Paramount Skydance (PSKY) Stock: Warner Bros. Bid, Q3 Earnings and What December 2025 Means for Investors

Paramount Skydance (PSKY) stock price today

As of the morning of December 9, 2025, Paramount Skydance Corporation (NASDAQ: PSKY) is trading around $14.6 per share, after a sharp rebound driven by the company’s hostile $108.4 billion bid for Warner Bros. Discovery (WBD). Recent quotes show a day range of roughly $13.53–$14.76, with a 52‑week range of $9.95–$20.86 and a market cap near $16 billion. ^[1]

Over the past year, PSKY has delivered roughly 20–30% share price appreciation, but that gain hides big swings. The stock sold off hard last week when Netflix appeared to “win” Warner Bros., then surged again once Paramount Skydance came back with an aggressive counter‑offer. ^[2]

For investors, PSKY is trading very close to where Wall Street thinks it should be: most consensus 12‑month price targets cluster in the $13.9–$14.7 range, implying only modest upside or even slight downside from today’s level. ^[3]

From Paramount Global to Paramount Skydance: the new entity behind PSKY

PSKY is a very new stock with a very old studio behind it.

On August 7, 2025, Skydance Media completed its long‑negotiated merger with Paramount Global, creating the combined Paramount Skydance Corporation—often branded “Paramount, a Skydance Corporation.” ^[4]
As part of the deal, Paramount Global’s Class A and B shares were converted into new Paramount Skydance Class B shares (PSKY). Non‑electing Class B holders received 1 PSKY share for each old Paramount Class B share; non‑electing Class A holders got 1.5333 PSKY shares per old Class A share. Trading in the old PARA/PARAA tickers ceased on August 7. ^[5]
David Ellison, Skydance’s founder, is now Chairman and CEO, while former NBCUniversal chief Jeff Shell serves as President. The Ellison family and RedBird Capital are key financial backers. ^[6]

The strategic pitch: combine Paramount’s legacy TV and film assets (CBS, Paramount Pictures, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+ and Pluto TV) with Skydance’s production engine and a more tech‑driven culture to build a “next‑generation media company.” ^[7]

Q3 2025: first full quarter post‑merger

Paramount Skydance’s third quarter 2025 results, reported on November 10, were the company’s first full quarter since the merger closed and gave investors their first real look at the combined business. ^[8]

Key takeaways from Q3 (on a pro forma combined basis): ^[9]

Revenue:
- Total revenue was $6.7 billion, essentially flat year‑over‑year on a pro forma basis and slightly below Wall Street expectations.
Profitability:
- The company reported a net loss of about $257 million, or roughly –$0.37 per share, weighed down by merger and restructuring charges.
- However, adjusted OIBDA (a cash‑flow proxy) rose around 11% to roughly $950 million, indicating early cost discipline even as top‑line growth stalled.
Streaming (Direct‑to‑Consumer):
- DTC revenue jumped about 17% to $2.17 billion.
- Paramount+ revenue grew roughly 24%, and the service reached 79.1 million subscribers, adding about 1.4 million net subs in the quarter.
- Management said the streaming segment generated around $340 million in adjusted profit, up sharply from roughly $49 million a year earlier.
TV Media:
- Traditional TV (broadcast + cable networks) remains the drag: TV Media revenue fell about 12% to $3.8 billion, as advertising declined double‑digits and affiliate fees slipped around 7% amid cord‑cutting.
Filmed Entertainment:
- Film revenue rose (boosted by the consolidation of Skydance revenue) but the studio still posted a small loss after an underperforming 2025 slate.

Management used the call and shareholder letter to send three big messages to investors: ^[10]

Streaming is the “North Star.” Paramount Skydance reiterated that its direct‑to‑consumer segment is its core growth engine and said it expects full‑year 2025 streaming profitability, with even better margins in 2026.
Cost‑cutting is accelerating. The company raised its synergy / savings target from $2 billion to $3 billion by 2027, tied to layoffs (about 1,000 already announced plus more via divestitures) and a broad efficiency program.
Content and tech spending are ramping. Starting in 2026, Paramount plans over $1.5 billion of incremental programming investment, including UFC rights, more Paramount+ originals, additional film production (targeting at least 15 theatrical releases per year) and third‑party library deals. It is also consolidating three different streaming tech stacks and rolling out Oracle Fusion enterprise software across the company.

Guidance from management and external analysts points to: ^[11]

Q4 2025 revenue of $8.1–$8.3 billion (1–4% growth year‑over‑year).
Full‑year 2025 revenue approaching $29 billion with adjusted OIBDA around $3 billion (roughly a 10% margin).
A medium‑term target of around $30 billion in revenue in 2026, driven primarily by streaming and content monetization.

The balance sheet is still a concern: Paramount ended Q3 with roughly $3.3 billion in cash and $13.6 billion of debt, leaving limited room for major missteps. ^[12]

The $108.4 billion swing at Warner Bros. Discovery

The biggest new catalyst for PSKY is Paramount’s decision to go hostile for Warner Bros. Discovery.

How the Netflix–Warner deal set the stage

On December 5, 2025, Warner Bros. Discovery (WBD) announced that it had entered exclusive negotiations with Netflix, which agreed to buy WBD’s studio and streaming assets (including HBO, HBO Max and Warner Bros. Pictures) in a deal valued at about $82.7 billion in enterprise value, or $27.75 per share in a mix of cash and Netflix stock. ^[13]

The Netflix proposal specifically excluded WBD’s linear networks such as CNN and Discovery Channel, leaving those to be spun off separately. ^[14]

Paramount Skydance’s counter‑attack

After months of what it calls ignored or rejected overtures, Paramount Skydance responded on December 8 by going straight to WBD’s shareholders with a hostile, all‑cash tender offer: ^[15]

Price:$30 per WBD share in cash, valuing the company at roughly $108.4 billion.
Structure: Paramount Skydance says the deal would be funded with about $41 billion of equity backstopped by the Ellison family, RedBird Capital, Middle Eastern sovereign funds and Jared Kushner’s Affinity Partners, plus around $54 billion in committed debt financing from major banks and Apollo Global Management. ^[16]
Scope: Unlike Netflix’s bid, Paramount’s offer aims to buy all of Warner Bros. Discovery, including CNN and other cable networks. ^[17]

Paramount argues that: ^[18]

Its proposal offers about $18 billion more cash to WBD shareholders than Netflix’s.
An all‑cash bid avoids uncertainty around Netflix’s future stock price.
Its structure and “vertical” combination (studio + broadcast + cable + streaming) could reach regulatory approval faster than Netflix’s deal, which critics say could give one streamer near‑dominant market share.

WBD’s board has acknowledged receiving the proposal and says it will review the offer under its fiduciary duties, but has not withdrawn support for Netflix’s deal. ^[19]

The political and regulatory storm

The takeover fight is deeply entangled with U.S. politics and antitrust:

President Donald Trump has publicly warned that the Netflix–Warner deal “could be a problem” because of its potential market share and has signaled he expects to be involved in the decision, raising questions about politicization of antitrust enforcement. ^[20]
Senators from both parties, including Elizabeth Warren and Mike Lee, have called the proposed Netflix–Warner merger an antitrust red flag and a potential “anti‑monopoly nightmare” for consumers and workers. ^[21]
Paramount Skydance’s bid draws its own scrutiny because of foreign sovereign wealth involvement and the potential impact of combining CNN with CBS News under a single corporate owner. ^[22]

From a PSKY shareholder’s perspective, this is a high‑stakes, high‑debt roll of the dice. If the deal closes, Paramount Skydance would instantly become one of the most powerful content owners on earth, but with a balance sheet levered to the hilt and huge integration challenges. If it fails, Paramount still faces breakup‑fee dynamics and reputational questions about strategy, though it would at least avoid taking on Warner’s debt. ^[23]

Market reaction: PSKY volatility spikes

The Warner battle has turned PSKY into a trading stock as much as an investment story:

On December 5, when Netflix’s agreement with WBD was announced and Paramount appeared to be sidelined, PSKY dropped nearly 10%, and headlines described it as “nosediving” more than 16% over several days. ^[24]
On December 8, after Paramount Skydance unveiled its hostile all‑cash tender, PSKY rallied roughly 7–10% intraday and finished sharply higher as traders bet on the company’s renewed relevance in the streaming arms race. ^[25]
Warner Bros. Discovery shares have also risen on hopes of a bidding war, while Netflix stock has dipped about 3–4% as investors fret over overpaying and regulatory risk. ^[26]

In other words: PSKY has become extremely headline‑sensitive, and short‑term price moves are being driven more by deal odds than by near‑term fundamentals.

Analyst ratings and price targets for PSKY stock

Across the major data providers, analyst views on PSKY are mixed and cautious:

StockAnalysis aggregates 11 analysts with an average rating of “Sell” and a 12‑month target around $13.9, implying slight downside from the current price. ^[27]
MarketBeat shows 13 analysts with a consensus target of $13.91, also indicating about 4–5% downside from roughly $14.6. ^[28]
Zacks reports an average target of about $14.37 from 19 analysts, with estimates ranging from $8 to the high teens. ^[29]
TipRanks lists a $14.36 average target, with a high of $19 and low of $8, based on 14 recent Wall Street price targets. ^[30]
TradingView pegs the consensus around $14.2–$14.3, with the same $8–$19 range. ^[31]
eToro cites an average target near $14.67. ^[32]

Taken together, these point to an “on‑the‑fence” consensus:

Analysts do not see PSKY as obviously cheap at today’s price.
The wide range of targets (roughly $8 to $19) shows big disagreement about the company’s trajectory and the outcome of the Warner gambit.

Some research notes and media commentary lean more bullish—framing Paramount Skydance as “going for the media crown” and praising its $3 billion efficiency plan—while others remain skeptical about legacy TV headwinds and leverage. ^[33]

Fundamental outlook: earnings, streaming and guidance

Beyond deal drama, the core investment case around PSKY hinges on three pillars: streaming profitability, cost savings and debt management.

Earnings trajectory and guidance

Management and external estimates currently imply: ^[34]

2025 full‑year revenue around $29 billion, with:
- TV Media still the largest revenue contributor but in secular decline.
- Direct‑to‑Consumer (Paramount+, Pluto TV, BET+) as the fastest‑growing segment, up high teens year‑over‑year.
Adjusted OIBDA near $3 billion in 2025, implying a 10% margin, with further improvement expected in 2026 as synergies ramp.
Streaming (DTC) to be profitable for the full year 2025, not just at the quarterly level, and “increasingly profitable” thereafter.
Q4 2025 guidance of $8.1–$8.3 billion in revenue and $500–$600 million in adjusted OIBDA.

Streaming strategy: price hikes, UFC and tech

To drive both top‑line growth and margins, Paramount Skydance is planning several moves: ^[35]

Paramount+ price increases in the U.S. in early 2026, with both ad‑supported and premium tiers rising and free trials being scrapped.
Execution of a seven‑year UFC rights deal, with expansion into Latin America and Australia starting in 2026—supporting both live‑sports positioning and streaming subscriber growth.
Over $1.5 billion in incremental content investment in 2026, including Paramount+ originals, third‑party library licensing and a bigger theatrical slate (~15 films per year).
Consolidation of streaming tech stacks (Paramount+, Pluto TV, BET+) and migration onto a more unified back‑end, with Oracle Fusion as the company‑wide enterprise system. The goal is better personalization, cross‑selling and ad monetization.

Balance sheet and cash flow

The bull case assumes that: ^[36]

Synergies and streaming profitability move free cash flow materially positive over the next 2–3 years.
Asset sales (like Latin American TV networks already announced) plus cost cuts help stabilize leverage.
If the Warner deal does not happen, PSKY can de‑risk gradually while still leaning into streaming and sports.

The bear case is that linear TV declines faster than expected, forcing Paramount Skydance to chase ever‑larger deals (like Warner) just to maintain scale, stretching the balance sheet to a breaking point.

Key opportunities for Paramount Skydance stock

For investors looking at PSKY after December’s fireworks, the opportunity set looks something like this:

Real streaming profitability, not just “adjusted” promises
- Paramount’s DTC segment is already posting quarterly profit and is expected to be profitable for the full year 2025—an inflection point that many media peers struggled to reach. ^[37]
$3 billion synergy plan and tech‑driven efficiency
- Management has increased its cost‑savings target to $3 billion by 2027 and is aggressively consolidating duplicative functions and technology, especially across streaming and corporate back‑office operations. ^[38]
A powerful IP and sports portfolio
- The combined Paramount–Skydance library includes Top Gun, Mission: Impossible, Star Trek, Transformers, SpongeBob, Avatar: The Last Airbender, UFC rights and NFL rights on CBS, among others, giving the company plenty of high‑value content to monetize across platforms. ^[39]
Option value on Warner Bros. Discovery
- If the hostile bid succeeds on terms that don’t completely swamp the balance sheet, Paramount Skydance would control one of the most comprehensive content portfolios in history, potentially unlocking huge synergies across studios, streaming and advertising. ^[40]

Key risks for PSKY in December 2025

There’s no free lunch here. The main downside risks are substantial:

Warner Bros. Discovery deal risk ^[41]
- The bid relies on tens of billions of new debt plus politically sensitive equity partners.
- Both the Netflix–Warner and Paramount–Warner combinations face serious antitrust scrutiny. A drawn‑out regulatory fight could distract management, delay integration and pressure PSKY’s stock.
- Break‑up fees between WBD and Netflix are enormous ($2.8–$5.8 billion depending on who walks), and while Paramount isn’t a direct party to those fees, a chaotic outcome could still weigh on sector sentiment and future deal‑making.
High leverage and interest‑rate exposure ^[42]
- With roughly $13–14 billion of existing debt, PSKY already has a meaningful leverage burden. Adding Warner’s balance sheet and new deal financing could push leverage into uncomfortable territory just as the industry remains structurally challenged.
Secular decline in linear TV ^[43]
- Q3 showed double‑digit declines in TV advertising and mid‑single‑digit drops in affiliate fees. Even with CBS performing relatively well, the cable portfolio is structurally pressured as audiences migrate to streaming.
Execution risk on cost‑cuts and tech integration ^[44]
- $3 billion of savings, multiple tech stack migrations, adoption of new Oracle systems and thousands of job cuts all have to be executed without breaking operations or harming creative output. That’s a tall order for any media company.
Competitive pressure from Netflix, Disney and others ^[45]
- Even if Paramount Skydance scales its streaming business, it’s still fighting giants with deeper pockets, larger global subscriber bases and entrenched brands.

Is Paramount Skydance (PSKY) stock a buy right now?

Paramount Skydance today is a classic high‑risk, high‑uncertainty media stock:

On the positive side, the company has:
- A clear pivot toward profitable streaming.
- An ambitious but coherent cost‑savings and tech modernization plan.
- A deep content and sports portfolio and some early signs that its merger strategy is starting to stabilize margins.
On the negative side, investors face:
- Opaque deal risk around Warner Bros. Discovery.
- High leverage at a time when legacy TV revenues are shrinking.
- A valuation that already bakes in much of the near‑term upside, given that the stock sits roughly in line with consensus price targets. ^[46]

For short‑term traders, PSKY is likely to remain extremely volatile as headlines about regulatory reactions, WBD’s board response and Netflix’s counter‑moves roll in.

For long‑term, risk‑tolerant investors, the stock represents a leveraged bet that:

Paramount Skydance can successfully turn itself into a profitable streaming‑first company, and
Either wins Warner on acceptable terms or walks away without damaging the core business.

For more conservative investors, the rational stance many analysts are taking—effectively “wait for clarity” while assigning muted upside—may be worth noting. ^[47]

Either way, PSKY has moved from being a turnaround story to the main character in the biggest media M&A drama of the decade. The next few months—particularly WBD’s formal response to Paramount’s tender and early antitrust signals—are likely to be decisive for where the stock goes next.