Paramount Quarterly Profit Falls Amid Bruising Merger Battle

Paramount Skydance must hold until March to take sides its projected $111-billion acquisition of Warner Bros. Discovery — a blockbuster woody that would reshape Hollywood by uniting 2 storied studios.

On Tuesday, U.S. District Judge Araceli Martínez-Olguín scheduled a March 2 proceedings to determine nan merits of an antitrust situation brought by 12 authorities attorneys general, led by California Atty. Gen. Rob Bonta. The states are teaming up to effort to derail Paramount’s merger, and person snared preliminary victories — prompting a concession from Paramount to put nan merger connected clasp until aft nan trial.

Paramount had asked for a Nov. 4 proceedings date.

Tech scion David Ellison wants to adhd HBO, CNN, HGTV, Food Network and nan Warner Bros. workplace to his smaller unchangeable of Paramount properties. The proceedings will span 12 days and reason March 19, nan judge wrote successful her order.

“We will proceed to vigorously take sides nan transaction and stay committed to closing arsenic soon arsenic imaginable truthful its benefits for nan imaginative organization and consumers tin beryllium realized,” Paramount said successful a statement.

The Writers Guild of America has separately sued to artifact nan merger.

Friday marks nan one-year anniversary of Ellison’s acquisition of Paramount.

“Looking backmost connected nan past 12 months, I’m incredibly proud of really our squad has turned those priorities into measurable progress, reflecting their talent, difficult work, and dedication,” Ellison wrote successful a Tuesday missive to shareholders arsenic nan institution released its second-quarter earnings.

Results were mixed.

Revenue inched up 1% to $6.91 cardinal compared to nan year-ago period, erstwhile Paramount was controlled by media heiress Shari Redstone.

The company’s studios and streaming divisions turned successful stronger performances but costs, including $153 cardinal successful merger-related expenses, weighed connected nan firm entity.

Profit declined 28% to $41 million, aliases 4 cents a share, compared to $57 cardinal successful nan year-earlier period.

Paramount said it now has 81.6 cardinal streaming customers, an summation of 2 cardinal from nan first quarter.

Streaming operations produced $2.5 cardinal successful revenue, a 9% boost from nan aforesaid 4th a twelvemonth ago. Paramount+, which boasts nan Taylor Sheridan-produced “Landman” and “Dutton Ranch,” besides televised President Trump’s day extravaganza, nan UFC Freedom 250 fights successful June from nan White House lawn.

Coverage of nan FIFA World Cup successful immoderate Latin American countries assisted nan streaming results. (Fox and Telemundo broadcast nan highly rated shot matches successful nan U.S.)

Studios gross accrued 16% to $1.3 billion, boosted by Paramount’s tv studios and its licensing deals arsenic good arsenic nan expertise to consolidate gross from Skydance properties. During nan quarter, nan Melrose Avenue movie workplace released “Scary Movie,” which brought successful $231 cardinal successful world summons sales, surpassing expectations.

Television media, which includes nan CBS network, TV stations and nan company’s struggling cablegram channels, declined 9% to $3.1 billion. Advertising gross fell 14% and nan institution felt nan nonaccomplishment of South American tv operations, Telefe and Chilevision, which it divested aft nan Ellison takeover.

The institution gross during nan existent 4th should travel successful astir $7 billion. It besides released its full-year guidance, saying it expects $30 cardinal successful revenue, up 4% complete 2025.

Paramount released nan net aft markets closed Tuesday. During regular trading, shares gained astir 2% to adjacent astatine $8.38.