Paramount Skydance reported a widened loss in its fourth quarter, expanding to $573 million from $224 million in the year-earlier period, despite experiencing an overall 2% increase in revenue. This financial setback was primarily driven by downturns in its traditional television advertising and distribution revenues.

The company, which owns the CBS broadcast network and Paramount+, saw its TV advertising revenue decline by 10% and distribution revenue fall by 7% during the quarter. Concurrently, the company's largest business unit, its TV networks, reported a 5% decrease in revenue, totaling $4.7 billion compared to nearly $4.98 billion in the year-earlier period.

In contrast to its traditional media segments, Paramount's streaming and film operations demonstrated strong growth. Revenue from streaming increased by 10% to $2.21 billion, while filmed entertainment revenue rose significantly by 16% to nearly $1.26 billion. These gains highlight a shift in performance across the company's diverse portfolio.

These financial results were released amidst Paramount's intensified pursuit of an acquisition of Warner Bros. Discovery. David Ellison, Paramount’s CEO, addressed shareholders, expressing confidence in the company's strategic direction. He noted that executives "remain confident in the path we’ve set to transform this company for the future" and views an acquisition of Warner Bros. Discovery as an "accelerant" to achieving Paramount’s goals more quickly and in an economically compelling manner for its shareholders. Warner Bros. Discovery is reportedly evaluating a revamped bid from Paramount, despite having an existing agreement to sell its HBO Max streaming service and Warner studios to Netflix.

Paramount also provided forward-looking guidance, projecting a 4% uptick in revenue for the full year 2026. For the first quarter of the current year, the company guided Wall Street to revenue projections ranging from $7.15 billion to $7.35 billion, which would represent a modest decline of 1% to an increase of 2% in revenue for that specific period.