbers with misses on the top and bottom lines.

Stock-based and other executive compensation was a one-time hit on earnings, Deadline hears. And revenue was softer that Wall Street forecasts. Numbers beat on key cash flow and other metrics.

Par swung to a net loss of $224 million for the fourth quarter – from a $514 million profit the year before — on revenue up 5% to $7.98 billion for the quarter.

DTC was strong as Paramount+ added 5.6 million new subscribers — its best quarter of subscriber growth in two years — and 10 million for the full year to end at 77.5 million. Streaming losses continued to narrow, to $286 million from $490 million as Par+ is on track for domestic profitability by year end.

Paramount+ scored three of the top 10 SVOD riginals with a Taylor Sheridan trifecta of Landman, Tulsa King and Lioness.

Pluto TV had a record year, growing 16% in hours watched for Q4 year-over-year and 8% for the full year.

Filmed Entertainment revenue surged 67% to $1.08 billion on theatrical, which saw $336 million jump driven by the releases of Gladiator II and Sonic the Hedgehog 3. The latter is approaching nearly $500 million at the global box office, making it the highest-grossing film in the franchise, and is expected to be one of the 10 most profitable Paramount Pictures releases of the last decade. Across its three installments, the franchise has reached $1.2 billion at the global box office.

Ridley Scott’s Gladiator II crossed $460 million globally.

Profit fell by $66 million on higher marketing costs associated with the theatrical releases of five films in the quarter compared to one film in the year ago period.

TV Media advertising revenue decreased 4%, reflecting declines in the linear advertising market and fewer sporting events on CBS, partially offset by higher political advertising.  

TV Media affiliate and subscription revenue decreased 7% reflecting subscriber declines, partially offset by price increases. This segment continues to be a soft spot as Paramount and its media peers transition to streaming.

“We are proud of the transformative year we delivered since becoming Co-CEOs, which marks a significant turning point for Paramount as we shift into a streaming-first company,”

said George Cheek, Chris McCarthy and Brian Robbins.

“In Q4, Paramount+ saw the highest level of engagement yet and achieved a new record, ranking as the #2 domestic SVOD service for hours watched across all Original Series. These remarkable achievements would not have been possible without the hard work of our talented teams and creative partners for whom we are deeply appreciative.”

The trio will host a conference call at 4:30 ET.