Skydance Reports Q3 2026 Results Following Warner Bros. Discovery Merger
Skydance (SKYD) reported third-quarter 2026 results following its October merger with Warner Bros. Discovery, highlighting a period of significant structural transition. The Paramount Skydance business saw revenue grow 5% year-over-year to $7.0 billion, while Paramount+ revenue surged 21%, bolstered by higher average revenue per user (ARPU) and subscriber growth. Despite these gains, the company faces headwinds in its TV Media segment due to declining pay TV subscribers and international network sales. The merger has resulted in a massive debt load of $87 billion, but management is targeting $6 billion in run-rate synergies within three years. While direct-to-consumer revenue grew 15% pro forma, the company warned of a $200 million EBITDA headwind in Q4 due to underperforming film content from the Warner Bros. slate. Long-term goals include reaching investment-grade credit metrics and achieving at least $10 billion in free cash flow by 2030.
Topics: Direct-to-Consumer EBITDA Merger Integration Revenue Growth Streaming Subscribers
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Part of the story Skydance Outlines $6 Billion Synergy Target and Streaming Bundle Strategy Following Warner Bros. Discovery Merger (4 articles)