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. 1
- 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. 2
- 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%. 3
- 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+. 4
- Workforce reshaping: ~600 employees took severance amid a return‑to‑office policy; additional cuts tied to asset sales in Argentina and Chile. 5
- Analyst buzz: Benchmark raised its PSKY price target to $19 on guidance and execution. 6
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. 1
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. 2
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. 5
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. 3
Note: Paramount released results and a shareholder letter on Nov. 10, 2025 via its investor channels. 7
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. 4
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. 8
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. 3
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). 1
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. 9
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. 1
- Street reaction:Benchmark lifted its target to $19, citing clearer guidance and a credible, funded plan. 6
What to watch next
- Paramount+ price change (Jan. 15, 2026) — ARPU impact vs. churn. 2
- UFC onboarding (2026) — subscriber engagement and ad momentum as rights transition. 4
- Backend unification (mid‑2026) — product cadence and cost benefits as platforms converge. 3
- Theatrical ramp to ~15 films in 2026 — slate performance and franchise discipline. 1
- M&A signals around WBD — whether talks formalize or the company stays “build over buy.” 9
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. 1
