Netflix's Newest Rival Has Nearly $70 Billion in Annual Sales. It Also Carries About $82 Billion of Debt.
Skydance (NYSE:SKYD), formed by Paramount's acquisition of Warner Bros. Discovery, reports $70B annual revenue and $82B debt. It has 200M streaming subscribers, surpassing Netflix (NASDAQ:NFLX) in sales. Netflix expects $51B-$51.4B revenue by 2026. Skydance's operating loss was $2.6B in 2025, while Netflix's operating income grew 28% to $13.3B. Skydance plans $6B in cost savings and merging Paramount+ and HBO Max. Netflix's content spending is $20B, with amortization costs rising 10% in 2026.
How this was made
The 30-second read
Why it matters
The merger creates a significant new competitor, influencing valuation and competitive dynamics in the streaming industry.
Market read
The merger establishes a major new streaming player, affecting both companies' stock valuations and the broader sector.
What to watch
Bundling Paramount+ and HBO Max could create a compelling offering, and Netflix's pricing power remains strong.
Background
Paramount closed its purchase of Warner Bros. Discovery, forming Skydance (NYSE:SKYD) with nearly $70B revenue and $82B debt, positioning it as a larger rival to Netflix (NASDAQ:NFLX). The article compares financials, debt loads, and content spending of both companies.
Ticker impact
Netflix faces a newly merged competitor with $70B revenue, prompting analysis of competitive pressure and content cost dynamics.
modest upside as investors view Netflix's earnings strength favorably
Higher operating margin and lower debt give Netflix a defensive advantage.
Market effects
Streaming sector sees heightened competition, potentially compressing margins.
U.S. streaming market dynamics are affected by the new rival.
Large media consolidation impacts the global content landscape.
Counterpoint
Skydance's scale may enable cost synergies and market share gains, outweighing debt concerns.
Key entities
- CompanySkydance
Merged entity of Paramount and Warner Bros. Discovery.
- CompanyNetflix
Leading streaming service facing new competition.
