Paramount Reports Q1 Profit Growth; Warner Bros. Acquisition Advances

Paramount Skydance Chairman David Ellison defended his commitment to release 30 movies a year once his media company acquires Warner Bros. Discovery, stating during a Monday call with analysts that the target was achievable because his management team would maintain current levels of production. "The two companies are actually making 30 films to date," Ellison said.

He added, "We really view our pending acquisition of Warner Bros. " Paramount has doubled its film release capacity to 15 films in 2026, matching the 15 theatrical releases planned by Warner Bros. that year.

The company is on track to finalize its Warner Bros. Discovery takeover by the end of September 2026, with the acquisition deal valued at $111 billion. The combined company would include programming such as Harry Potter, Game of Thrones, and Euphoria, along with Taylor Sheridan-produced franchises including Yellowstone and Landman, which stars Billy Bob Thornton, Ali Larter, Sam Elliott, and Demi Moore.

The combined entity would own TV networks including CBS, CNN, Comedy Central, Food Network, and HGTV. CBS has 13 of the broadcast industry's top 20 primetime shows, including 60 Minutes, Marshals, and Tracker. The proposed merger would result in $79 billion in debt for the combined company.

Paramount lined up banks and institutional investors to provide bridge financing during the January-March 2026 quarter. "We're pleased with the momentum and will continue to take the necessary steps to bring this deal to completion," Ellison told analysts. Warner Bros.

Discovery stockholders voted in favor of the deal late last month, with the deal set to pay $31 per share to Warner Bros. Discovery investors. S. and abroad for the deal, and the regulatory approval process is underway.

U.S. media companies. Ellison's company is expecting $24 billion from three Middle Eastern royal families, which would represent about 49% of equity in the combined company.

Signers of the open letter include Bryan Cranston, Connie Britton, Kristen Stewart, Jonathan Glazer, and Jane Fonda. S.

Film studios to just four. A small group of consumers sued late last week to block Paramount Skydance's acquisition of Warner Bros. Discovery and unwind Skydance Media's takeover of Paramount, which occurred in August 2025.

The lawsuit alleges both deals reduce marketplace competition. 3 billion compared to the first quarter of 2025. 1 billion.

7 billion in the year-earlier period. The service added 700,000 subscribers in the quarter, bringing the total to nearly 80 million. The combined Paramount+ and Warner's HBO Max streaming service would have more than 200 million subscribers.

Scream 7 was released in late February 2026 and has topped $200 million in global ticket sales. 7 billion.

8 billion in adjusted EBITDA for 2026. 5 billion in cost cuts by the end of 2026 and reduce expenses by $3 billion in 2027. 5 billion in debt.

8 billion termination fee, which Warner Bros. Discovery had agreed to pay under a previous deal to sell the company to Netflix. 13.

In other earnings news, Reddit reported first-quarter 2026 earnings and revenue that exceeded Wall Street expectations, with a 69% jump in revenue for the period. Big Oil companies reported earnings boosted by soaring oil and gas prices in the first quarter of 2026, though they have no plans to increase production despite higher prices.

Exxon's first-quarter 2026 adjusted earnings exceeded analyst estimates due to higher oil prices offsetting lower production in the Middle East and Kazakhstan.

Chevron reported a 4% rise in upstream results for the first quarter of 2026, beating analyst expectations. Westpac’s first-half profit missed expectations. Westpac CEO Anthony Miller flagged worries about the impact of the Middle East war on customers.