Paramount Skydance reported a widened fourth-quarter loss, expanding to $573 million from $224 million a year earlier, despite a 2% increase in overall revenue.

The downturn was largely tied to weakness in traditional television advertising and distribution segments across its legacy media operations.

The company, owner of CBS and streaming service Paramount+, recorded a 10% drop in TV advertising revenue and a 7% decline in distribution revenue during the quarter.

Its largest division, the TV networks unit, posted a 5% revenue decline to $4.7 billion compared with nearly $4.98 billion in the prior year.

In contrast, streaming revenue rose 10% to $2.21 billion, highlighting continued growth in digital subscriptions and online engagement.

Filmed entertainment also surged 16% to nearly $1.26 billion, reflecting stronger box office and licensing performance.

The earnings release comes as Paramount intensifies efforts to acquire Warner Bros. Discovery, a move aimed at reshaping its competitive scale in the evolving media landscape.

CEO David Ellison told shareholders the company remains confident in its long-term strategy, calling the proposed deal an “accelerant” to transformation goals.

Warner Bros. Discovery is evaluating a revised bid even as it maintains an agreement involving its HBO Max platform and Warner studios with Netflix.

Looking ahead, Paramount projected a 4% revenue increase for full-year 2026 and guided first-quarter revenue between $7.15 billion and $7.35 billion, signaling cautious optimism despite ongoing market headwinds.