Paramount Global said it expects the merger with Skydance Media to close in the first half of 2025 despite chatter around the deal, which requires a greenlight from the FCC.
“Completion of the Skydance transactions is subject to regulatory approvals and customary closing conditions. The transactions are anticipated to close in the first half of 2025. Until then, Paramount continues to operate in the normal course of business,” the company said in its first-quarter earnings release with solid numbers topping Wall Street forecasts on most metrics.
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Paramount has, in fact, been anticipating a first half close since the multi-part transaction was announced last summer — before President Donald Trump sued CBS and 60 Minutes, and before the FCC under chair Brendan Carr began reviewing a complaint against the network and newsmagazine by a right-wing group. Longtime 60 Minutes executive producer Bill Owens quit last month citing corporate editorial interference. Carr stressed this week that the lawsuit is on a completely different track from the merger.
The company saw Q1 revenue dip 6% last quarter to $7.2 billion, but it was up 2% excluding a tough comparison from Super Bowl LVIII in Q1 the year-earlier. Super Bowl comps colored advertising at linear and streaming but sports ads, driven football and March Madness had a strong first quarter at Par, as they did at Disney yesterday and Warner Bros. Discovery earlier today.
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Paramount swung to a $152 million net profit from a loss of $554 million in a 2024 quarter hit by one-time programming write-downs and restructuring charges. Adjusted EPS was 29 cents a share.
Streaming revenue rose 9% topping $2 billion with Paramount+ driving a 16% jump in subscription revenue. Ad sales fell 9% — 8% of that fallout from Super Bowl comps. Losses narrowed sharply to $109 million from $286 million and Paramount affirmed plans for DTC to reach domestic profitability this year – a milestone Wall Street’s been waiting for.
Paramount+ added 1.5 million net new subscribers, ending March with 79 million. Series, post-theatrical releases, CBS primetime and sports drove signups, Par said. Standouts included Landman, 1923, MobLand and Yellowjackets.
Pluto TV delivered its highest consumption by total hours both domestically and globally.
At the TV Media division, CBS is poised to be the most-watched network in primetime for the 17th consecutive season with help from Tracker and Matlock. Ad revenue was down 21% but flat ex-Super Bowl comps. Sports programming grabbed audiences led by the AFC Championship Game in January that averaged 57.4 million viewers, the all-time record for the AFC and the largest overall conference championship in 15 years.
Affiliate and subscription revenue fell 9% on linear declines and the impact of recent renewals, presumably at lower rates. TV Media operating profit fell 36% to $922 million on revenue of $4.54 billion.
Filmed entertainment revenue rose 4%, theatrical eased 3%. Q1 benefited from the carryover of Sonic the Hedgehog 3 and Gladiator II from Q4 of 2024 and the late first-quarter 2025 release of Novocaine. The year-earlier March quarter had Bob Marley: One Love, the Mean Girls reboot and The Beekeeper.
Sonic helped swing division profits to $20 million from a $3 million loss.
“We are very pleased with our performance in the quarter driven by a powerful content slate and focused execution,” said co-CEOs George Cheeks, Chris McCarthy and Brian Robbins. “These impressive results were driven by our talented teams and creative partners, and we are grateful for their contributions.”
The trio will host a call with analysts at 4:30 ET.