Paramount's Warner Bros. takeover may impact SkyShowtime partnership with Comcast

Paramount’s $110 billion purchase of Warner Bros. Discovery (WBD) is anticipated to cause challenges for its joint venture with Comcast on SkyShowtime, Deadline reports.

Deadline reported that Paramount’s intended acquisition of HBO Max is likely to break the joint venture agreement for SkyShowtime, a streaming platform accessible in 22 European regions with over 9 million subscribers, according to sources.

Paramount+ is accessible in seven European countries without overlapping SkyShowtime. Indeed, Paramount+ retreated from Sweden, Norway, Denmark, and Finland in 2022 to clear the way for SkyShowtime. 

Comcast has not launched Peacock abroad, and SkyShowtime isn't available in the UK, where Sky is owned by the company.

Acquiring HBO Max would dramatically alter this scenario. HBO Max operates in 21 of SkyShowtime’s 22 regions, including significant markets like Spain and the Nordics. Ellison has indicated his plan to merge Paramount+ and HBO Max. “This would contradict the entire joint venture approach,” commented a well-informed individual.

Those familiar with SkyShowtime say Paramount’s WBD acquisition has fostered considerable uncertainty among staff, resulting in questions about how the substantial merger might influence SkyShowtime’s shareholder composition.

Change seems imminent, with sources hinting it might be logical for Paramount to assume sole responsibility for SkyShowtime, or at least become its leading partner. As recently as March, Comcast co-CEO Mike Cavanagh was concentrating on U.S. streaming strategies.

It looks increasingly probable that “A strategic scenario has Paramount taking full charge of the [SkyShowtime] platform, integrating it into its operations in EMEA,” said a source familiar with the conversations.

Paramount is currently pursuing regulatory approval for the WBD acquisition and has stated that it foresees the deal concluding by the third quarter of this year.

Deadline shared last year that Paramount and Comcast have each poured at least $1 billion into SkyShowtime since its inception, though insiders say they do yield a return as the streamer acquires their content, contributing to both subscriptions and ad revenue.

SkyShowtime is home to a collection of series like Sky Studios’ The Day of the Jackal and Taylor Sheridan’s Yellowstone, which have boosted subscription rates. It also features its own productions, including the Swedish series Where the Sun Always Shines, recently casting Game of Thrones star Kristofer Hivju. The operating loss for the streamer was €543.7M ($632M) in 2024, down 3% from 2023, where losses were €561.9M.

Based at Sky’s premises on the outskirts of London, SkyShowtime gathered its 300 employees for an organisational meeting in Budapest this January. Providers noted CEO Monty Sarhan was in high spirits, interacting energetically with staff, highlighting the company’s achievements, and introducing fresh leadership principles.

According to commitments seen by Deadline, pledges included: “Maintain a hopeful and positive attitude even when facing difficulties. Reality is rarely as ideal—or as dire—as we perceive.”

Insiders acknowledge complexity amid shareholder doubts, with some internal staff sentiment metrics falling short of expectations. SkyShowtime insists the employee feedback following the Budapest event was “overwhelmingly positive.”

A Paramount representative commented: “SkyShowtime continues to function under its pre-existing joint venture arrangement. We refrain from discussing speculation concerning shareholder contractual details.”