Paramount Takes $5.98 Billion Write-Down on Cable Networks in Q2 Tied to Skydance Deal While Streaming Turns First Profit
variety.comBrian Steinberg Senior TV Editor Paramount Global said its looming merger with Skydance Media spurred a goodwill impairment charge of $5.98 billion in its second quarter, the latest warning sign for a media industry that is seeing audiences abandon cable in favor of streaming video in a manner that is upending the economics of the sector.
The company, which owns CBS, the Paramount movie studio and cable networks such as Comedy Central, Nickelodeon and MTV, said overall revenue in the period fell 11% thanks to declines tied to its film and traditional TV operations.
Paramount’s streaming business, however, turned a profit for the first time, with ad sales at Pluto and Paramount+ rising 16%.
Still, the robust performance at the company’s streaming business was not enough to buoy overall results. Paramount said it lost nearly $5.32 billion during the period, widening from $250 million in the year-earlier period.
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