Paramount’s Warner Bros. Acquisition Could Shake Up Its SkyShowtime Deal With Comcast

BREAKING NEWS: Paramount’s monumental $110 billion deal to acquire Warner Bros. Discovery (WBD) is poised to stir up complications regarding its SkyShowtime venture with Comcast, according to Deadline.

Sources in the industry suggest that Paramount taking control of HBO Max might lead the company to violate its collaborative agreement on SkyShowtime, a streaming service reaching 22 European countries with over 9 million subscribers, insiders report.

Both SkyShowtime and Paramount have refrained from commenting on the matter. Comcast has yet to reply to inquiries for comments.

Deadline has learned that the existing agreement between Paramount and Comcast is structured as a 50-50 partnership, ensuring they do not compete with SkyShowtime in its current markets.

Paramount+ is currently available in seven European countries, strategically avoiding markets where SkyShowtime operates. Notably, Paramount+ exited Sweden, Norway, Denmark, and Finland in 2022 to accommodate SkyShowtime’s launch. Comcast has not introduced Peacock on an international scale, and SkyShowtime does not operate in the UK, where Comcast owns Sky.

The inclusion of HBO Max under Paramount’s umbrella would dramatically alter the landscape since HBO Max is operational in 21 of the 22 markets covered by SkyShowtime, including major areas like Spain and the Nordics. Ellison has hinted at a potential merger of Paramount+ and HBO Max, which could conflict with the joint venture agreement, according to a knowledgeable source.

Insiders close to SkyShowtime express that the Paramount-WBD merger has introduced significant uncertainty among the staff, leading to widespread speculation about potential changes in the ownership and management structures of SkyShowtime.

There is a growing expectation that changes are imminent, with suggestions that Paramount might either take full control of SkyShowtime or at least assume a majority stake. Comcast’s Co-CEO Mike Cavanagh acknowledged in March that the focus remains on their streaming strategy within the U.S.

“It’s increasingly likely that Paramount will take full ownership of the SkyShowtime platform and integrate it with its EMEA operations,” an insider familiar with the discussions revealed.

Paramount is currently pursuing regulatory approvals for the WBD acquisition and anticipates finalizing the deal in the third quarter of this year.

Since its inception, Paramount and Comcast have funneled at least $1 billion into SkyShowtime. Despite this substantial investment, sources confirm that the platform has been profitable by purchasing content from its parent companies and generating income through subscriptions and advertising.

SkyShowtime features a roster of popular series such as Sky Studios’ The Day of the Jackal and Taylor Sheridan’s Yellowstone, both of which have significantly boosted subscription numbers. It also showcases original programming like the Swedish drama Where the Sun Always Shines, featuring Game of Thrones star Kristofer Hivju. Despite its success, the streamer reported a operating loss of €543.7 million ($632 million) in 2024, a slight improvement over the previous year’s loss of €561.9 million.

Located just outside central London, SkyShowtime recently convened its 300 staff members for an all-hands meeting in Budapest this January. According to attendees, CEO Monty Sarhan was notably upbeat, engaging enthusiastically with the team, celebrating recent successes, and introducing new leadership commitments.

A document viewed by Deadline included leadership promises such as maintaining a positive and optimistic outlook even amid challenges, emphasizing that situations are never as extreme as they might seem.

Despite ongoing shareholder uncertainties, internal surveys post-meeting indicated exceptionally positive employee feedback, although some metrics fell below expectations. SkyShowtime maintains that the overall employee response to the event was notably positive.

A spokesperson for Paramount stated, “SkyShowtime continues to operate under the existing joint venture framework. We do not discuss speculations related to contractual issues between shareholders.”