The news: What should have been Paramount’s last quarter before absorbing Warner Bros. Discovery instead put the company on the back foot. Revenues grew under 1% YoY, starkly highlighting how dependent it is on the merger going through in the face of regulatory interference.

By the numbers:

Revenues: $6.9 billion, +0.93% YoY

DTC revenues: $2.47 billion, +9% YoY

TV media revenues: $3.12 billion, -9% YoY

Paramount+ subscribers: 82 million, +5% YoY

Zooming in: Streaming stood out among dour results as Paramount’s fastest-growing segment, highlighting why the company argues it needs Warner Bros. Discovery to grow. Despite Paramount+ subscribers ticking up, the streaming service still ranks far below others in terms of subscribers and viewership.

Paramount+ subscribers totaled 82 million in the quarter; Warner-owned HBO Max has nearly twice that at 140 million subscribers, as of Q1 2026. A combined 222 million subscriber base would help Paramount better compete with streaming leaders Netflix (325 million subscribers as of January 2026) and Disney+.

The WBD deal: Paramount’s mega-merger has received approval from The Justice Department and praise from White House officials. But many parties have thrown up roadblocks, and a lawsuit from 12 US states risks derailing the deal.

In an op-ed published Tuesday morning before earnings, Paramount CEO David Ellison pushed back against claims that the merger would be anticompetitive, saying a combined HBO Max and Paramount+ would only account for 20% of total consumer viewing time. He argued that the lawsuit was a political battle to stop his ownership of CNN.

But one aspect left unaddressed was the potential impact on advertisers. Consolidated streaming and intellectual property could embolden Paramount-WBD to charge higher CPMs, force advertisers into deals that require commitments to secondary or tertiary platforms, or pressure them to make other concessions. With such a large subscriber base and competitive properties, advertisers may feel they can’t miss out despite the cost.

Implications for marketers: The Paramount-WBD merger is more uncertain than ever. Slow growth shows Paramount’s struggle to become a major competitor if it fails to consolidate. For now, advertisers may be able to expect lower ad costs, but the future remains uncertain as to how advertising with Paramount or WBD will play out.