Paramount Posts Q2 Streaming Gain, WBD Merger Awaits Trial
Get the Culture newsletter
Daily culture — film, music, books, the trends and ideas worth your attention. Free.
- Paramount+ added ~2 million subscribers in Q2 to reach 81.6 million worldwide, posting its best retention quarter ever powered by Dutton Ranch, UFC, and the FIFA World Cup across six Latin American countries.
- Paramount's DTC revenue rose 9% year-over-year to $2.5 billion, ad revenue jumped 30%, and DTC profit climbed 44% to $366 million — though total revenue was flat at ~$6.9 billion and net profit dipped to $41M from $57M.
- A federal judge set a March trial date for state attorneys general's antitrust suit challenging the $110 billion Paramount-Warner Bros. Discovery merger, halting a deal CEO David Ellison had repeatedly said he expected to close in the third quarter.
- Ellison told shareholders the company "fully expects" the WBD transaction to close, noting regulatory bodies in 65 jurisdictions — including the EU, China, Australia, and the U.S. — have already cleared it.
- Ellison argued the merged company would account for just 13.4% of total U.S. TV and streaming viewing time and 18% of the domestic box office over the past 12 months, framing it as a competitor against Netflix, Amazon, and Apple.
- Paramount raised its full-year 2026 adjusted EBITDA guidance to $3.8–$3.9 billion and bumped expected cost savings to over $2.7 billion, above its prior projection, while Studios revenue still grew 16% on third-party deliveries.
- TKO CEO Ari Emanuel has publicly defended the merger in recent days, though the source notes the creative community has come out against the deal.
Why it matters: Paramount already secured clearance from 65 jurisdictions including China and the EU, yet a single state-led antitrust suit has pushed the WBD deal Ellison expected to close this quarter — keeping $110B in promised synergies on hold. With analysts noting the "merger pause shifts Wall Street focus to standalone execution" and PSKY shares "pummeled" by delays, the March trial date is now the binding constraint on the entire combination.
