Paramount Skydance targeting mid-single digit revenue CAGR

Paramount Skydance (PSKY), in its M&A announcement conference call, said it expects the pro forma company to have approximately $79B at closing of net debt. The company says it has already funded the $2.8B termination fee as of last Friday, payable to Netflix (NFLX) under Warner Bros. Discovery’s (WBD) prior merger agreement. Paramount said the deal “gives us the operational efficiencies” to keep its businesses healthier for significantly longer than they would be on a standalone basis, and says it has “no divestitures” planned at this time. Cost savings will not include a reduction in production capacity, the company added. Most synergies will come from non-labor sources. Paramount will be a mid-20% margin company by 2030, and the company is targeting a mid-single digit CAGR for revenue.