finance
Paramount Reports Q1 Profit Growth; Warner Bros. Acquisition Advances
Paramount reported stronger-than-expected first-quarter 2026 earnings while advancing its $111 billion acquisition of Warner Bros. Discovery. The company defended plans for 30 annual film releases and highlighted streaming growth. Other firms including Reddit and Big Oil companies also posted robust quarterly results.
Los Angeles TimesAudio version
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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. U.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.
