Paramount Skydance Corporation
05/13/2026 | Press release | Distributed by Public on 05/13/2026 15:17
Explanatory Note (Form 8-K)
Explanatory Note
Paramount Skydance Corporation is filing this Exhibit 99.1 to recast historical segment information for the period from August 7, 2025-December 31, 2025 as set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission ("SEC") on February 25, 2026 ("2025 Form 10-K"). References to "Paramount," the "Company," "we," "us" and "our" refer to Paramount Skydance Corporation and its consolidated subsidiaries, unless the context otherwise requires.
As previously disclosed and as reflected in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, beginning in 2026, we transitioned our reporting structure into three new segments: Studios, Direct-to-Consumer, and TV Media. Under the new segment structure, our Studios segment reflects the combination of the historical Filmed Entertainment segment with the historical TV Media studio operations, consolidating our content creation activities. Additionally, our premium cable channel, Paramount+ with Showtime, which was previously under the TV Media segment, is now managed under the Direct-to-Consumer segment. Concurrent with the change to our segments, we updated our segment expense allocations to better reflect how we operate and make cost decisions across the business. Certain centralized costs that were previously allocated at the segment level are now reported within corporate expenses.
As a result of the new accounting basis established in connection with the Transactions and the NAI Transaction (as defined in our 2025 Form 10-K), our results of operations for the Successor period, which began on August 7, 2025, are not comparable to those of the Predecessor periods. Accordingly, we are required to present Predecessor segment information using our historical segments-Filmed Entertainment, Direct-to-Consumer, and TV Media-while Successor segment results reflect the new segment presentation.
This Exhibit 99.1 provides recast segment information within the following items to reflect the changes made to its segment reporting:
•Part I Item 1. Business
•Part II Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - solely to reflect changes in "Segment Results of Operations"
•Part II Item 8. Financial Statements and Supplementary Data - solely to reflect changes relating to the segment recast in the "Notes to Consolidated Financial Statements," specifically "Note 1 - Description of Business, Basis of Presentation and Summary of Significant Accounting Policies," "Note 5 - Goodwill and Other Intangible Assets," "Note 6 - "Restructuring, Transaction-related Items, and Other Corporate Matters," and "Note 17 - Segment Information"
This Exhibit 99.1 does not reflect changes or events occurring subsequent to the original filing of the 2025 Form 10-K and does not modify or update the disclosures in any way (including as it relates to the merger agreement announced on February 27, 2026 under which Paramount will acquire Warner Bros. Discovery), other than as required to retrospectively recast the change in segment reporting for the period from August 7, 2025-December 31, 2025. Therefore, this Exhibit 99.1 should be read in conjunction with the Company's 2025 Form 10-K as filed, Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, and current reports on Form 8-K.
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