Paramount Skydance Corporation reported its first results since the Skydance–Paramount merger and the stock rallied after management laid out a bigger streaming-and-studios investment plan and raised its cost‑savings target. Shares were up ~5.5% today as CEO David Ellison emphasized a tech‑forward overhaul, a fatter content slate, and a sharper path to profitability. [1]
Quick take (today)
- Shares rise after earnings: PSKY climbed as the company lifted annual efficiency goals to at least $3B and detailed >$1.5B in incremental programming spend for 2026 across streaming and film. [2]
- Paramount+ price hike coming: Paramount+ Essential to $8.99 and Premium (with Showtime) to $13.99 per month in the U.S. starting January 15, 2026, framed as funding a stronger slate and product. [3]
- Q3 by the numbers:Revenue ~$6.7B; net loss ~$257M; Paramount+ +1.4M subs to 79.1M; DTC (streaming) revenue +17% YoY; TV Media declined 12%. [4]
- Sports & franchises locked in: Seven‑year UFC U.S. rights beginning 2026 (widely reported at $7.7B), with Latin America & Australia added in an October expansion; five‑year South Park extension and library rights for Paramount+. [5]
- Workforce reshaping: ~600 employees took severance amid a return‑to‑office policy; additional cuts tied to asset sales in Argentina and Chile. [6]
- Analyst buzz: Benchmark raised its PSKY price target to $19 on guidance and execution. [7]
What happened on November 11, 2025
Stock reaction & strategy. Investors bid PSKY higher after management raised its savings target to $3B, laid out >$1.5B in incremental 2026 programming investments, and reiterated a push to unify streaming platforms and ramp to ~15 theatrical releases in 2026. Reuters also flagged a near‑term $500M restructuring charge in Q4 and $800M of one‑time 2026 investments to fund the transition. [8]
Price increase for Paramount+. A post‑merger U.S. price rise hits Jan. 15, 2026: Essential +$1 to $8.99, Premium (with Showtime) to $13.99, alongside tighter promos and no free trials—an ARPU lever paired with a bigger slate and platform rebuild. [9]
Workforce and realignment. Beyond earlier layoffs, about 600 staffers opted for severance rather than the expanded RTO policy; divestitures in Argentina (Telefe) and Chile (Chilevisión) are expected to reduce headcount by ~1,600 more as international TV operations are streamlined. [10]
Q3 2025: key results at a glance
- Revenue: ~$6.7B (missed Street).
- Net loss: ~$257M.
- Streaming: +1.4M net adds; 79.1M total subs; DTC revenue +17% YoY.
- TV Media: revenue −12% on cord‑cutting and ad softness.
- Filmed Entertainment: revenue +30% (Skydance consolidation), though segment swung to a small loss.
- Outlook & charges: Q4 restructuring charge ~$500M; 2026 revenue ~$30B target with higher content and tech investments. [11]
Note: Paramount released results and a shareholder letter on Nov. 10, 2025 via its investor channels. [12]
The growth bets driving the narrative
Live sports as a tentpole. Paramount+ becomes the exclusive U.S. home of UFC events starting in 2026 under a seven‑year deal broadly reported at $7.7B, with October’s expansion adding Latin America and Australia from 2026. Expect 13 numbered events and ~30 Fight Nights each year on Paramount+, with select simulcasts on CBS. [13]
High‑value franchises & talent. Management has moved quickly on IP and creators, including a five‑year ‘South Park’ agreement that brings new seasons and library rights to Paramount+ (widely pegged at $1.25–$1.5B), a Timothée Chalamet–James Mangold heist feature (High Side) acquired day‑one of the merger, and a studio deal to adapt Activision’s ‘Call of Duty’ for theaters. [14]
Platform & tech integration. Paramount plans to unify the back‑end across Paramount+, Pluto TV and BET+ and migrate to a common infrastructure by mid‑2026, aiming for faster product velocity, shared identity, and better recommendations. The price move in early 2026 is positioned as funding content and the tech rebuild. [15]
Cost discipline & workforce update
Paramount Skydance has lifted its savings target to ≥$3B and is consolidating international TV operations. In addition to the ~1,000 layoffs completed in October and ~600 voluntary exits, the sale of Telefe and the planned sale of Chilevisión are expected to reduce headcount by ~1,600. Management also highlighted one‑time transformation costs (Q4 restructuring ~$500M; 2026 investments ~$800M). [16]
Deal watch: Warner Bros. Discovery
Ellison declined to comment on WBD speculation during earnings Q&A, but coverage in recent weeks shows ongoing industry chess moves. Reuters previously reported WBD’s board rejected a nearly $24/share approach from Paramount Skydance; rivals are also circling, with Comcast exploring a bid for WBD assets and Netflix tapping advisers to evaluate a potential offer. Any future move would face regulatory and integration complexity. [17]
How the market is thinking about PSKY right now
- Valuation context: Reuters noted PSKY trades at a lower forward P/E than Disney and Netflix after a ~46% YTD rise—an execution‑dependent re‑rating story tied to streaming profitability and slate strength. [18]
- Street reaction:Benchmark lifted its target to $19, citing clearer guidance and a credible, funded plan. [19]
What to watch next
- Paramount+ price change (Jan. 15, 2026) — ARPU impact vs. churn. [20]
- UFC onboarding (2026) — subscriber engagement and ad momentum as rights transition. [21]
- Backend unification (mid‑2026) — product cadence and cost benefits as platforms converge. [22]
- Theatrical ramp to ~15 films in 2026 — slate performance and franchise discipline. [23]
- M&A signals around WBD — whether talks formalize or the company stays “build over buy.” [24]
Disclosure: This article is for information only and is not investment advice. Figures and developments reflect reporting available as of November 11, 2025; see linked sources for updates and full context.
Sources: Reuters on today’s share move and strategy; company earnings release; TheWrap for Q3 metrics and tech roadmap; Broadband TV News on price changes; Reuters and PR Newswire on UFC rights; LA Times/Reuters on South Park; ScreenDaily/Deadline on High Side and Call of Duty. [25]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.broadbandtvnews.com, 4. www.thewrap.com, 5. www.reuters.com, 6. www.businessinsider.com, 7. www.investing.com, 8. www.reuters.com, 9. www.broadbandtvnews.com, 10. www.businessinsider.com, 11. www.thewrap.com, 12. www.prnewswire.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.thewrap.com, 16. www.reuters.com, 17. deadline.com, 18. www.reuters.com, 19. www.investing.com, 20. www.broadbandtvnews.com, 21. www.reuters.com, 22. www.thewrap.com, 23. www.reuters.com, 24. deadline.com, 25. www.reuters.com
