Core Insights - Paramount Global's co-CEO Chris McCarthy emphasized the company's strategic partnership with Taylor Sheridan's 101 Studios, highlighting that they are not seeking to acquire the studio but value the existing relationship [1][2][4] - The partnership with Sheridan has proven successful, with Paramount holding an exclusive agreement with him until 2028 and owning all intellectual property (IP) generated from their collaboration [3] - Paramount has implemented new creative models inspired by Sheridan's work, which have been effective in attracting new talent, such as Jez Butterworth, leading to successful projects like The Agency and MobLand [5] Financial Performance - Paramount reported solid quarterly earnings but is focusing on cash conservation amid a challenging macroeconomic environment, alongside significant cost reductions in preparation for a merger with Skydance [6] - The average production cost of Paramount Pictures' films has been reduced by 35% over the past 24 months, indicating a strategic shift towards more efficient production practices [6] Future Outlook - The company anticipates that its sale to Skydance will be finalized in the first half of the year, pending FCC approval [7]

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].