US Stock Market Move | Proposed investment of $1.5 billion to expand the content portfolio of Paramount Skydance (PSKY.US) surged over 12%.

On Tuesday, Paramount Skydance (PSKY.US) saw its stock price rise, with the stock up over 12% to $17.1 as of press time. The company had previously announced plans to invest $1.5 billion in theatrical and direct-to-consumer platforms over the next year to enhance its content production and distribution capabilities. This financial report is the first performance report for Paramount Global and Skydance Media since their merger in August. The company expects total revenue to reach $30 billion by 2026, with growth mainly driven by the strong expansion of direct-to-consumer business and the improvement of global profitability. Additionally, the company plans to increase its annual film output to at least 15 films starting in 2026. Interim Chief Financial Officer Andrew Warren said, "Our goal is to achieve investment-grade ratings, so we will continue to deleverage while achieving high cash flow conversion rates after the initial investment cycle." The company also raised its cost savings target from the previous $2 billion to at least $3 billion. In line with the restructuring plan, Paramount-Skydance Entertainment will realign its business segments starting from the first quarter financial report, including direct-to-consumer, television media, and studio segments, to better reflect business performance. Furthermore, there have been market rumors that the company had explored a bid to acquire Warner Bros. Discovery (WBD.US) for $23 to $24 per share, but the offer has been rejected so far.