Paramount's Q2 streaming profits arrive as Skydance takes the keys

In its final earnings report before its acquisition by Skydance Media, Paramount Global revealed its streaming business has turned a profit, a major milestone offset by a loss of subscribers and the continued decline of its legacy TV division.

Profits up, subs down: Paramount's direct-to-consumer division, which includes Paramount+ and Pluto TV, posted a $157 million profit on revenue that jumped 15% to $2.2 billion. The co-CEOs celebrated the progress toward becoming a streaming first company" but the rosy picture was complicated by a net loss of 1.3 million Paramount+ subscribers, which the company blamed on an expiring international bundle deal. The service now stands at just under 78 million subscribers globally.

Passing the torch: The earnings call had a valedictory tone, with non-executive chair Shari Redstone reflecting on her family's legacy. She invoked her father's famous mantra that "content was king," adding, "I am proud that when the Skydance transactions close we will be turning over a healthy business." David Ellison’s Skydance is set to close its $8.4 billion acquisition of the company on August 7.

Clearing the decks: The transition is already prompting a leadership overhaul ahead of the deal's close. Paramount confirmed that co-CEO Chris McCarthy and chief content licensing officer Dan Cohen, who also helmed its Republic Pictures arm, are both set to depart, signaling the formal start of the Skydance era.

Skydance's inheritance: Skydance is acquiring a media giant in the middle of a messy but necessary evolution. The challenge ahead will be to build on the streaming momentum and reverse subscriber losses while managing the inevitable decline of the traditional TV business that still generates billions.

The wider view: The Paramount-Skydance deal involves more than just financials. To secure regulatory approval, Skydance made concessions to the FCC, including installing an ombudsman at CBS News to review bias complaints. The deal has also drawn scrutiny from Washington, prompting Skydance to formally respond to Senate inquiries about a controversial settlement with Donald Trump. Meanwhile, Paramount continues to lean on its biggest franchises, recently inking a new five-year streaming deal for South Park to bolster its streaming service.