(Reuters) -Paramount Skydance shares rose 5.5% as the newly merged media firm announced more cost cuts and plans to invest \u200b$1.5 billion in its streaming and studio divisions, lifting investor confidence following \u200cits first results since the merger.<\/p>\n
The results offered an early glimpse into the financial impact of CEO David Ellison’\u200cs rapid overhaul of Paramount to bring the storied media house into the digital age.<\/p>\n
The tech scion who founded Skydance Media has secured a Timothee Chalamet-led heist film, signed “South Park” creators Matt Stone and Trey Parker to a five-year agreement and struck a \u2060deal with Activision to bring \u200c”Call of Duty” to theaters. Paramount is also looking into a potential takeover of Warner Bros Discovery.<\/p>\n
The efforts are expected to help \u200dbring in $30 billion in revenue by 2026.<\/p>\n
The company has also raised its savings target to at least $3 billion, and said it would shed 1,600 jobs tied to asset sales \u200bin Argentina and Chile, on top of 1,000 layoffs in October and 600 \u200cvoluntary exits.<\/p>\n
“While we’re encouraged by Paramount’s vision, there remains a significant amount of execution across direct-to-consumer (DTC) and filmed entertainment, the benefits of which may not be visible until later in 2026,” J.P.Morgan analysts said.<\/p>\n
Analysts have also pointed to near-term cash outflows and persistent risks in the company’\u2060s TV Media segment, along with higher-than-\u200bexpected transformation costs, including a $500 million restructuring \u200bcharge in the fourth quarter and $800 million in one-time investments for 2026.<\/p>\n
Ellison said the company was determined to lead through a “generational transformation”\u200d in media, \u2060with plans to unify its streaming platforms and ramp up theatrical output to 15 films in 2026.<\/p>\n
Paramount Skydance shares, which have gained almost 46% this year,\u2060 trades at a forward price-to-earnings ratio of 14.58, below Walt Disney at 16.\u200c96 and well under Netflix at 35.23.<\/p>\n
(Reporting by Rashika \u200cSingh in Bengaluru; Editing by Devika Syamnath)<\/p>\n","protected":false},"excerpt":{"rendered":"(Reuters) -Paramount Skydance shares rose 5.5% as the newly merged media firm announced more cost cuts and plans…\n","protected":false},"author":2,"featured_media":276442,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[49,48,18027,75,28915,27395,101962,18416,348,8093],"class_list":["post-276441","post","type-post","status-publish","format-standard","has-post-thumbnail","category-tv","tag-ca","tag-canada","tag-david-ellison","tag-entertainment","tag-investor-confidence","tag-paramount-skydance","tag-skydance-media","tag-trey-parker","tag-tv","tag-warner-bros-discovery"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/276441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=276441"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/276441\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/276442"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=276441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=276441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=276441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}