Skydance Posts $7 Billion Paramount Quarter in First Report Since Closing Warner Bros. Discovery Deal
Skydance on Monday reported its first quarterly results since completing its acquisition of Warner Bros. Discovery, saying the Paramount business grew revenue 5% to $7.0 billion in the third quarter, according to its shareholder letter filed with an 8-K.
The quarter's figures exclude Warner Bros. Discovery, which the company acquired on Oct. 6. Paramount Skydance earned $73 million and posted adjusted EBITDA of $1.0 billion, a 14% margin, the letter said.
The company said Paramount remains on track for the high end of its 2026 profitability outlook of $3.9 billion.
Streaming and studios
Paramount+ revenue grew 21%, its fastest quarterly growth this year, and studios revenue rose 23%. TV Media posted a 34% adjusted EBITDA margin, according to the letter.
On a pro forma basis that treats the Warner Bros. Discovery merger as if it closed on Jan. 1, 2025, direct-to-consumer revenue for the combined company grew 15% in the quarter.
Integration targets
Skydance said it is targeting at least $6 billion of annualized run-rate synergies within three years, with work underway across more than 20 workstreams. It plans to cut its net leverage ratio to 3.0 times by the end of 2029 and reach investment-grade credit metrics.
The company also plans to launch a bundled HBO Max and Paramount+ offering in early 2027.
For the fourth quarter, Skydance said it expects continued strong direct-to-consumer revenue growth, but said improved Paramount film results will be more than offset by underperformance of the Warner Bros. film slate.
By the numbers
- Paramount Skydance Q3 revenue: $7.0 billion, up 5%
- Net earnings: $73 million
- Adjusted EBITDA: $1.0 billion, 14% margin
- Paramount+ revenue growth: 21%
- Synergy target: at least $6 billion within three years
- Net leverage goal: 3.0 times by end of 2029
Sources
- Form 8-K with Exhibit 99 shareholder letter, Skydance Corp, filed Nov. 9, 2026, accession 0002041610-26-000062
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