Paramount Q2 Streaming Surges as Ellison Backs WBD Close
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- Paramount+ added ~2 million subscribers in Q2 to reach 81.6 million worldwide, with the company calling it the 'best quarter for retention' in the streamer's history, driven by Dutton Ranch, UFC, and FIFA World Cup coverage in six Latin American countries.
- DTC revenue rose 9% year-over-year to $2.5 billion, Paramount+ ad revenue jumped 30%, and DTC profit climbed 44% to $366 million — figures the company said came with its lowest quarterly churn ever.
- Linear TV Media revenue declined 9% to $3.1 billion and ad revenue dropped 14% (with ~8 points of that headwind from lapping NCAA Final Four/Championship games), while Studios revenue grew 16% to $1.3 billion on third-party deliveries and Skydance licensing consolidation.
- Paramount raised its 2026 adjusted EBITDA outlook to $3.8–$3.9 billion and now expects over $2.7 billion in cost savings by year-end, above its prior projection; total revenue was flat YoY at ~$6.9 billion.
- A federal judge set a March trial date for the state attorneys general antitrust suit against the Paramount–WBD merger, rejecting Paramount's request for November and the AGs' request for February; Paramount had repeatedly anticipated a Q3 close.
- David Ellison said Paramount 'fully expects' the $110 billion WBD transaction to close, citing clearances from 65 jurisdictions and arguing the combined company would hold just 13.4% of U.S. TV/streaming viewing time against 'tech giants such as Netflix, Amazon, Apple.'
- PSKY shares reversed an initial post-earnings gain and were down ~1% in late trading, with the stock pressured by merger delays and a ticking fee of 25 cents per WBD share per quarter kicking in Oct. 1 if the deal hasn't closed.
Why it matters: Paramount just improved its 2026 EBITDA guidance and hit record streaming metrics, yet the stock still sold off because the WBD timeline is slipping into 2026 with an antitrust trial now on the docket. Ellison is publicly betting the company — shareholders bear both the $110 billion price tag and the 25-cent-per-share-per-quarter ticking fee that starts Oct. 1, while the creative community lines up against the deal and regulators want their day in court.
