Paramount CEO David Ellison confident about closing Warner Bros. deal despite lawsuit: Well win at trial
Paramount Skydance reported mixed second-quarter results on Tuesday, with higher streaming and studio revenue offsetting declines in television, as the company works to close its planned $110 billion acquisition of Warner Bros.Discovery.The entertainment giant’s revenue rose 1% to $6.91 billion, exceeding estimates of $6.88 billion, according to data compiled by LSEG.Second-quarter profit came in at $41 million, or 4 cents a share, compared with analyst estimates of $109 million or 9 cents a share.Paramount CEO David Ellison said he expects to close the merger with Warner Bros.
even as a federal judge on Tuesday set a March trial date for an antitrust suit brought by a dozen states seeking to block the deal. In an earnings call, Ellison said the company is “absolutely open to finding a solution out of court, but we also really believe that we’ll win at trial.”For the second quarter, Paramount’s streaming business reached nearly $2.5 billion in revenue, up 9% from the same quarter a year ago.The company said the “Yellowstone” sequel, “Dutton Ranch,” and sporting events like the UFC Freedom 250 cage match and the FIFA World Cup helped its marquee Paramount+ service add 2 million new subscribers, bringing the total to 81.6 million.Chief Operating Officer Andy Gordon told Reuters the company has merged its streaming services onto a single technology platform, allowing it to more effectively promote content.For the second quarter, Paramount’s studio business reported revenue of $1.3 billion, reflecting strong sales to third parties like Netflix and Amazon Prime Video, and better content licensing, offset by a weaker summer theatrical slate whose highlight was “Jackass: Best and Last,” compared with last year’s “Mission: Impossible — The Final Reckoning.”Gordon said Paramount has made headway in consumer products licensing, striking a multi-year deal with Mattel for its Teenage Mutant Ninja Turtles entertainment brand.Sales for...