The company is also exploring “potential strategic partnerships” for Paramount+ and is re-evaluating its portfolio with an eye to improving its balance sheet. 

Paramount continued to push forward on its $500 million cost-savings plan and goal of reaching sustained profitability in streaming by 2025, in the company’s first earnings report since the Skydance deal was announced. 

Paramount Global had 21,900 employees worldwide as of the end of 2023, but eliminated an estimated 800 positions in February.

“The set of assets that make up Paramount Global today were built up through the rise of linear and while we have strong brands and businesses, we must reshape our portfolio to best compete in the future,” said Paramount Co-CEO Chris McCarthy. “The assets under consideration are undeniably strong with exciting futures ahead, but will be better served on their own or as the centerpiece of another business.”

The $500 million is included in the $2 billion of cost efficiencies identified by Skydance. In connection with these actions, Paramount expects to incur a restructuring charge of approximately $300 million to $400 million in the third quarter, with the cash impact occurring over the next several quarters.

In the company’s second quarter earnings report, Paramount reported direct-to-consumer revenue up 13 percent year-over-year to reach $1.8 billion and an adjusted profit figure of $26 million, after a loss of $424 million a year ago. The change in income was attributed to the revenue growth and lower costs for marketing and content.

Overall, Paramount reported an operating loss of $5.3 billion, after a loss of $250 million a year ago. The company attributed the change to a “goodwill impairment” charge of $5.98 billion for its cable networks reporting unit, which comes amid the estimated company market value for Paramount amid the Skydance offer and a decline in pay TV.

Revenue fell 11 percent year over year to $6.8 billion, with a 17 percent drop in revenue in the company’s TV Media division and an 18 percent drop in filmed entertainment. The drop in TV revenue was largely attributed to fluctuations in licensing revenues, which dropped 48 percent, as well as declines in the linear advertising market.

While helped by the releases of IF and A Quiet Place: Day One, theatrical revenues suffered by comparison to the release of Transformers: Rise of the Beasts in the prior year.