Paramount+ subscribers increased to 79.0 million at March 31, 2025, from 71.2 million at March 31, 2024, an 11% increase. This growth drove a 16% increase in subscription revenues for the Direct-to-Consumer segment. Key content driving growth included Landman, 1923, Yellowjackets, and NFL playoffs.

Paramount entered into a transaction agreement with Skydance Media, with the aim for Paramount and Skydance to become subsidiaries of a new holding company, New Paramount. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025. The deal involves a cash-stock election for stockholders.

The company continues to shift to a global programming strategy, resulting in the removal of significant levels of content from platforms, abandonment of development projects, and termination of programming agreements. This shift resulted in programming charges of $1.12 billion in Q1 2024, but no similar charges in Q1 2025.

Selling, general, and administrative (SG&A) expenses decreased 7%, primarily reflecting lower compensation costs following the restructuring of our global workforce in 2024, as well as lower marketing costs. Restructuring charges primarily relate to the impairment of lease assets due to initiatives to reduce the real estate footprint.

Net cash flow provided by operating activities includes payments associated with restructuring, transaction-related costs, and transformation initiatives. These transformation initiatives are related to advancing our technology, including the unification and evolution of systems and platforms, and migration to the cloud.

The company is facing multiple lawsuits related to the Skydance transaction, alleging breaches of fiduciary duties and seeking inspection of books and records. These legal challenges could potentially delay or prevent the transaction from closing.

Certain contracts may require the company to obtain consents from other parties in connection with the Transactions. Failure to obtain such consents could give counterparties the right to terminate, reduce the scope of, or otherwise alter their relationships with New Paramount, potentially impacting the company's business, financial condition, and results of operations.

The company is exposed to political risks inherent in conducting a global business, including retaliatory actions by governments reacting to changes in the U.S. and other countries, including in connection with the imposition of tariffs and other changes in trade policies. Growing macroeconomic uncertainty relating to the imposition of tariffs and other changes in trade policies may negatively affect our results, in particular from potential impacts on the advertising market.

The company is a defendant in lawsuits claiming personal injuries related to asbestos exposure from products manufactured by Westinghouse, a predecessor. As of March 31, 2025, there were approximately 17,720 pending asbestos claims. While the company has accruals for these liabilities, actual liabilities may be higher or lower than the current accrual.

The increase in Paramount+ subscribers to 79.0 million demonstrates the company's ability to attract and retain subscribers in a competitive streaming market. This growth is driven by key content and pricing strategies. Subscriber growth is a key indicator of competitive strength in the DTC market.

The absence of a Super Bowl broadcast in Q1 2025 significantly impacted the YoY revenue comparison for the TV Media segment. This highlights the impact of event-driven programming on revenue and the competitive importance of securing rights to major sporting events.

The company is involved in litigation with Sony Pictures Television regarding distribution agreements for Wheel of Fortune and Jeopardy!. This litigation highlights the competitive landscape for content distribution and the importance of securing and maintaining distribution rights.

Selling, general and administrative (SG&A) expenses decreased 7%, principally reflecting lower compensation costs following the restructuring of our global workforce in 2024, as well as lower marketing costs. This indicates improved operational efficiency through cost management.

Content costs decreased 3%, including a 9% impact from the comparison to costs associated with the Super Bowl in 2024. This decrease was partially offset by higher costs in 2025 for other content on our streaming services and networks, and associated with recent theatrical releases. This shows efficiency in content spending.

Restructuring charges primarily relate to the impairment of lease assets that we ceased use of in connection with initiatives to reduce our real estate footprint and create cost synergies. This indicates efforts to improve operational efficiency by optimizing real estate usage.

Net cash flow provided by operating activities includes payments associated with restructuring, transaction-related costs, and transformation initiatives. These transformation initiatives are related to advancing our technology, including the unification and evolution of systems and platforms, and migration to the cloud.

Depreciation and amortization expense reflects depreciation of fixed assets and amortization of finite-lived intangible assets. The 12% decrease is primarily due to technology assets that became fully depreciated and intangible assets that became fully amortized.

During the first quarter of 2025, the company did not purchase any shares under its publicly announced share repurchase program, which had remaining authorization of $2.36 billion at March 31, 2025. This suggests a shift in capital allocation strategy, potentially prioritizing other investments or debt reduction.

Capital expenditures were $(57) million compared to $(51) million in the prior year. This shows a consistent level of investment in capital assets.

The Skydance transaction involves a significant equity investment of up to $6.0 billion into New Paramount. The company may opportunistically enter into transactions to manage our outstanding debt maturities, which could result in a charge from the early extinguishment of debt.

The provided 10-Q filing does not contain specific information or metrics related to environmental, social, or governance (ESG) initiatives. There is no discussion of environmental commitments, social responsibility programs, or governance practices.

Advertising revenue decreased 19% YoY, primarily due to the absence of a Super Bowl broadcast in Q1 2025. This highlights the impact of major sporting events on advertising revenue and the cyclical nature of this revenue stream.

Affiliate and subscription revenues decreased 9%, principally reflecting decreases of 7% from linear subscriber declines and 1% from contractual pricing, which was impacted by recent renewals. This reflects the ongoing trend of cord-cutting and the shift towards streaming services.

The company is exposed to political risks inherent in conducting a global business such as retaliatory actions by governments reacting to changes in the U.S. and other countries, including in connection with the imposition of tariffs and other changes in trade policies. Growing macroeconomic uncertainty relating to the imposition of tariffs and other changes in trade policies may negatively affect our results.