The film production company Paramount managed to surprisingly achieve profits in the fourth quarter. A success that comes at an opportune time, as the company is currently in the focus of potential acquisition interests.
The corporation ended the fourth quarter with earnings per share of $0.04. Although this was less than in the same quarter of the previous year, which had a positive result of $0.08, it still exceeded the expectations of analysts who had anticipated a loss and had forecasted an EPS of -$0.01.
On the other hand, Paramount's revenue was less convincing. With 7.64 billion US dollars, the company fell short of market expectations of 7.84 billion US dollars. Weak performance in the advertising market and ongoing competition in the streaming sector had a negative impact on the quarterly figures.
However, the in-house streaming service Paramount+ could be recorded as a winner in the reporting quarter. With 4.1 million new subscribers compared to 2.7 million in the previous quarter, the company significantly exceeded market expectations of 4.03 million.
In a statement, Paramount chief Bob Bakish also commented on the profitability goals for the streaming service: "We expect that Paramount+ will be profitable in the year 2025," he said. A statement that strengthens confidence in the company's future performance.
The Positive Quarterly Financial Statement Comes at a Time When Paramount is Being Discussed as a Potential Takeover Target. After Merger Talks with Warner Bros Discovery Recently Failed, the Offer by Media Mogul Byron Allen Remains on the Table. Together with Other Partners, His Allen Media Group Has Presented a Bid of 14 Billion US Dollars. Including the Debts to be Assumed, the Total Value Amounts to 30 Billion US Dollars.
The heading in English could be:
Skydance Media Considered as a Second Possible Bidder
According to CNBC, the company is currently undergoing due diligence regarding a potential acquisition of Paramount. Whether the successful quarterly report will influence the potential purchase price remains to be seen. However, Paramount+'s strong positioning in a competitive market environment could certainly be advantageous.
