Paramount International expects to finalize its sale to David Ellison’s Skydance Media by summer season, the corporate mentioned Wednesday, barely adjusting its timeline after encountering static on the Federal Communications Fee.
The corporate had hoped to finish its sale by mid-April.
The replace got here as Paramount reported fourth-quarter earnings, which missed analysts’ expectations. Paramount posted a lack of $224 million for the quarter, in contrast with its $514 million in revenue from the identical interval a 12 months earlier.
The earnings report comes at a turbulent time for the corporate. In current days, Paramount agreed to enter a mediation course of to settle a $20-billion lawsuit from President Trump over edits to a CBS “60 Minutes” interview with then-Vice President Kamala Harris.
Trump amended his lawsuit in Texas earlier this month, alleging the edits to the “60 Minutes” interview amounted to client fraud.
Paramount’s controlling shareholder Shari Redstone has been pushing for a truce, hoping a settlement will assist pave the best way for the sale of her household’s pursuits to the Ellison clan.
Ellison and his crew are also desirous to take the keys to Paramount, which incorporates CBS, Paramount Footage, Nickelodeon, Comedy Central, BET and the Paramount+ streaming service. At present, a trio of Paramount executives run the corporate.
The “60 Minutes” interview turned an unlikely sticking level.
Nonetheless, the footage shined a harsh gentle on Harris’ efficiency. In a query concerning the Biden administration’s dealing with of the Israel-Hamas struggle, Harris gave a jumbled reply, which was clipped to its most cogent sentence for the printed.
Along with the “60 Minutes” interview controversy, critics have centered on Chinese language media firm Tencent’s minority stake in Skydance as an impediment to approval. Some conservatives and lawmakers have urged that the FCC ought to look intently at Tencent‘s involvement.
Paramount’s fourth-quarter earnings included a $286-million loss in its streaming division, which incorporates Paramount+ and Pluto TV. The deficit marked an enchancment over the fourth quarter of 2023 when Paramount misplaced $490 million pursuing its streaming ambitions.
Paramount+ added 5.6 million subscribers within the quarter — its greatest efficiency in two years — to succeed in a complete of 77.5 million.The corporate mentioned its streaming unit ought to obtain home annual profitability this 12 months. Full-year streaming income grew 8% in comparison with 2023.
General, Paramount reported quarterly income of $7.98 billion, falling in need of analysts’ expectations.
Tv income dipped 4% to $4.98 billion, reflecting decrease promoting gross sales and fewer sporting occasions on CBS.
Affiliate charges and subscription income declined 7% as extra pay-TV prospects sliced the twine. Nonetheless, tv licensing and different income inched up 3% to $911 million for the quarter.
At Paramount Footage, filmed leisure posted an adjusted working lack of $42 million. It managed to develop income to $1 billion with releases together with “Gladiator II” and “Sonic the Hedgehog.” That was up from $647 million generated within the fourth quarter of 2023.
Paramount shares fell about 1.5% in after-hours buying and selling.