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PUSHDOWN OF ULTIMATE PARENT'S BASIS | 6 Months Ended
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Jun. 30, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] |
PUSHDOWN OF ULTIMATE PARENT'S BASIS | PUSHDOWN OF ULTIMATE PARENT'S BASIS The NAI Transaction resulted in a change in control of our Predecessor, Paramount Global, that established a new accounting basis, which reflects the estimated fair value of Paramount Global as indicated by the NAI Transaction and the Skydance Transactions. The table below presents the calculation of the Ultimate Parent’s basis in Paramount Global as of the date these transactions closed.
Estimated value of NAI Transaction consideration attributable to Paramount Global common stock |  | $2,124 | (a)
Cash paid to stockholders (see Note 10) |  | 4,454 | (b)
Proceeds from PIPE Transaction, net of subscription discount |  | 1,517 |
Outstanding Paramount Global RSU Awards and Paramount Global PSU Awards |  | 80 | (c)
Remaining shares of Paramount Skydance Corporation Class B Common Stock |  | 3,520 | (d)
Paramount Global basis at August 7, 2025 |  | $11,695 |
(a) In the NAI Transaction, the NAI Equity Investors purchased all of the outstanding equity interests of NAI. Based on valuation analyses of NAI’s assets and liabilities, the estimated value attributable to the shares of Paramount Global common stock held by NAI and its subsidiaries is $2.1 billion. This amount increased $107 million from the preliminary estimate included in our quarterly report on Form 10-Q for the third quarter of 2025, which resulted in an increase in Paramount Global’s basis in this amount. (b) Reflects cash paid to holders of Paramount Global Class A Common Stock and Paramount Global Class B Common Stock who elected to receive the Class A Cash Consideration and Class B Cash Consideration of $23.00 per share and $15.00 per share, respectively, in the Skydance Transactions. Such payout was funded by the $6.0 billion PIPE Transaction. (c) Reflects the fair value of outstanding Paramount Global RSU Awards and Paramount Global PSU Awards attributable to employees’ service prior to the Skydance Transactions and the NAI Transaction. The fair value is based on the closing stock price of Paramount Global Class B Common Stock on August 6, 2025 of $11.04 per share. The remaining fair value of outstanding Paramount Global RSU Awards and Paramount Global PSU Awards, which were assumed by Paramount Skydance Corporation and converted into awards of restricted stock units covering an equivalent number of shares of Paramount Skydance Corporation Class B Common Stock are being expensed over their remaining vesting periods. (d) Reflects 318.8 million shares of Paramount Skydance Corporation Class B Common Stock owned by holders of Paramount Global Class A and Paramount Global Class B Common Stock following the Skydance Transactions, other than those held directly or indirectly by NAI or its affiliates, not converted into cash, valued at the closing stock price of Paramount Global Class B Common Stock on August 6, 2025 of $11.04 per share. Certain holders of Paramount Global Class A Common Stock received the Class A Stock Consideration, which resulted in the conversion of 2.0 million shares of Paramount Global Class A Common Stock into approximately 3.1 million shares of Paramount Skydance Corporation Class B Common Stock, based on the exchange ratio of one share of Paramount Global Class A Common Stock to 1.5333 shares of Paramount Skydance Corporation Class B Common Stock. The table below details the preliminary estimated fair values of Paramount Global’s assets, liabilities and noncontrolling interests at the Ultimate Parent’s basis as of August 7, 2025, including measurement period adjustments recorded subsequent to the third quarter of 2025. The impact on our statement of operations in 2026 from the amounts that would have been recognized in the third quarter of 2025 had these measurement period adjustments been recognized as of the acquisition date were not material. The fair values were determined based on valuation techniques that use unobservable inputs (Level 3 in the fair value hierarchy). Significant judgments in these valuations include long-term projections, discount rates, royalty rates, and decay rates. While the determination of the estimated fair values of Paramount Global’s assets, liabilities, and noncontrolling interests was substantially complete as of June 30, 2026, if within one year of the August 7, 2025 closing date we become aware of information that existed as of such closing date that affects these fair values, additional measurement period adjustments may be required.
|  | Allocation of Ultimate Parent’s Basis
|  | Preliminary |  | Measurement Period Adjustments |  | Preliminary, Revised
Assets: |  |  |  |  |  |
Cash and cash equivalents |  | $3,977 |  | $— |  | $3,977
Receivables, net |  | 5,980 |  | (19) |  | 5,961
Programming and other inventory, current |  | 1,970 |  | (66) |  | 1,904
Prepaid expenses and other current assets |  | 1,641 |  | — |  | 1,641
Property and equipment, net (a) |  | 2,118 |  | (2) |  | 2,116
Programming and other inventory, noncurrent (b) |  | 13,599 |  | (456) |  | 13,143
Goodwill (c) |  | 947 |  | 863 |  | 1,810
Intangible assets, net (d) |  | 6,748 |  | 11 |  | 6,759
Operating lease assets |  | 875 |  | 39 |  | 914
Deferred income tax assets, net |  | 1,200 |  | 48 |  | 1,248
Other noncurrent assets |  | 2,470 |  | 14 |  | 2,484
Total assets |  | $41,525 |  | $432 |  | $41,957
Liabilities: |  |  |  |  |  |
Long-term debt (e) |  | $13,619 |  | $— |  | $13,619
Pension and postretirement benefit obligations (f) |  | 1,390 |  | — |  | 1,390
Deferred income tax liabilities, net |  | 306 |  | (186) |  | 120
Operating lease liabilities |  | 1,219 |  | (3) |  | 1,216
Programming obligations (g) |  | 2,017 |  | 209 |  | 2,226
Other liabilities (h) |  | 10,137 |  | 378 |  | 10,515
Total liabilities |  | $28,688 |  | $398 |  | $29,086
Noncontrolling interests (i) |  | 1,249 |  | (73) |  | 1,176
Paramount Global basis at August 7, 2025 |  | $11,588 |  | $107 |  | $11,695
(a) The fair value was determined based on the market approach, which estimates the value based on transactions in the market for comparable assets, or the cost approach, which estimates the value based on the amount required to replace the asset. The fair value reflects an increase to the book value of $635 million principally reflecting incremental fair value of Paramount Global’s owned land and buildings. (b) The fair value was determined based on the income approach, including the multi-period excess earnings method, which estimates the cash flows generated by the asset over its economic life using a discounted cash flow analysis. For certain content, fair value was determined to be equivalent to net book value. The fair value reflects a net decrease to the book value of programming assets of $653 million principally from reductions for programming at our TV Media and Direct-to-Consumer segments offset by an increase to the fair value of our film and television libraries. (c) Goodwill relates principally to the Direct-to-Consumer segment and represents the difference between Paramount Global’s basis and the fair value of its net assets based on the preliminary fair value estimates assumed herein. Goodwill reflects operating synergies between our businesses, as well as anticipated cost savings and is not deductible for tax purposes. During the first and second quarters of 2026, in connection with the finalization of our appraisals and other valuation analyses, we recorded measurement period adjustments that resulted in increases to goodwill of $22 million and $411 million, respectively. These adjustments principally resulted from increases during the year-to-date period of $257 million to programming obligations and $196 million to contingent liabilities, and a decrease of $91 million to programming assets, partially offset by the related deferred tax impact of $140 million. (d) The table below presents our intangible assets by asset class, as well as the valuation method used to determine the estimated fair values, and the related estimated weighted average useful lives. The weighted average useful life of the total intangibles below is 16.6 years.
Intangible assets |  | Values |  | Valuation Method |  | Estimated weighted average straight-line amortization period |
FCC and other broadcasting licenses |  | $2,558 |  | Greenfield discounted cash flow method |  | 30 years |
Trade names |  | $1,521 |  | Relief from Royalty |  | 17.3 years |
Affiliate relationships |  | $1,005 |  | Multi-period excess earnings |  | 2.6 years |
Subscriber relationships |  | $1,080 |  | Replacement cost |  | 2 years |
Franchises |  | $337 |  | Discounted cash flow |  | 10 years |
Developed technology |  | $258 |  | Replacement cost |  | 3 years |
(e) The fair value was determined based on quoted price s in active markets. (f) The fair value was determined based on a remeasurement of the obligation using actuarial assumptions. Key valuation inputs included discount rates and mortality assumptions. (g) “Programming Obligations” include $777 million recorded to establish liabilities for unfavorable contractual arrangements. (h) The estimated fair value of Paramount Global’s contingent liabilities as of August 7, 2025 was $1.6 billion, which relates to the defense and settlement of lawsuits claiming various personal injuries related to exposure to asbestos as well as claims from federal and state environmental regulatory agencies and other entities asserting liability for environmental cleanup costs and related damages (see Claims Related to Former Businesses in Note 14) and other legal contingencies. (i) The fair value was determined based on a discounted cash flow analysis.

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