Even though its streaming service saw significant growth in the fourth quarter, Paramount Global Inc. reported that it was still on track to complete its merger with Skydance in the first half of this year.
The media business (PARA) announced a $224 million quarterly net loss on Wednesday, which translates to 33 cents per share. That was less than the $514 million profit, or 77 cents per share, made during the same period last year. A average calculated by FactSet indicated that analysts had projected a gain of 13 cents per share.
Although revenue increased to $7.98 billion from $7.64 billion in the previous year, it fell short of the FactSet estimate of $8.101 billion.
In Wednesday’s after-hours trade, Paramount’s stock dropped 2%.
The company’s streaming business, which is part of its direct-to-consumer division, saw an 8% increase in sales to $2.01 billion, while its filmed entertainment division saw a 67% increase to $1.08 million, primarily due to the release of “Gladiator II” and “Sonic the Hedgehog 3.”
Revenue from TV-media dropped 4% to $4.98 billion.
During that time, the number of members to the streaming service Paramount+ increased by 5.6 million, reaching 77.5 million. The average revenue per user increased by 1%, while the streaming business’s revenue increased by 16%.
Direct-to-consumer advertising income increased by 9% to $574 million, while subscription revenue increased by 7% to $1.44 billion.
Due to fewer athletic events and a downturn in the linear-TV ad market, the company’s TV-media segment—which includes CBS, MTV, BET, Paramount International, and Nickelodeon—saw a 4% reduction in ad income to $2.2 billion.
In the meanwhile, the business stated that it still plans to complete its merger with David Ellison’s studio, Skydance, in the first half of 2025.
The transaction has been complex because Paramount is attempting to resolve a $20 billion lawsuit that President Donald Trump filed, which the business fears could impede the deal’s regulatory approval. Trump has charged that the company’s main news program, “60 Minutes,” manipulated an interview with Democratic presidential candidate Kamala Harris during the previous election.
The merger will begin with Skydance purchasing National Amusements, the business owned by Shari Redstone that owns Paramount. After that, Paramount and Skydance will combine.
With numerous other parties bidding and negotiating with Redstone and Paramount for almost a year, the transaction has been drawn out and complex.
Ellison, the son of Larry Ellison, the founder of Oracle Corp. (ORCL), is the owner of Skydance, an independent production business. Previously, Skydance and Paramount collaborated on other films, such as “Top Gun: Maverick” and “Mission: Impossible – Dead Reckoning.”
