Paramount Skydance pledges more than $1.5 billion for programming, shares jump
Paramount Skydance said it will invest more than $1.5 billion in incremental programming next year as it seeks to expand streaming and revive its film studio, a move that sent shares higher as investors priced in faster growth and cost synergies. The company also raised its cost cutting target to at least $3 billion and projected $30 billion in revenue by 2026, signaling an aggressive push to reshape its media footprint and pursue larger acquisitions.
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Paramount Skydance reported its first quarterly results since completing an $8.4 billion merger and announced it will invest more than $1.5 billion in programming next year to accelerate growth in streaming and revitalize its film business. The disclosure coincided with a rise in the company stock as investors reacted to the combination of top line guidance, cost cutting and potential scale gains from further consolidation.
The company said streaming revenue rose 17 percent year over year, driven largely by growth at Paramount+. Television revenue declined 12 percent from the same period a year earlier as advertising receipts weakened. The film group produced the strongest headline gain, with revenue up 30 percent, reflecting the consolidation of Skydance into the combined entity. Paramount Skydance told investors it sees total revenue reaching $30 billion in 2026 as streaming becomes more profitable and operations are run more efficiently.
Management also raised its cost reduction target to at least $3 billion, up from an initial forecast of $2 billion in savings. That increase signals a more aggressive efficiency push, which will be watched closely by analysts who have flagged integration execution and the scale required to justify heavy upfront programming spend. The planned programming outlay is aimed at bolstering content pipelines as streaming competition intensifies and theatrical windows continue to evolve.
Beyond internal restructuring, Paramount Skydance has been active on the acquisition front, submitting multiple bids to acquire Warner Bros Discovery. The company sought control of WBD’s film and television studios, the HBO Max streaming platform and cable holdings that include CNN and TNT. Such a transaction, if pursued to completion, would consolidate a large swath of premium content and distribution, but would also pose significant financing and regulatory hurdles given the size and scope of the assets involved.
The mixed segment performance underscores the shifting economics of modern media. Streaming growth has improved revenue visibility and margin potential, yet the decline in traditional television advertising remains a drag on legacy earnings. The film business benefited from consolidation accounting this quarter, but sustaining that momentum will depend on new releases and the success of investments in slate development.
For investors and industry players the immediate takeaway is a bet on scale. The incremental programming dollars and steeper cost targets are intended to create a leaner, larger marketplace presence capable of competing with entrenched streaming incumbents. The $30 billion revenue goal for 2026 encapsulates that ambition, but it also hinges on successfully integrating assets, translating content spending into subscriber gains and stabilizing advertising markets.
Long term, the moves reflect a broader trend toward consolidation in media as companies pursue vertical control of content and distribution to drive margins. The path forward will be measured by execution on cost cuts, the returns on the programming investment and how regulators and lenders respond to any major acquisition attempts.
