Paramount entered into a transaction agreement with Skydance Media, which will result in Paramount becoming a subsidiary of a new holding company. The transaction is subject to customary closing conditions and regulatory approvals, with an expected closing in the first half of 2025.

Direct-to-Consumer revenues increased by 13%, driven by subscription growth in Paramount+. Subscriber count reached 77.5 million, a 15% increase year-over-year.

The company is implementing major strategic changes to its content strategy, resulting in programming charges of $1.12 billion in 2024 and $2.37 billion in 2023. This involves removing content from platforms, abandoning projects, and terminating agreements.

Robert Bakish stepped down as CEO, and the Board established an Office of the CEO with three co-CEOs: George Cheeks, Chris McCarthy, and Brian Robbins. Bakish remained as a Senior Advisor until October 31, 2024.

The company has implemented various cost savings initiatives, including workforce restructuring and integration of streaming services. This is reflected in lower SG&A expenses and content costs.

The success of the transaction will depend, to a large extent, on New Paramount's ability to integrate the Company's and Skydance's businesses in a manner that facilitates growth opportunities and achieves certain cost savings, operating synergies and revenue growth trends.

The company acknowledges that its streaming business is intensely competitive and cash intensive, and there is no assurance that it will be profitable or successful. The ability to attract, engage, and retain users is crucial.

Advertising revenues are sensitive to changes in consumer behavior, advertising market conditions, and macroeconomic factors. The evolution of consumer preferences toward streaming and digital services has intensified audience fragmentation.

The Skydance transaction is subject to conditions, regulatory approvals, and potential delays or prevention. Significant transaction and transition costs are expected, and business uncertainties exist while the transaction is pending.

The company operates in highly competitive industries and markets, competing for creative talent, intellectual property, audiences, advertisers, and distribution of content. Competitors include a variety of media, technology, and entertainment companies.

A significant portion of the company's revenues are attributable to agreements with a limited number of distributors. The loss of these agreements or renewal on less favorable terms could adversely affect the business.

The company's reputation and globally recognized brands are critical to its success. Damage to its reputation or brands could impact sales, number of viewers, users, and other customers, business opportunities, profitability, retention, recruiting and the trading prices of the Common Stock.

The company has undertaken a series of strategic initiatives designed to streamline and transform its organization. These initiatives include workforce reductions and exiting certain leases.

Cost savings initiatives are reflected in lower SG&A expenses and content costs. However, these savings may be offset by costs associated with the restructuring itself.

The company is taking measures to reduce its real estate footprint and create cost synergies. Impairments were primarily the result of a decline in market conditions.

The company has an information security program designed in alignment with the NIST Cybersecurity Framework. Cybersecurity risk is integrated into the overall strategic risk management program.

The industry is currently transitioning to a multiplatform measurement environment in an effort to more completely measure viewership and advertising across linear, streaming and digital.

The rapid global advancement of artificial intelligence and machine learning technologies may also heighten our risks by making cyberattacks more difficult to detect, contain, and mitigate.

At December 31, 2024, the remaining authorization on the share repurchase program was $2.36 billion. However, the company did not purchase any shares of its common stock during the fourth quarter of 2024.

The company continues to declare a quarterly cash dividend of $.05 per share on its Class A and Class B Common Stock.

The company continues to invest in streaming services and original content. This is evidenced by the growth in Direct-to-Consumer revenues and the strategic changes in content strategy.

A number of new domestic and international laws and regulations relating to sustainability matters, including human capital management and cybersecurity, have been adopted and many more are under consideration.

At the same time, there has been an increase in proposed or enacted “anti-ESG” or “anti-DEI” legislation, regulation, policies, enforcement priorities, directives, initiatives and legal opinions.

The goals or initiatives we do undertake may not align with the expectations of our stakeholders, which often vary significantly, and may not align with future stakeholder expectations, reporting frameworks, regulatory requirements, or best practices.

The global financial markets have experienced significant recent volatility, marked by declining economic growth, diminished liquidity and availability of credit, declines in consumer confidence, significant concerns about increasing and persistently high inflation and uncertainty about economic stability.

There can be no assurance further deterioration in credit and financial markets and confidence in economic conditions will not occur.

We may also be subject to longer payment cycles. In addition, foreign currency fluctuations have impacted, and may continue to impact, revenues and expenses of our international operations and expose us to foreign currency exchange rate risk.