Paramount’s Shocking TV Woes Dragging It Down; Can The Skydance Deal Change Everything?

Paramount Global’s latest earnings report presented a mixed picture, with strong growth in its streaming and film segments overshadowed by challenges in traditional TV media. The company’s stock declined after it posted a surprise fourth-quarter loss, driven by weakening TV ad revenue despite impressive performance in its direct-to consumer (D2C) and filmed entertainment businesses. Revenue climbed 5% year-over-year to $7.98 billion, but Paramount reported an adjusted loss of 11 cents per share, missing FactSet consensus estimates that had projected a profit of 13 cents per share on revenue of $8.10 billion. The primary culprit was the continued slump in the TV media division, where revenue dropped 4% to $4.98 billion as advertisers pulled back spending amid economic uncertainty. CBS and Nickelodeon, key assets in this segment, suffered from this industry-wide contraction in linear television.