Research · Sep 3, 2026
[PSKY] Paramount Skydance Thesis 2026: Skydance Merger Tests Streaming and Studio Integration
Paramount Skydance Corporation (NASDAQ: PSKY; ticker change from Paramount Global PARA effective August 7, 2025 post-merger close) FY2025 (combined post-merger H2 2025) revenue ~$30-32B with adj. EPS ~$0.50-1.50 reflecting continued post-August 2025 Skydance Media merger integration + selected $2B+ expected cost synergies + selected Paramount+ ~80M+ subscriber profitability inflection (H1 2025 first profitable quarter) + selected new David Ellison CEO leadership under controlling Skydance + Larry Ellison family ~70%+ ownership. Leading global media + entertainment firm formed via August 7, 2025 merger of Paramount Global (formerly ViacomCBS; selected post-2019 Viacom + CBS recombination) + Skydance Media (selected David Ellison's Hollywood film/TV production studio). Selected post-merger ~$8B aggregate deal value (~$4.75B cash injection from Skydance + $1.5B selected Paramount stockholder cash + ~$2B debt assumption); selected merger consolidating Paramount Global ~$30B revenue + Skydance ~$1B+ revenue baseline. Headquartered in New York New York (Paramount legacy) + Los Angeles California (Skydance + Paramount Pictures); ~24,000+ employees combined globally with ~$30-32B revenue. Three reporting segments: Direct-to-Consumer ~30% revenue ($9-10B — Paramount+ ~80M+ global subscribers + Pluto TV ad-supported FAST streaming; selected post-2024 Paramount+ profitability inflection H1 2025 first profitable quarter; selected ~$300-500M FY2025 DTC profit), TV Media ~50% ($15-16B — CBS broadcast network + cable channels including Showtime + Comedy Central + MTV + Nickelodeon + BET + Paramount Network; selected post-2024 cord-cutting acceleration impacting affiliate fees + ad revenue), Filmed Entertainment ~20% ($6B — Paramount Pictures + Skydance theatrical including selected Top Gun: Maverick + Mission: Impossible + selected Skydance animated + selected post-2025 merger combined studio). August 2025 Skydance merger key economics: ~$8B aggregate deal value (~$4.75B Skydance cash injection + ~$1.5B Paramount stockholder cash + ~$2B debt assumption); Skydance + Larry Ellison family ~70%+ post-merger ownership control via dual-class share structure; $2B+ expected cost synergies (~6-8% of combined revenue base); ticker change Paramount Global PARA → Paramount Skydance PSKY; new David Ellison CEO leadership; board reconstitution with Skydance directors. CEO David Ellison since August 7, 2025 (~3-month tenure; ex-Skydance Media CEO 2010-2025 + son of Larry Ellison Oracle founder/CEO; Hollywood film producer ~15-year career including Top Gun: Maverick + Mission: Impossible series + selected; appointed via Skydance Media's controlling stake in post-merger Paramount Skydance). CFO Naveen Chopra since 2020 (continued from Paramount Global pre-merger). Capital return: reduced dividend $0.05-0.10 annual (vs $0.96 pre-merger Paramount Global); aggressive buyback potential post-deleveraging; investment-grade Baa3/BBB- credit rating maintained post-merger; FCF $0.5-1.0B. FY2026 thesis: Skydance merger integration + Paramount+ subscriber growth + cost synergy realization + capital return resumption. Risks: major Paramount+ subscriber attrition above 5M, TV Media accelerated decline, post-merger Skydance + legacy Paramount governance disputes, Filmed Entertainment box office volatility.