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LOS ANGELES/NEW YORK - Skydance Media and Paramount Global completed their merger on Thursday, creating a new entertainment company that will trade on the Nasdaq under the ticker symbol "PSKY." According to InvestingPro data, the company appears undervalued, trading at a price-to-book ratio of just 0.46, significantly below industry averages.
The newly formed entity, officially named "Paramount, a Skydance Corporation," combines Paramount’s content library and global distribution network with Skydance’s production capabilities and technological resources.
David Ellison, who now serves as Chairman and CEO of the merged company, will lead the entertainment conglomerate that encompasses film studios, television networks including CBS, and streaming platforms Paramount+ and Pluto TV.
"Today marks an exciting and pivotal moment as we prepare to bring Paramount’s legacy as a Hollywood institution into the future of entertainment," Ellison said in a statement.
The transaction received backing from RedBird Capital Partners, whose founder Gerry Cardinale expressed confidence in the merger’s potential to address challenges in the evolving media landscape.
"Our investment in Paramount and long-term partnership with the Ellison family reflects our deep conviction in the value of world-class intellectual property," Cardinale stated.
The deal brings together Paramount’s century-old entertainment legacy with Skydance’s more technology-focused approach to content creation. The combined company will operate across three business segments: Studios, Direct-to-Consumer, and TV Media. The merged entity boasts substantial scale with annual revenue of $28.76 billion and EBITDA of $2.576 billion. InvestingPro analysis reveals strong liquidity, with current assets exceeding short-term obligations by 39%.
Financial advisors to the transaction included RedBird Advisors, BofA Securities, Moelis & Company, and The Raine Group for Skydance and its investor group. Paramount’s special committee was advised by Centerview Partners.
The merger announcement comes as traditional media companies face increasing pressure from streaming competition and changing consumer viewing habits.
According to the press release, the newly formed company will focus on streamlining operations and identifying synergies while maintaining its commitment to content creation across entertainment, news, and sports. While the company reported a slight loss in the last twelve months, InvestingPro data shows that eight analysts have revised their earnings estimates upward for the upcoming period, suggesting improved financial performance ahead. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, covering this and 1,400+ other top US stocks.
In other recent news, Paramount Global reported its second-quarter 2025 earnings, showcasing a notable earnings per share (EPS) beat. The company achieved an EPS of $0.46, surpassing the forecasted $0.35, which represents a 31.43% surprise. However, revenue slightly missed expectations, coming in at $6.85 billion compared to the anticipated $6.87 billion. In related developments, Skydance Media announced the full slate of 10 director designees for the upcoming Paramount Skydance Corporation board. This board will assume their roles upon the completion of the proposed merger with Paramount Global. David Ellison is set to lead as Chairman and CEO of the combined entity. The board includes three independent directors and several major shareholders, reflecting a strategic blend of expertise from media, technology, and finance sectors. These developments highlight the ongoing strategic and financial activities surrounding Paramount Global.
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