Paramount Global B 2025 Quarter Report

SECURITIES AND EXCHANGE COMMISSION FORM10-Q Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filingrequirements for the past 90days.Yes Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule405of RegulationS-T during the preceding 12months (or for such shorter period that the registrant was required to submit such files).Yes☒No☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, oran emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth ClassA Common Stock, par value $.001 per share—40,702,683ClassB Common Stock, par value $.001 per share—633,455,085 PARAMOUNT GLOBALINDEX TO FORM 10-Q PART I – FINANCIAL INFORMATION Item1.Financial Statements.Consolidated Statements of Operations (Unaudited) for theThreeMonths EndedMarch 31, 2025andMarch 31, 2024Consolidated Statements of Comprehensive Income (Unaudited) for theThreeMonths EndedMarch 31, 2025andMarch 31, 2024Consolidated Balance Sheets (Unaudited) atMarch 31, 2025andDecember 31, 2024Consolidated Statements of Cash Flows (Unaudited) for theThreeMonths Ended March 31, 2025andMarch 31, 2024 PARAMOUNT GLOBAL AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Tabular dollars in millions, except per share amounts) 1)BASIS OF PRESENTATION Description of Business—Paramount Global is a global media, streaming and entertainment company that creates premiumcontent and experiences for audiences worldwide and is comprised of the following segments: •TV Media—OurTV Mediasegment consists of our (1) broadcast operations—the CBS Television Network, ourdomestic broadcast television network; CBS Stations, our owned television stations; and our international free-to-airnetworks, Network 10, Channel 5, Telefe, and Chilevisión; (2) domestic premium and basic cable networks, includingParamount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon,BET Media Group, CBS Sports Network, and international extensions of certain of these brands; and (3) domestic andinternational television studio operations, including CBS Studios and Showtime/MTV Entertainment Studios, as well as •Direct-to-Consumer—OurDirect-to-Consumersegment includes our portfolio of domestic and international pay andfree streaming services, including Paramount+, Pluto TV, and BET+. •Filmed Entertainment—OurFilmed Entertainmentsegment consists of Paramount Pictures, Paramount Players,Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax. References to “Paramount,” the “Company,” “we,” “us” and “our” refer to Paramount Global and its consolidated subsidiaries,unless the context otherwise requires. Skydance Transactions—On July7, 2024, Paramount entered into a transaction agreement (the “Transaction Agreement”) withSkydance Media, LLC (“Skydance”) and other parties pursuant to which Paramount and Skydance will become subsidiaries ofa new holding company, currently referred to as New Paramount (the transactions contemplated by the Transaction Agreement, Concurrent with the execution of the Transaction Agreement, certain affiliates of existing investors of Skydance (the “NAIEquity Investors”), including entities controlled by members of the Ellison family, and affiliates of RedBird Capital Partners,entered into an agreement with National Amusements, Inc. (“NAI”), the controlling stockholder of the Company, to purchase allof the outstanding equity interests of NAI (the “NAI Transaction”). In addition, the NAI Equity Investors and certain otheraffiliates of investors of Skydance will make an investment of up to $6.0billion into New Paramount in exchange for up to400million newly issued shares of Class B Common Stock of New Paramount (“New Paramount Class B Common Stock”), subjectto ratable reduction, for a purchase price of $15.00per share, and the NAI Equity Investors will also receive warrants topurchase200million shares of New Paramount Class B Common Stock at an initial exercise price of $30.50per share (subject The Transactions will also include: (1) a transaction pursuant to which existing Skydance investors will receive317millionshares of New Paramount Class B Common Stock, and (2) a cash-stock election pursuant to which (a) shares of our Class A PARAMOUNT GLOBAL AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) election, into the right to receive either $23.00in cash or1.5333shares of New Paramount Class B Common Stock, and (b)shares of our Class B Common Stock held by stockholders other than N