By Isabella Simonetti

Paramount's streaming revenue grew in the fourth quarter, but the company -- which is pursuing a bid for rival media company Warner Bros. Discovery -- reported weakness in its TV media segment.

Paramount, whose assets include CBS, Comedy Central, Nickelodeon and its namesake studio, earlier this week revised its bid for Warner, now offering $31 a share.

Paramount reported revenue of $8.15 billion for its fourth quarter, in line with analyst estimates.

Revenue for the direct-to-consumer segment, which includes the Paramount+ streaming service, was $2.2 billion, up 10% from the year-ago period, the company said. Paramount+ ended the quarter with 78.9 million subscribers; analysts polled by FactSet expected it to have 80.2 million subscribers at the end of the period.

TV media revenue declined by 5% year-over-year to $4.71 billion. Paramount said it expects to see continued headwinds to affiliate revenue, driven by declines in pay TV subscribers.

The company forecast total first-quarter revenue between $7.15 billion and $7.35 billion and said it expects to grow direct-to-consumer profitability in 2026 and have stable margins in its TV media segment.

In November, Paramount raised its cost-cutting target to at least $3 billion, up from $2 billion. The company said Wednesday that it is on track to achieve its savings targets through 2027.

Earlier this week, Warner said it had received a revised offer from Paramount to buy the entire company for $31 a share, and said its board of directors determined Paramount's revised bid "could reasonably be expected to lead" to a proposal superior to Netflix's signed agreement to buy Warner's studios and HBO Max streaming service.

Paramount closed its $8 billion merger with Skydance in August. The deal was approved by the Federal Communications Commission in July, shortly after Paramount Global agreed to pay $16 million to settle a lawsuit by President Trump over the editing of a "60 Minutes" interview with Kamala Harris.

Write to Isabella Simonetti at isabella.simonetti@wsj.com

(END) Dow Jones Newswires

February 25, 2026 16:41 ET (21:41 GMT)

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