Paramount “Fully Expects” WBD Merger To Close As It Reports Q2 Streaming Gains, Linear Challenges
Deadline
•Tue, 04 Aug 2026 20:04:46 +0000
📰 What Happened
Paramount reported mixed second-quarter results, with strong streaming gains, tough theatrical comparisons and an ongoing decline in linear television, while saying it 'fully expects' its planned merger with Warner Bros. Discovery to close. Paramount+ gained about 2 million subscribers in the quarter to reach 81.6 million worldwide, its best retention quarter ever, powered by Dutton Ranch, UFC and the FIFA World Cup. Total revenue was roughly $6.9 billion, in line with forecasts, and the company raised its full-year 2026 outlook while expecting over $2.7 billion in cost savings by year-end.
🔍 The Backstory
Skydance acquired Paramount almost exactly a year earlier, and the combined company is pursuing a merger with Warner Bros. Discovery that is being contested in court by state attorneys general and the Writers Guild of America. The results arrive as a federal judge set a March trial date for the antitrust case against the merger. Paramount+ absorbed BET+ during the quarter.
🎯 Why It Matters
The strong streaming subscriber numbers and raised outlook help Paramount argue it is a healthy, growing business, which matters to its case for the merger. The ongoing drop in linear revenue illustrates the industry-wide transition to streaming that is driving consolidation. The outcome of the merger trial will shape the future structure of major Hollywood studios for years.
Paramount reported mixed second-quarter results, with strong streaming gains, tough theatrical comparisons and an ongoing decline in linear television, while saying it 'fully expects' its planned merger with Warner Bros. Discovery to close. Paramount+ gained about 2 million subscribers in the quarter to reach 81.6 million worldwide, its best retention quarter ever, powered by Dutton Ranch, UFC and the FIFA World Cup. Total revenue was roughly $6.9 billion, in line with forecasts, and the company raised its full-year 2026 outlook while expecting over $2.7 billion in cost savings by year-end.
Skydance acquired Paramount almost exactly a year earlier, and the combined company is pursuing a merger with Warner Bros. Discovery that is being contested in court by state attorneys general and the Writers Guild of America. The results arrive as a federal judge set a March trial date for the antitrust case against the merger. Paramount+ absorbed BET+ during the quarter.
The strong streaming subscriber numbers and raised outlook help Paramount argue it is a healthy, growing business, which matters to its case for the merger. The ongoing drop in linear revenue illustrates the industry-wide transition to streaming that is driving consolidation. The outcome of the merger trial will shape the future structure of major Hollywood studios for years.