Netflix's Newest Rival Has Nearly $70 Billion in Annual Sales. It Also Carries About $82 Billion of Debt.
The merged Paramount and Warner Bros. now outsells the top streamer by around a third. Should shareholders worry?
Overview
Paramount closed its purchase of Warner Bros. Discovery on Tuesday, Oct. 6, and the merged company, now named Skydance (NYSE:SKYD), says it has almost $70 billion in revenue. Besides two movie studios, CBS, and CNN, it owns the Paramount+ and HBO Max streaming services, and it counts over 200 million streaming subscribers across its platforms.
That makes it bigger than Netflix (NASDAQ:NFLX), at least in sales. The streaming leader expects 2026 revenue of $51.0 billion to $51.4 billion, so even against Netflix's outlook for this year, Skydance takes in around a third more.
Details
It's also a deal Netflix wanted a piece of. Netflix agreed last December to buy Warner Bros.' studios and HBO Max for an enterprise value of around $82.7 billion. It later declined to match Paramount's larger offer in February and got a $2.8 billion termination fee.
Source
Originally published at www.fool.com.