Paramount Skydance, Comcast Review SkyShowtime Options, Including Potential Exit, Says Report: PSKY Stock Jumps Over 4%, CMCSA Gains 0.3%

• The board of the joint venture informed CEO Monty Sarhan of the strategic review, The Hollywood Reporter reported.
• The service combines programming from NBCUniversal, Sky Studios and Paramount.
• SkyShowtime operates across more than 20 European countries and has several million subscribers.

Comcast Corp. (CMCSA) and Paramount Skydance Corp. (PSKY) are reportedly reviewing strategic options for their European joint-venture streaming service, SkyShowtime. Shutting down the business is among the options being considered, The Hollywood Reporter reported.

At the time of writing on Monday afternoon, PSKY stock had jumped 4.25%, while CMCSA shares had gained 0.3%.

Strategic Review Underway

The joint venture's board informed SkyShowtime CEO Monty Sarhan of the strategic review on Monday in a letter, which Sarhan later shared with employees, according to The Hollywood Reporter.

“SkyShowtime operates in one of the most competitive markets in our industry,” the board said in the letter, according to THR. It added that the market continues to evolve rapidly and remains “highly challenging.”

Against this backdrop, SkyShowtime’s shareholders have begun reviewing strategic options for the business, including a possible wind-down, the letter said.

Several Million Subscribers

SkyShowtime brings together content from NBCUniversal, Sky Studios and Paramount, effectively combining the programming offered by Peacock and Paramount+ in the U.S. 

First announced five years ago, the service operates across more than 20 European countries. Sarhan said in his note to employees that SkyShowtime currently has several million subscribers and is comparable in scale with the market’s most established players.

The board said the review is the start of a dialogue, not the end. SkyShowtime will continue to operate as normal for customers and partners, while every role remains unchanged for now. “Where any proposal could affect employees, we will follow the information and consultation processes required in each of our markets,” the board said. 

PSKY, CMCSA Stocks: Retail Sentiment

On Stocktwits, retail sentiment for PSKY was ‘extremely bearish,’ while message volume was ‘low’ at the time of writing. Retail sentiment for CMCSA was ‘neutral,’ with message volume rated ‘high.’

PSKY shares have lost around 18% year-to-date, while CMCSA stock has declined nearly 15% over the same period. 

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