{"schemaVersion":1,"research":true,"symbol":"psky","name":"Paramount Skydance","topic":"moat","path":"/stock/psky/moat","status":"published","version":4,"updatedAt":"2026-10-18T14:56:22.106Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"uncertain","summary":"Paramount+ demonstrates current demand for differentiated content and realized pricing increases, but the passages do not establish a durable competitive moat across Paramount Skydance. Subscriber growth alongside higher pricing is encouraging; distribution nonrenewals, rising sports costs and limited comparative evidence constrain the conclusion. The pending WBD combination provides no current moat.","advantages":[{"mechanism":"intangible_assets","claim":"Content and brands provide demonstrated customer appeal: Paramount+ subscriber growth benefited from UFC programming and successful series. This supports current differentiation, but does not establish durable competitive protection.","durability":"Unproven. Recognized franchises, trade names and broadcasting licenses identify assets, but accounting valuations and amortization periods do not demonstrate economic durability. The supplied passages omit key rights durations, renewal economics and sustained comparative performance.","risks":"International distribution nonrenewals caused subscriber losses, UFC programming increased content costs, and broadcasting licenses experienced impairment indicators. Pending merger benefits remain prospective.","invalidation":"The differentiation thesis would weaken if content releases ceased producing sustained paid demand, distribution losses repeatedly outweighed additions, or higher rights costs absorbed incremental subscription revenue. A positive moat conclusion would require sustained pricing and demand evidence together with durable rights or other demonstrated barriers.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5"],"counterEvidenceIds":["e6","e7","e8","e9","e10","e11"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Notes: acquired intangible assets and valuation assumptions","excerpt":"Intangible assets Values Valuation Method Estimated weighted average straight-line amortization period FCC and other broadcasting licenses $2,558 Greenfield discounted cash flow method 30 years Trade names $1,521 Relief from Royalty 17.3 years Affiliate relationships $1,005 Multi-period excess earnings 2.6 years Subscriber relationships $1,080 Replacement cost 2 years Franchises $337 Discounted cash flow 10 years Developed technology $258 Replacement cost 3 years (e) The fair value was determined based on quoted prices in active markets."},{"id":"e2","sourceId":"filing-2","location":"MD&A: first-quarter Paramount+ subscriber growth and content contribution","excerpt":"Subscriber growth of 0.7 million from December 31, 2025 benefited from the UFC on Paramount+ and the continued success of Landman in the first quarter of 2026."},{"id":"e3","sourceId":"filing-1","location":"MD&A: second-quarter Paramount+ content contribution to subscriber growth","excerpt":"million at March 31, 2026. The subscriber growth benefited from the UFC on Paramount+ and the premiere of"},{"id":"e4","sourceId":"filing-1","location":"MD&A: second-quarter affiliate and subscription revenue pricing increases","excerpt":"Affiliate and subscription revenues for the second quarter of 2026 benefited from pricing increases and growth in"},{"id":"e5","sourceId":"filing-1","location":"MD&A: year-over-year Paramount+ subscriber growth","excerpt":"Paramount+ subscribers. Compared with June 30, 2025, Paramount+ subscribers increased 4.8 million, or 6%,"},{"id":"e6","sourceId":"filing-2","location":"MD&A: first-quarter subscriber loss from distribution nonrenewal","excerpt":"The increase in subscribers was partially offset by a decrease of 1.2 million subscribers from the nonrenewal of an international distribution agreement."},{"id":"e7","sourceId":"filing-1","location":"MD&A: second-quarter subscriber losses from international distribution nonrenewals","excerpt":"Dutton Ranch, but was partially offset by a decrease of 1.8 million subscribers from the nonrenewal of"},{"id":"e8","sourceId":"filing-1","location":"MD&A: higher Paramount+ sporting-event content costs","excerpt":"Content costs during the second quarter of 2026 include higher costs associated with sporting events on"},{"id":"e9","sourceId":"filing-1","location":"Notes: industry projection declines triggering FCC license impairment tests","excerpt":"For the second quarter of 2025, as a result of declines in industry projections, we determined that interim impairment tests were necessary for six markets in which we hold FCC licenses."},{"id":"e10","sourceId":"filing-1","location":"Notes: FCC license impairment test results","excerpt":"The impairment tests indicated that the estimated fair values of FCC licenses in each of the six markets tested were"},{"id":"e11","sourceId":"filing-1","location":"Risk factors: stipulation restricting WBD merger closing and integration","excerpt":"We have entered into a stipulation agreeing that the WBD Merger will not close, and we will not take any steps to integrate the operations of Paramount with those of WBD, until the earlier of five days following the court’s ruling or June 1, 2027."},{"id":"e12","sourceId":"filing-2","location":"MD&A: first-quarter realized subscription pricing increases","excerpt":"Affiliate and subscription revenues for the first quarter of 2026 benefited from pricing increases and growth in Paramount+ subscribers."},{"id":"e13","sourceId":"filing-1","location":"MD&A: second-quarter Paramount+ ARPU increase","excerpt":"12% to $8.52. The 10% increase in affiliate and subscription revenue compared with the non-GAAP Predecessor"},{"id":"e14","sourceId":"filing-2","location":"MD&A: adjusted EBITDA growth, cost savings and programming accounting effects","excerpt":"Adjusted EBITDA grew 59% primarily reflecting lower compensation and marketing costs as a result of cost savings initiatives, and lower content costs, including from reductions in programming assets resulting from the pushdown of the Ultimate Parent’s basis."},{"id":"e15","sourceId":"filing-1","location":"MD&A: adjusted EBITDA exclusions and comparability limitations","excerpt":"While both adjusted measures exclude items identified as affecting comparability that are not part of our normal operations, including programming charges, impairment charges, restructuring charges, transaction-related items, other corporate matters, and gain (loss) on dispositions, each where applicable, Adjusted EBITDA, as we define it, also excludes stock-based compensation, which is a noncash expense that management does not consider to be part of our underlying operating performance."},{"id":"e16","sourceId":"filing-2","location":"Notes: actual WBD-related termination-fee payment","excerpt":"In the first quarter of 2026, under the terms of the WBD Merger Agreement, we paid a termination fee of $2.8 billion to Netflix on behalf of WBD in connection with the termination of a prior merger agreement between Netflix and WBD."},{"id":"e17","sourceId":"filing-2","location":"Notes: initial borrowing and expected equity funding of termination-fee payment","excerpt":"This payment was initially funded with cash on hand and a $2.15 billion borrowing from our credit facility (see Note 7) and, in accordance with the Subscription Agreements described below, entered into by the Ellison Parties (as defined below), such amount will ultimately be funded by the $46.7 billion to be received from the Ellison Parties."},{"id":"e18","sourceId":"filing-1","location":"Notes: committed WBD acquisition debt financing","excerpt":"We have also secured commitments for debt financing totaling $54 billion, which include a $49 billion 364-day senior secured bridge loan facility, which we plan, subject to market conditions and other timing considerations, to reduce or replace with permanent financing (which may include issuance of debt securities) on or prior to the closing of the WBD Merger and, in connection with a credit agreement entered into in April 2026 (the “Pro Rata Credit Agreement”), $2.50 billion three-year senior secured term A loans and $2.50 billion five-year senior secured term A loans."},{"id":"e19","sourceId":"filing-2","location":"MD&A: realized dilution from Skydance and NAI transaction share issuance","excerpt":"The decrease in diluted EPS and adjusted diluted EPS reflects shares issued in connection with the Skydance Transactions and the NAI Transaction."},{"id":"e20","sourceId":"filing-2","location":"Notes: investor subscription agreements and committed equity amounts","excerpt":"(“RedBird” and, together with the Trust, the “Equity Investors”) entered into subscription agreements (collectively, the “Subscription Agreements”) providing for a private placement investment in Class B common stock of Paramount Skydance Corporation (“Paramount Skydance Corporation Class B Common Stock”), for an aggregate amount of up to $46.7 billion (subject to increase if the Ticking Consideration, as defined in the WBD Merger Agreement or certain other additional amounts as defined in the WBD Merger Agreement are required) from the Trust and $250 million from RedBird pursuant to the terms of the Subscription Agreements."},{"id":"e21","sourceId":"filing-1","location":"Notes: investors retain funding obligations if syndication parties fail to perform","excerpt":"To the extent that any Equity Syndication Party does not perform under its syndication assignment, the obligation of the Equity Investors to fund the related amount of the commitments would continue to be required under the Subscription Agreements."},{"id":"e22","sourceId":"filing-1","location":"Notes: prospective post-closing concentration of voting control","excerpt":"Following the closing, the Ellison Family (as defined below) and RedBird will remain the sole holders of Paramount Class A Common Stock, representing 100% of the voting shares of Paramount."},{"id":"e23","sourceId":"filing-1","location":"Related-party disclosures: combined CEO and board chairman roles","excerpt":"David Ellison is the CEO of Paramount and the Chairman of our Board of Directors."},{"id":"e24","sourceId":"filing-1","location":"Related-party disclosures: Lawrence J. Ellison's Oracle roles and ownership","excerpt":"Lawrence J. Ellison is the Chairman and a significant stockholder of Oracle Corporation (“Oracle”)."},{"id":"e25","sourceId":"filing-1","location":"Related-party disclosures: six-year Oracle cloud commitment","excerpt":"In February 2026, we executed a six-year cloud infrastructure services agreement with Oracle with a total commitment of $300 million, under which payments escalate over the term, in connection with our anticipated enterprise, data, and streaming workloads."},{"id":"e26","sourceId":"filing-1","location":"Related-party disclosures: actual payments to Oracle","excerpt":"During the three and six months ended June 30, 2026, we made payments to Oracle totaling $44 million and $46 million, respectively."}],"changes":["The verdict remains uncertain, but the supplied operating passages materially strengthen the evidence for current content differentiation and pricing outcomes relative to the previous analysis.","First- and second-quarter pricing increases, subscriber growth and higher ARPU support numerical pricing assessments; these outcomes do not establish durable competitive protection.","Actual transaction spending, financing commitments, dilution and related-party disclosures now support management assessments, with material limitations."],"limitations":["Both sources are issuer filings: filing-1 was filed August 4, 2026, and filing-2 was filed May 4, 2026. These are filing dates, not retrieval dates. No subsequent merger closing or operating outcome is established.","The passages do not establish named operating competitors or comparative market positions. Netflix appears in acquisition-related disclosures, Oracle as a supplier and Nokia in patent litigation; those references do not establish operating competitor coverage.","Subscriber additions and distribution losses provide indirect demand evidence, not cohort retention, churn or renewal rates. ARPU includes total Paramount+ revenue and cannot isolate subscription pricing from advertising or mix.","Rights exclusivity, renewal costs, customer switching friction and long-term content economics are insufficiently disclosed. Intangible asset valuations do not prove a moat.","Executive compensation terms, vesting conditions, ownership economics and independent approval safeguards are missing. Financing commitments are documented, but merger returns and integration execution remain unproven.","Fragmented passages and successor/predecessor accounting differences limit comparisons. Generic merger and financing risks are prospective, not proof of realized operating failure."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":null,"rationale":"Content-driven demand and identifiable intangible assets support differentiation, but do not establish durable barriers or comparative competitive superiority.","evidenceIds":["e1","e2","e3"]},{"criterion":"durability","grade":null,"rationale":"The passages lack sustained competitive outcomes and sufficient rights-duration or renewal economics. Accounting asset lives cannot establish moat duration.","evidenceIds":["e1","e11"]},{"criterion":"customer_dependency","grade":null,"rationale":"Paid subscriber growth demonstrates demand, while distribution losses show relationship fragility. Neither establishes customer dependency or switching costs.","evidenceIds":["e5","e6","e7"]},{"criterion":"erosion_resilience","grade":null,"rationale":"Growth coexists with higher content costs and broadcasting asset erosion; the evidence cannot establish resilience of a structural advantage.","evidenceIds":["e5","e8","e9","e10"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":3,"rationale":"Both quarters explicitly report revenue benefits from pricing increases, and second-quarter ARPU rose 12% to $8.52 alongside year-over-year subscriber growth. This demonstrates current pricing success, although ARPU also reflects advertising and mix and the history is short.","evidenceIds":["e12","e4","e13","e5"]},{"criterion":"retention","grade":2,"rationale":"Subscriber growth and successful programming provide indirect evidence of continuing demand despite repricing. International distribution nonrenewals caused material subscriber losses. Net additions do not establish cohort retention.","evidenceIds":["e2","e5","e6","e7"]},{"criterion":"margin_resilience","grade":2,"rationale":"Reported adjusted EBITDA growth and operating cost savings support mixed resilience, but programming asset write-down effects and broader exclusions complicate interpretation. Higher sports costs limit evidence that pricing protects underlying margins.","evidenceIds":["e14","e15","e8"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Implemented pricing increases demonstrate practical ability to reprice some subscription business. The passages do not disclose company-wide contractual repricing rights, distributor restrictions or advertiser commitments.","evidenceIds":["e12","e4"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":1,"rationale":"The actual $2.8 billion transaction-related payment, initial credit-facility funding and realized transaction dilution indicate substantial capital exposure before acquisition returns are demonstrated. Financing commitments provide funding support, but do not establish disciplined investment outcomes or prove value destruction.","evidenceIds":["e16","e17","e18","e19","e11"]},{"criterion":"incentive_alignment","grade":2,"rationale":"Contractual equity commitments and continuing investor backstop obligations provide concrete financial alignment. Prospective concentrated voting control alongside nonvoting financing creates a counterweight. Executive compensation and vesting evidence is absent.","evidenceIds":["e20","e21","e22"]},{"criterion":"execution","grade":2,"rationale":"Subscriber growth, realized pricing and reported cost savings support operating execution indirectly. Distribution nonrenewals and accounting contributions to adjusted EBITDA temper the result; WBD integration has not been demonstrated.","evidenceIds":["e5","e12","e14","e6","e7","e11"]},{"criterion":"governance","grade":1,"rationale":"Combined CEO and chairman roles, actual related-party supplier payments and a substantial Oracle commitment create governance concerns. Disclosed post-closing voting concentration adds prospective minority-holder risk. The passages do not establish independent safeguards or prove improper conduct.","evidenceIds":["e23","e24","e25","e26","e22"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"38e742e116b18bce7aee2e3fd0d26f6c925c7a2e393a707b8669dc463d4fc028","updatedAt":"2026-10-18T14:56:22.106Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/2041610/000204161026000054/psky-20260630.htm","publishedAt":"2026-08-04","sha256":"f61d3fc1e1721fabf37de61eb010864afb632c902f02a1f16ca952387a483a78","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/2041610/000204161026000026/psky-20260331.htm","publishedAt":"2026-05-04","sha256":"8002f763b1c79aedea35eab2ee59598c87e9b85fe41039900df1a3cf1df086c7","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:21c862966455039216eb629948aff35cd562b12bbcd10bc0e8ee98b8417c4dd9","usage":{"input_tokens":46249,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":3150,"reasoning_output_tokens":160},"basisSupplement":{"previousHash":"a329def2c598e7d27b8b7c1c1f0dca0a1dbc51fdbfc16718a09ab412842be9f6","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; accepted observations and research date retained"}},"signals":[],"sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/2041610/000204161026000054/psky-20260630.htm","publishedAt":"2026-08-04","sha256":"f61d3fc1e1721fabf37de61eb010864afb632c902f02a1f16ca952387a483a78","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/2041610/000204161026000026/psky-20260331.htm","publishedAt":"2026-05-04","sha256":"8002f763b1c79aedea35eab2ee59598c87e9b85fe41039900df1a3cf1df086c7","dateKind":"filed"}],"history":[{"version":4,"updatedAt":"2026-10-18T16:49:32.080Z","verdict":"uncertain","value":null},{"version":3,"updatedAt":"2026-10-18T16:35:43.872Z","verdict":"uncertain","value":null},{"version":2,"updatedAt":"2026-10-18T02:27:49.793Z","verdict":"uncertain","value":null},{"version":1,"updatedAt":"2026-10-18T02:18:02.026Z","verdict":null,"value":null}],"hasRequested":false,"requestStatus":"completed","researchIssue":null,"archivedMoat":null,"scope":"supported_catalog"}