Paramount Global co-CEO Chris McCarthy said the company has invested in Taylor Sheridan producer 101 Studios but isn’t looking to acquire what he calls a preferred partner. Par has also started using models it developed around Sheridan with new creative talent. “We absolutely value both of those parties. Let me first start by saying that they’re two separate entities,” McCarthy said on Paramount’s quarterly earnings call when asked why Paramount doesn’t buy 101 and vertically integrate with its hit machine ...

Core Viewpoint - Paramount Global (PARA) is expected to report a decline in both revenues and earnings for the first quarter of 2025 compared to the previous year, with significant factors influencing these results [1][4][6]. Financial Performance Expectations - The Zacks Consensus Estimate for PARA's first-quarter 2025 revenues is $7.1 billion, reflecting a 7.56% decrease from the same quarter last year [1]. - The consensus estimate for earnings is 30 cents per share, which represents a 51.61% decrease year-over-year and has been revised downward by 21.05% in the last 30 days [1]. Subscriber Growth and Content Strategy - PARA added 5.6 million new subscribers on Paramount+ in the fourth quarter of 2024, and subscriber growth is expected to continue, albeit at a slower pace due to content release timing [5]. - The company is anticipated to maintain content momentum on Paramount+, with the return of popular shows and the launch of new series [4]. Advertising and Affiliate Revenue Trends - In the TV Media segment, affiliate revenues are projected to decline by 6.7% year-over-year, with an increased rate of decline expected in the first quarter due to recent renewals and changes in the pay TV ecosystem [6][7]. - Advertising revenues also saw a decline of 4% year-over-year in the previous quarter, with similar trends likely to persist [6]. Adjusted OIBDA and Business Trends - Adjusted OIBDA is expected to decline in the first quarter, influenced by the aforementioned business trends and the comparison to the Super Bowl, which had a positive impact in 2024 [7]. - The cumulative impact of recent renewals with major distributors is another significant factor affecting performance [7]. Earnings Expectations and Model Insights - PARA currently has an Earnings ESP of -24.85% and a Zacks Rank of 3 (Hold), indicating lower odds of an earnings beat [8].