Welcome back to NextGen Investing. It's now time for FOMO and we are talking the latest with the Paramount Sky Dance and Warner Brothers Discovery potential merger. Joining us now is Marley Kaden, host for the Schwab Network to give us some details.And I have to say, first of all, these companies have become such like conglomerates. It's a mouthful to say their their full titles together because they've bought so many other companies and now the entities are like, you know, Warner Brothers, Discovery, Param ...

Investors betting on a Paramount Skydance Corp PSKY–Warner Bros Discovery Inc WBD tie-up aren't just buying into a flashy studio mash-up; they're staring down a high-stakes reshaping of Hollywood's balance of power. Thursday's price action was telling: WBD's 28% surge — its best day ever — signals Wall Street sees real M&A premium potential. In comparison, Paramount Skydance's 15% jump reflects investor faith in CEO David Ellison's acquisition strategy and deep capital backing from RedBird and Larry Ellison ...

Paul, One reason why you are hopeful for this movie is that it's a nostalgia film. Who's actually is the audience that they're targeting. Millennials, Gen Z, or maybe the original Gen Xers who watched the Freaky Friday that aired in 1977.Yeah, you know, that's interesting, Scarlett, because I think the audience is incredibly vast for this movie. Having that PG rating means you could basically take the entire family. I think there is the nostalgia factor.And to think that Freakier Friday, the 23 one came out ...

Financial Data and Key Metrics Changes - Total company revenue grew 2% year over year, excluding the Super Bowl, reaching $7.2 billion [6][22] - Direct to Consumer (D2C) revenue increased by 9% year over year to $2 billion, with subscription revenue growing 16% [23] - Adjusted OIBDA improved to $688 million, reflecting year-over-year improvements in D2C and filmed entertainment [22][24] - Free cash flow was $123 million, including $108 million in restructuring payments [22] Business Line Data and Key Metrics Changes - D2C OIBDA improved by nearly $180 million year over year, with a loss of $109 million [6][23] - Filmed Entertainment revenue was $627 million, up 4% year over year, with OIBDA of $20 million compared to a loss of $3 million in the previous year [24][25] - TV Media advertising revenue, excluding the Super Bowl, was flat year over year, with OIBDA at $922 million [24] Market Data and Key Metrics Changes - Paramount Plus ended the quarter with 79 million global subscribers, an increase of 11 million year over year [7] - Global watch time per user on Paramount Plus increased by 17% year over year, and churn improved by 130 basis points [7] - CBS's network audience grew 3% in the quarter compared to last year, with a 12% increase without the Super Bowl comparison [17] Company Strategy and Development Direction - The company is focusing on driving profitable growth through a differentiated content strategy, emphasizing fewer but bigger original series [7][10] - Paramount is prioritizing key investments while streamlining non-content expenses in response to macroeconomic uncertainties [6][28] - The company plans to achieve domestic profitability for Paramount Plus in 2025, leveraging improvements in churn and ARPU [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite macroeconomic uncertainties, noting strong engagement and content-driven growth [6][28] - The company anticipates that supply-demand dynamics in digital advertising will stabilize over time, leading to improved monetization [30][34] - Management highlighted the importance of maintaining strong relationships with affiliates and securing valuable content partnerships [36] Other Important Information - The company is set to premiere several new series and franchise expansions, including new installments of Yellowstone and Dexter [10][11] - Pluto TV achieved its highest consumption ever, with global viewing time up 26% year over year, although monetization has been softer than expected [12] Q&A Session Summary Question: Advertising pressure on Pluto and digital advertising - Management acknowledged the impact of increased supply in digital advertising but expressed confidence that supply-demand dynamics will balance out over time [30][33] Question: Licensing strategy for library content versus original content - Management indicated that content licensing remains a growth area, but the focus will be on using valuable IP to enhance owned and operated assets [39][40] Question: Expectations for linear declines and streaming growth - Management noted that subscriber declines in linear TV are expected to continue, while streaming growth will be driven by subscriber growth, churn improvements, and ARPU [46][48] Question: Importance of Taylor Sheridan and potential acquisitions - Management emphasized the value of the partnership with Taylor Sheridan and the current model as optimal for maximizing value without pursuing acquisitions [52][54] Question: Interest in bundling and joint ventures - Management expressed openness to exploring bundling opportunities and partnerships but emphasized a disciplined approach to ensure value creation [60][62] Question: Current linear trends and guidance for full year OIBDA and free cash flow - Management reiterated that the fundamental drivers of earnings improvement remain in place, despite macroeconomic uncertainties impacting advertising revenue [70][71]