LOS ANGELES, CALIFORNIA (Reuters) -Paramount Skydance said it will make $1.5 billion in programming investments next year, as it forecast fourth-quarter revenue above Wall Street estimates, in its first quarterly results for the combined company since the completion of the $8.4 billion merger.
Shares of the company were up 7% in trading after the bell.
The company said it will also cut about 1,600 jobs as part of a strategic review, in addition to the 1,000 employees it laid off in late October.
Paramount expects its streaming business to be profitable this year, and grow in profitability in 2026.
In his letter to investors, CEO David Ellison highlighted the streamlining of Paramount Skydance’s studio and distribution operations under one leadership team. It merged Showtime/MTV Entertainment Studios, Nickelodeon Live Action and Skydance Television under Paramount Television Studios.
For the fourth quarter, Paramount Skydance expects revenue between $8.1 billion and $8.3 billion, above estimates of $8 billion, according to data compiled by LSEG.
It reported revenue of $6.7 billion for the third quarter, compared with estimates of $6.97 billion.
(Dawn Chmielewski reporting from Los Angeles, Juby Babu reporting from Mexico City; Editing by Sriraj Kalluvila Alan Barona)
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