David Ellison, leading the newly merged Paramount Skydance (NASDAQ:PSKY), used his first earnings call to address speculation about potential mergers — including rumors linking the company to Warner Bros. Discovery (NASDAQ:WBD).
Ellison Rejects Merger Hype, Focuses On Building From Within
On Monday, during Paramount's third-quarter earnings call — Ellison's first as CEO since the $8 billion merger between Paramount and Skydance — the 42-year-old executive made it clear that consolidation isn't a priority.
"There's no must-haves for us," Ellison said in response to a question from Morgan Stanley's Benjamin Swinburne about the company's broader M&A philosophy amid industry chatter. "We really look at this as buy versus build, and we absolutely have the ability to build to get to where we want to go."
Ellison said the company's focus remains on transforming Paramount through what he called its "North Star principles" — creative content engines, streaming growth and long-term free cash flow generation.
"We’re fortunate that we have the balance sheet to be able to be opportunistic when we think that M&A will accelerate our goals," he added, "But we’re also long-term, disciplined owner operators."
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Netflix Also Prioritizes Growth Over Mergers As WBD Considers Sale
In October, during Netflix Inc.'s (NASDAQ:NFLX) third-quarter earnings call, Co-CEO Ted Sarandos also dismissed speculation about potential acquisitions amid renewed merger chatter around Warner Bros. Discovery.
Sarandos said Netflix has "plenty of runway for growth" and remains more focused on building than buying, though it remains open to selective M&A if the strategic fit and long-term value align.
His comment came after Warner Bros. Discovery said that it is exploring a possible sale following unsolicited approaches from several interested parties.
Earnings Miss And Layoffs Mark A Tough Quarter
Paramount Skydance reported a quarterly loss of 12 cents per share, missing analyst expectations of 34 cents per share in earnings.
Revenue came in at $6.7 billion, below the $6.97 billion forecast.
The company also announced 1,600 job cuts and plans to raise prices for its Paramount+ streaming service in early 2026 as part of its turnaround efforts.
Paramount closed at $15.25, up 0.99% on Monday and gained an additional 6.56% in after-hours trading to $16.25. Benzinga's Edge Stock Rankings indicate that PSKY has maintained a downward trajectory across short, medium and long-term time frames. Additional performance insights are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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