Item 1. Financial Statements.

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; in millions, except per share amounts)

			Successor						Predecessor															Successor						Predecessor
			Period From August 7 - September 30,									Period From July 1 - August 6,						Three Months Ended September 30,						Period From August 7 - September 30,									Period From January 1 - August 6,						Nine Months Ended September 30,
			2025									2025						2024						2025									2025						2024
Revenues			$	4,121								$	2,581					$	6,731					$	4,121								$	16,622					$	21,229
Costs and expenses:
Operating			2,641									1,702						4,342						2,641									11,287						13,745
Programming charges			—									—						—						—									—						1,118
Selling, general and administrative			825									582						1,531						825									3,526						4,772
Depreciation and amortization			226									29						96						226									204						297
Impairment charges			—									—						104						—									157						6,100
Restructuring and transaction-related items			185									188						321						185									454						595
Total costs and expenses			3,877									2,501						6,394						3,877									15,628						26,627
Gain on dispositions			—									—						—						—									35						—
Operating income (loss)			244									80						337						244									1,029						(5,398)
Interest expense			(138)									(85)						(209)						(138)									(516)						(645)
Interest income			24									13						31						24									83						111
Loss from investment			—									—						—						—									—						(4)
Other items, net			(8)									(16)						(39)						(8)									(92)						(126)
Earnings (loss) from continuing operations before income taxes and equity in loss of investee companies			122									(8)						120						122									504						(6,062)
(Provision for) benefit from income taxes			(85)									229						(45)						(85)									79						342
Equity in loss of investee companies, net of tax			(33)									(31)						(59)						(33)									(171)						(221)
Net earnings (loss) from continuing operations			4									190						16						4									412						(5,941)
Net earnings from discontinued operations, net of tax			—									—						5						—									—						14
Net earnings (loss) (Parent and noncontrolling interests)			4									190						21						4									412						(5,927)
Net earnings attributable to noncontrolling interests			(17)									(434)						(20)						(17)									(447)						(39)
Net earnings (loss) attributable to Parent			$	(13)								$	(244)					$	1					$	(13)								$	(35)					$	(5,966)
Amounts attributable to Parent:
Net loss from continuing operations			$	(13)								$	(244)					$	(4)					$	(13)								$	(35)					$	(5,980)
Net earnings from discontinued operations, net of tax			—									—						5						—									—						14
Net earnings (loss) attributable to Parent			$	(13)								$	(244)					$	1					$	(13)								$	(35)					$	(5,966)
Basic net earnings (loss) per common share attributable to Parent:
Net loss from continuing operations			$	(.01)								$	(.36)					$	(.01)					$	(.01)								$	(.05)					$	(9.04)
Net earnings from discontinued operations			$	—								$	—					$	.01					$	—								$	—					$	.02
Net loss			$	(.01)								$	(.36)					$	—					$	(.01)								$	(.05)					$	(9.02)
Diluted net earnings (loss) per common share attributable to Parent:
Net loss from continuing operations			$	(.01)								$	(.36)					$	(.01)					$	(.01)								$	(.05)					$	(9.04)
Net earnings from discontinued operations			$	—								$	—					$	.01					$	—								$	—					$	.02
Net loss			$	(.01)								$	(.36)					$	—					$	(.01)								$	(.05)					$	(9.02)
Weighted average number of common shares outstanding:
Basic			1,098									675						667						1,098									674						663
Diluted			1,098									675						670						1,098									674						663

See notes to consolidated financial statements.

-3-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited; in millions)

			Successor															Predecessor																								Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,												Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
			2025															2025												2024												2025															2025												2024
Net earnings (loss) (Parent and noncontrolling interests)						$	4														$	190											$	21											$	4														$	412											$	(5,927)
Other comprehensive income (loss), net of tax:
Cumulative translation adjustments						26															(50)												88												26															116												(2)
Decrease to net actuarial loss and prior service costs						—															4												13												—															25												33
Other comprehensive income (loss), net of tax (Parent and noncontrolling interests)						26															(46)												101												26															141												31
Comprehensive income (loss)						30															144												122												30															553												(5,896)
Less: Comprehensive income attributable to noncontrolling interests						18															433												21												18															448												38
Comprehensive income (loss) attributable to Parent						$	12														$	(289)											$	101											$	12														$	105											$	(5,934)

See notes to consolidated financial statements.

-4-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited; in millions, except per share amounts)

			Successor															Predecessor
						At															At
			September 30, 2025															December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents						$	3,263														$	2,661
Receivables, net						6,302															6,920
Programming and other inventory						1,776															1,429
Prepaid expenses and other current assets						1,861															1,532
Total current assets						13,202															12,542
Property and equipment, net						2,170															1,566
Programming and other inventory						15,449															13,924
Goodwill						984															10,508
Intangible assets, net						6,566															2,406
Operating lease assets						1,026															1,012
Deferred income tax assets, net						1,200															1,386
Other assets						2,584															2,828
Total Assets						$	43,181														$	46,172
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable						$	689														$	953
Accrued expenses						1,817															2,199
Participants’ share and royalties payable						2,497															2,574
Accrued programming and production costs						1,829															1,720
Deferred revenues						1,615															825
Debt						347															—
Other current liabilities						1,090															1,360
Total current liabilities						9,884															9,631
Long-term debt						13,286															14,501
Participants’ share and royalties payable						1,271															1,310
Pension and postretirement benefit obligations						1,289															1,226
Deferred income tax liabilities, net						221															34
Operating lease liabilities						1,100															1,048
Programming obligations						515															260
Other liabilities						2,344															1,380
Commitments and contingencies (Note 14)
Parent stockholders’ equity:
Class A Common Stock, par value $.001 per share; 55 shares authorized; 32 (2025) and 41 (2024) shares issued						—															—
Class B Common Stock, par value $.001 per share; 5,500 (2025) and 5,000 (2024) shares authorized; 1,066 (2025) and 1,133 (2024) shares issued						1															1
Additional paid-in capital						13,159															33,394
Treasury stock, at cost; — (2025) and 503 (2024) shares of Class B Common Stock						—															(22,958)
Retained earnings (accumulated deficit)						(1,180)															7,487
Accumulated other comprehensive income (loss)						25															(1,604)
Total Parent stockholders’ equity						12,005															16,320
Noncontrolling interests						1,266															462
Total Equity						13,271															16,782
Total Liabilities and Equity						$	43,181														$	46,172

See notes to consolidated financial statements.

-5-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; in millions)

			Successor															Predecessor
			Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
			2025															2025												2024
Operating Activities:
Net earnings (loss) (Parent and noncontrolling interests)						$	4														$	412											$	(5,927)
Less: Net earnings from discontinued operations, net of tax						—															—												14
Net earnings (loss) from continuing operations						4															412												(5,941)
Adjustments to reconcile net earnings (loss) from continuing operations to net cash flow provided by operating activities:
Programming charges						—															—												1,118
Depreciation and amortization						226															204												297
Impairment charges						—															157												6,100
Deferred tax (benefit) provision						27															(401)												(622)
Stock-based compensation						59															113												175
Gain on dispositions						—															(35)												—
Loss from investment						—															—												4
Equity in loss of investee companies, net of tax and distributions						33															179												228
Change in assets and liabilities						(81)															(465)												(775)
Net cash flow provided by operating activities						268															164												584
Investing Activities:
Investments						(1)															(205)												(248)
Capital expenditures						(46)															(134)												(151)
Proceeds from dispositions						5															66												37
Other investing activities						—															(3)												(3)
Net cash flow used for investing activities from continuing operations						(42)															(276)												(365)
Net cash flow provided by investing activities from discontinued operations						—															—												48
Net cash flow used for investing activities						(42)															(276)												(317)
Financing Activities:
Repayment of Skydance credit facility						(720)															—												—
Dividends paid on preferred stock						—															—												(29)
Dividends paid on common stock						(33)															(101)												(102)
Payment of payroll taxes in lieu of issuing shares for stock-based compensation						(63)															(26)												(21)
Payments to noncontrolling interests						(2)															(32)												(120)
Other financing activities						(3)															—												(26)
Net cash flow used for financing activities						(821)															(159)												(298)
Effect of exchange rate changes on cash and cash equivalents						7															70												14
Net decrease in cash and cash equivalents						(588)															(201)												(17)
Cash and cash equivalents at beginning of period (Note 15)						3,851															2,661												2,460
Cash and cash equivalents at end of period (Note 15)						$	3,263														$	2,460											$	2,443

See notes to consolidated financial statements.

-6-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited; in millions)

												Three Months Ended September 30, 2025
						Class A and B Common Stock Outstanding									Additional Paid-In Capital									Treasury Stock						Retained Earnings (Accumulated Deficit)												Accumulated Other Comprehensive Income (Loss)												Total Paramount Stockholders’ Equity												Noncontrolling Interests												Total Equity
												(Shares)
June 30, 2025 (Predecessor)												674						$	1					$	33,455					$	(22,958)								$	7,626											$	(1,419)											$	16,705											$	406								$	17,111
Stock-based compensation activity												—						—						24						—									—												—												24												—									24
Noncontrolling interests												—						—						—						—									—												—												—												34									34
Net earnings (loss)												—						—						—						—									(244)												—												(244)												434									190
Other comprehensive loss												—						—						—						—									—												(45)												(45)												(1)									(46)
Cancellation of treasury stock (Note 10)												—						—						(22,958)						22,958									—												—												—												—									—
August 6, 2025 (Predecessor)												674						1						10,521						—									7,382												(1,464)												16,440												873									17,313
Adjustments to Paramount Global’s basis (Note 2)												—						—						(451)						—									(7,382)												1,464												(6,369)												376									(5,993)
PIPE Transaction (Note 10)												108						—						1,517						—									—												—												1,517												—									1,517
Addition of Skydance												314						—						1,589						—									(1,167)												—												422												—									422
August 7, 2025 (Successor)												1,096						1						13,176						—									(1,167)												—												12,010												1,249									13,259
Stock-based compensation activity												2						—						41						—									—												—												41												—									41
Common stock dividends												—						—						(58)						—									—												—												(58)												—									(58)
Noncontrolling interests												—						—						—						—									—												—												—												(1)									(1)
Net earnings (loss)												—						—						—						—									(13)												—												(13)												17									4
Other comprehensive income												—						—						—						—									—												25												25												1									26
September 30, 2025 (Successor)												1,098						$	1					$	13,159					$	—								$	(1,180)											$	25											$	12,005											$	1,266								$	13,271

												Nine Months Ended September 30, 2025
						Class A and B Common Stock Outstanding									Additional Paid-In Capital									Treasury Stock						Retained Earnings (Accumulated Deficit)												Accumulated Other Comprehensive Income (Loss)												Total Paramount Stockholders’ Equity												Noncontrolling Interests												Total Equity
												(Shares)
December 31, 2024 (Predecessor)												671						$	1					$	33,394					$	(22,958)								$	7,487											$	(1,604)											$	16,320											$	462								$	16,782
Stock-based compensation activity												3						—						85						—									—												—												85												—									85
Common stock dividends												—						—						—						—									(70)												—												(70)												—									(70)
Noncontrolling interests												—						—						—						—									—												—												—												(37)									(37)
Net earnings (loss)												—						—						—						—									(35)												—												(35)												447									412
Other comprehensive income												—						—						—						—									—												140												140												1									141
Cancellation of treasury stock (Note 10)												—						—						(22,958)						22,958									—												—												—												—									—
August 6, 2025 (Predecessor)												674						1						10,521						—									7,382												(1,464)												16,440												873									17,313
Adjustments to Paramount Global’s basis (Note 2)												—						—						(451)						—									(7,382)												1,464												(6,369)												376									(5,993)
PIPE Transaction (Note 10)												108						—						1,517						—									—												—												1,517												—									1,517
Addition of Skydance												314						—						1,589						—									(1,167)												—												422												—									422
August 7, 2025 (Successor)												1,096						1						13,176						—									(1,167)												—												12,010												1,249									13,259
Stock-based compensation activity												2						—						41						—									—												—												41												—									41
Common stock dividends												—						—						(58)						—									—												—												(58)												—									(58)
Noncontrolling interests												—						—						—						—									—												—												—												(1)									(1)
Net earnings (loss)												—						—						—						—									(13)												—												(13)												17									4
Other comprehensive income												—						—						—						—									—												25												25												1									26
September 30, 2025 (Successor)												1,098						$	1					$	13,159					$	—								$	(1,180)											$	25											$	12,005											$	1,266								$	13,271

See notes to consolidated financial statements.

-7-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Continued)

(Unaudited; in millions)

												Three Months Ended September 30, 2024
						Class A and B Common Stock Outstanding									Additional Paid-In Capital									Treasury Stock						Retained Earnings												Accumulated Other Comprehensive Loss												Total Paramount Stockholders’ Equity												Noncontrolling Interests												Total Equity
(Predecessor)												(Shares)
June 30, 2024												667						$	1					$	33,299					$	(22,958)								$	7,779											$	(1,624)											$	16,497											$	449								$	16,946
Stock-based compensation activity												—						—						65						—									—												—												65												—									65
Common stock dividends												—						—						—						—									(35)												—												(35)												—									(35)
Noncontrolling interests												—						—						—						—									—												—												—												(23)									(23)
Net earnings												—						—						—						—									1												—												1												20									21
Other comprehensive income												—						—						—						—									—												100												100												1									101
September 30, 2024												667						$	1					$	33,364					$	(22,958)								$	7,745											$	(1,524)											$	16,628											$	447								$	17,075

			Nine Months Ended September 30, 2024
			Preferred Stock Outstanding									Class A and B Common Stock Outstanding									Additional Paid-In Capital									Treasury Stock						Retained Earnings												Accumulated Other Comprehensive Loss												Total Paramount Stockholders’ Equity												Noncontrolling Interests												Total Equity
(Predecessor)			(Shares)									(Shares)
December 31, 2023			10						$	—		653						$	1					$	33,210					$	(22,958)								$	13,829											$	(1,556)											$	22,526											$	524								$	23,050
Stock-based compensation activity			—						—			2						—						154						—									—												—												154												—									154
Stock conversion			(10)						—			12						—						—						—									—												—												—												—									—
Preferred stock dividends			—						—			—						—						—						—									(14)												—												(14)												—									(14)
Common stock dividends			—						—			—						—						—						—									(104)												—												(104)												—									(104)
Noncontrolling interests			—						—			—						—						—						—									—												—												—												(115)									(115)
Net earnings (loss)			—						—			—						—						—						—									(5,966)												—												(5,966)												39									(5,927)
Other comprehensive income (loss)			—						—			—						—						—						—									—												32												32												(1)									31
September 30, 2024			—						$	—		667						$	1					$	33,364					$	(22,958)								$	7,745											$	(1,524)											$	16,628											$	447								$	17,075

See notes to consolidated financial statements.

-8-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular dollars in millions, except per share amounts)

1) DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business—Paramount Skydance Corporation is a global media and entertainment company with a portfolio that includes Paramount Pictures, Paramount Television, CBS, CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Showtime, Paramount+, Pluto TV, and Skydance's Animation, Film, Television, Interactive/Games, and Sports divisions. The Company is comprised of three segments: TV Media, Direct-to-Consumer, and Filmed Entertainment (see Note 13). We are in the process of transitioning our reporting structure into three new segments: Studios, Direct-to-Consumer, and TV Media, which will be completed and reflected in our Quarterly Report on Form 10-Q for the first quarter of 2026. References to “Paramount,” the “Company,” “we,” “us” and “our” refer to Paramount Skydance Corporation and its consolidated subsidiaries, unless the context otherwise requires.

The NAI Transaction—On August 7, 2025, pursuant to a purchase and sale agreement dated July 7, 2024, certain affiliates of investors in Skydance Media, LLC (“Skydance”), comprised of entities controlled by the Ellison Family (as defined below), and affiliates of RedBird Capital Partners (collectively the “NAI Equity Investors”), purchased all of the outstanding equity interests of National Amusements, Inc. (“NAI”), which had previously been the controlling stockholder of Paramount Global, from the shareholders of NAI (the “NAI Transaction”).

The Transactions—Also on August 7, 2025 (the “Closing Date”), following the completion of the NAI Transaction and pursuant to the Transaction Agreement dated as of July 7, 2024, Paramount Global and Skydance became wholly-owned subsidiaries of Paramount Skydance Corporation (the transactions contemplated by the Transaction Agreement, the “Transactions”). Paramount Skydance Corporation was formerly known as New Pluto Global, Inc., which was formed on June 3, 2024 for purposes of consummating the Transactions and was a wholly-owned direct subsidiary of Paramount Global prior to the closing of the Transactions when, through a series of mergers contemplated by the Transaction Agreement, it became the holding company of Paramount Global and Skydance.

Concurrent with the NAI Transaction, the NAI Equity Investors and certain other affiliates of investors in Skydance made an investment of $6.0 billion into Paramount Skydance Corporation (the “PIPE Transaction”) in exchange for 400 million newly issued shares of Class B common stock of Paramount Skydance Corporation (“Paramount Skydance Corporation Class B Common Stock”) for a purchase price of $15.00 per share, and the NAI Equity Investors also received warrants to purchase 200 million shares of Paramount Skydance Corporation Class B Common Stock at an initial exercise price of $30.50 per share (subject to customary anti-dilution adjustments), which expire five years after issuance. $4.45 billion of the PIPE Transaction investment was used to fund the cash-stock election discussed below and $1.52 billion of cash was provided to the Company.

The Transactions also included: (1) a transaction pursuant to which each outstanding Skydance membership unit held by Skydance investors and each Skydance Phantom Unit was converted into the right to receive the applicable portion of 316.7 million shares of Paramount Skydance Corporation Class B Common Stock (313.8 million shares after reduction in connection with certain tax withholding requirements), and (2) a cash-stock election offered to holders of Paramount Global common stock pursuant to which (a) shares of Paramount Global Class A Common Stock held by stockholders other than NAI or its subsidiaries were converted, at the stockholders’ election, into the right to receive either $23.00 in cash (“Class A Cash Consideration”) or 1.5333 shares of Paramount Skydance Corporation Class B Common Stock (“Class A Stock Consideration”), and (b) shares of Paramount Global Class B Common Stock held by stockholders other than NAI or its subsidiaries, the NAI Equity Investors and certain other affiliates of investors in Skydance referred to above were converted, at the stockholders’ election, into the right to receive either $15.00 in cash (“Class B Cash Consideration”), subject to proration, or one share of Paramount Skydance Corporation Class B Common Stock (“Class B Stock Consideration”). The shares of Paramount Class A Common Stock held by NAI and its subsidiaries converted into shares of Class A common stock, par value $0.001 per share. Shares of Paramount Global Class A Common Stock for which elections to receive Class A Cash

-9-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Consideration or Class A Stock Consideration were not made or were validly revoked were automatically converted into Class A Stock Consideration. Shares of Paramount Global Class B Common Stock for which elections to receive Class B Cash Consideration were not made or were validly revoked were converted automatically into one share of Paramount Skydance Corporation Class B Common Stock. See Note 10.

Shares of Paramount Skydance Corporation Class B Common Stock now trade on the Nasdaq Stock Market LLC (“Nasdaq”) under the ticker symbol “PSKY”. All shares of Paramount Global Class A Common Stock and Class B Common Stock have been delisted from Nasdaq and have been cancelled and ceased to exist.

Holders of shares of Class A common stock of Paramount Skydance Corporation (“Paramount Skydance Corporation Class A Common Stock”) are entitled to one vote per share with respect to all matters on which the holders of Paramount Skydance Corporation common stock are entitled to vote. Holders of Paramount Skydance Corporation Class B Common Stock do not have voting rights. Following the closing of the Transactions and the NAI Transaction, NAI, which was renamed Harbor Lights Entertainment, Inc., and its subsidiaries held 100.0% of the Paramount Skydance Corporation Class A Common Stock. Accordingly, entities controlled by the Ellison Family (as defined below) indirectly hold approximately 77.5% of the Paramount Skydance Corporation Class A Common Stock through their collective approximate 77.5% ownership interest in Harbor Lights Entertainment, Inc., and as a result the Ellison Family is the controlling stockholder of Paramount. For the purpose of determining the controlling ownership of Paramount, the Ellison family is comprised of Lawrence Ellison and David Ellison (the “Ellison Family”). David Ellison is the son of Lawrence Ellison, and Lawrence Ellison and David Ellison are accordingly considered immediate family members. The Ellison Family either individually or through ownership of various entities are collectively the ultimate parent of Paramount (“Ultimate Parent”).

Pushdown of Ultimate Parent’s Basis— At the time Paramount Global and Skydance became subsidiaries of Paramount Skydance Corporation, the Ellison Family controlled both Paramount Global and Skydance, and as a result, this transaction has been accounted for as a transaction between entities under common control. As a transaction between entities under common control, the net assets were combined at the Ultimate Parent’s basis, which for Paramount Global was deemed to be the estimated fair value as of August 7, 2025, the date of the closing of the NAI Transaction, which was the point at which the Ellison Family obtained control of Paramount Global (see Note 2). As a result, the net assets of Paramount Global were recorded at their fair value as of this date. Since the net assets of Skydance were already at the Ultimate Parent’s basis, no adjustment to the fair value of net assets was necessary, and Skydance was combined with Paramount Global’s net assets at the Ultimate Parent’s basis as of this date.

Our consolidated financial statements and footnote disclosures are presented in two distinct periods to indicate the pushdown of the Ultimate Parent’s basis, which resulted in a new basis of accounting. The periods prior to the closing of the Transactions include only Paramount Global and are identified as “Predecessor”, and the periods beginning on August 7, 2025 reflect Paramount Skydance Corporation and are identified as “Successor”. Due to the application of pushdown accounting, the results of operations, financial position and cash flows are not comparable between the Successor and Predecessor periods. Paramount Global has been identified as the predecessor entity to Paramount Skydance Corporation based on the relative size and fair value of Paramount Global and Skydance, and the fact that Paramount Global was an existing publicly traded company prior to the completion of the Transactions. No single factor was the sole determinant in the overall conclusion that Paramount Global is the predecessor; rather all factors were considered in arriving at such conclusion.

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

*Basis of Presentation—*The accompanying unaudited consolidated financial statements have been prepared on a basis consistent with accounting principles generally accepted in the United States (“U.S. GAAP” or “GAAP”) for interim financial information and pursuant to the rules of the Securities and Exchange Commission. These financial statements should be read in conjunction with the more detailed financial statements and notes thereto included in the Annual Report on Form 10-K of our Predecessor, Paramount Global, for the year ended December 31, 2024.

In the opinion of management, the accompanying unaudited consolidated financial statements reflect all adjustments, consisting only of normal and recurring adjustments, necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. Certain previously reported amounts have been reclassified to conform to the current presentation.

*Use of Estimates—*The preparation of our consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may vary from these estimates under different assumptions or conditions.

*Change in Accounting Estimate—*FCC licenses have historically been classified as indefinite-lived intangible assets. However, as a result of sustained declines in industry projections, including in long-term growth rate assumptions, we reassessed this classification and determined that FCC licenses would be classified as finite-lived intangible assets. Accordingly, during the third quarter of 2025, we began amortizing FCC licenses on a straight-line basis over a period of 30 years. As of September 30, 2025, the unamortized FCC licenses balance was $2.49 billion, which was included within “Intangible assets, net” on the Consolidated Balance Sheet.

*Net Earnings (Loss) per Common Share—*Basic net earnings (loss) per share (“EPS”) is based upon net earnings (loss) available to common stockholders divided by the weighted average number of common shares outstanding during the period. Net earnings (loss) available to common stockholders is calculated as net earnings (loss) from continuing operations or net earnings (loss), as applicable, adjusted to include a reduction for dividends recorded during the applicable Predecessor period on Paramount Global’s 5.75% Series A Mandatory Convertible Preferred Stock (“Mandatory Convertible Preferred Stock”). On April 1, 2024, all outstanding shares of Mandatory Convertible Preferred Stock were automatically and mandatorily converted into shares of Paramount Global Class B Common Stock. The final dividend on the Mandatory Convertible Preferred Stock was declared during the first quarter of 2024 and paid on April 1, 2024 (see Note 10).

Weighted average shares for diluted EPS reflect the effect of the assumed exercise of stock options and warrants, and vesting of restricted share units (“RSUs”) or performance share units only in the periods in which such effect would have been dilutive. In periods prior to the preferred stock conversion described above, diluted EPS also reflected the effect of the assumed conversion of preferred stock, when dilutive, which included the issuance of common shares in the weighted average number of shares and excluded the above-mentioned preferred stock dividend adjustment to net earnings (loss) available to common stockholders.

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

The tables below present a reconciliation of weighted average shares used in the calculation of basic and diluted EPS.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
(in millions)			2025															2025												2024
Weighted average shares for basic EPS						1,098															675												667
Dilutive effect of shares issuable under stock-based compensation plans						—															—												3
Weighted average shares for diluted EPS						1,098															675												670

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
(in millions)															2025															2025												2024
Weighted average shares for basic EPS																		1,098															674												663
Dilutive effect of shares issuable under stock-based compensation plans																		—															—												—
Weighted average shares for diluted EPS																		1,098															674												663

The tables below present stock options, RSUs, and warrants excluded from the calculations of diluted EPS. In each period except for the three months ended September 30, 2024, all outstanding stock options, RSUs, and warrants were excluded because their inclusion would have been antidilutive because we reported a net loss.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
(in millions)			2025															2025												2024
Stock options and RSUs						66															32												10
Warrants						200															—												—

			Successor															Predecessor
			Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
(in millions)			2025															2025												2024
Stock options and RSUs						66															33												30
Warrants						200															—												—

Also excluded from the calculation of diluted EPS for the nine months ended September 30, 2024 (Predecessor) prior to the preferred stock conversion discussed above, was the effect of the assumed conversion of 10 million shares of Paramount Global’s Mandatory Convertible Preferred Stock into shares of common stock because the impact would have been antidilutive.

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Because the impact of the assumed conversion of Paramount Global’s Mandatory Convertible Preferred Stock would have been antidilutive, net loss from continuing operations and net loss used in our calculations of diluted EPS for the nine months ended September 30, 2024 (Predecessor) included a reduction of $14 million for the preferred stock dividends recorded during the period. Net loss from continuing operations and net loss used in the calculations of basic and diluted EPS were $5.99 billion and $5.98 billion, respectively.

Accounting Pronouncements Not Yet Adopted

Income Taxes

In December 2023, the Financial Accounting Standards Board (“FASB”) issued guidance enhancing annual income tax disclosures. Under this guidance, certain enhancements to the effective tax rate reconciliation disclosure are required, including the disclosure of both percentages and amounts, specific categories, and additional information for reconciling items meeting a quantitative threshold defined by the guidance. Additionally, disclosures of income taxes paid and income tax expense must be disaggregated by federal, state and foreign taxes, with income taxes paid further disaggregated for individual jurisdictions that represent 5 percent or more of total income taxes paid. The guidance is effective for us for the year ended December 31, 2025, and may be applied either prospectively or retrospectively.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued guidance requiring disclosure in the notes to the financial statements of the disaggregation of relevant expense captions on the income statement into specified expense categories, including employee compensation, as well as disclosure of total selling expenses. The guidance is effective for us for the year ended December 31, 2027, and for all interim and annual periods thereafter, and may be applied either prospectively or retrospectively.

Internal-use Software Costs

In September 2025, the FASB issued updated guidance on the recognition and disclosure of internal-use software costs. This guidance eliminates capitalization based on software development stages and requires that capitalization of internal-use software development costs begin when management has authorized and committed to funding the software project and it is probable the project will be completed and the software will be used to perform its intended function. The guidance is effective for us for the year ended December 31, 2028, including interim periods within that year, and may be adopted prospectively, retrospectively, or using a modified transition approach for projects in process.

-13-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

2) 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 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						$	2,017		(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						$	11,588

(a) In the NAI Transaction, the NAI Equity Investors purchased all of the outstanding equity interests of NAI. Based on preliminary 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 approximately $2.0 billion. The fair value estimates assumed herein may differ materially based on the finalization of appraisals and other valuation analyses.

(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 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 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 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 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.

-14-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

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. 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. We continue to evaluate these estimated fair values, in particular those related to programming, intangible assets, taxes, and contingencies, which may differ materially based upon the finalization of appraisals and other valuation analyses, which are expected no later than one year from the Closing Date.

			Preliminary Allocation of Ultimate Parent’s Basis
Assets:
Cash and cash equivalents						$	3,977
Receivables, net						5,980
Programming and other inventory, current						1,970
Prepaid expenses and other current assets						1,641
Property and equipment, net (a)						2,118
Programming and other inventory, noncurrent (b)						13,599
Goodwill (c)						947
Intangible assets, net (d)						6,748
Operating lease assets						875
Deferred income tax assets, net						1,200
Other noncurrent assets						2,470
Total assets						$	41,525
Liabilities:
Long-term debt (e)						$	13,619
Pension and postretirement benefit obligations (f)						1,390
Deferred income tax liabilities, net						306
Operating lease liabilities						1,219
Programming obligations (g)						2,017
Other liabilities (h)						10,137
Total liabilities						$	28,688
Noncontrolling interests (i)						1,249
Paramount Global basis at August 7, 2025						$	11,588

(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 $637 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 $131 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 substantially all relates 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.

(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.

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Intangible assets						Values						Valuation Method						Estimated weighted average straight-line amortization period
FCC and other broadcasting licenses						$	2,555					Greenfield Discounted Cash flow method						30 years
Trade names						$	1,513					Relief from Royalty						17.3 years
Affiliate relationships						$	1,016					Multi-period excess earnings						2.6 years
Subscriber relationships						$	1,080					Replacement cost						2 years
Franchises						$	326					Discounted cash flow						10 years
Developed technology						$	258					Replacement cost						3 years

(e) The fair value was determined based on quoted prices 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 $568 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 $1.3 billion, which relate principally 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 Note 14).

(i) The fair value was determined based on a discounted cash flow analysis.

3) PROGRAMMING AND OTHER INVENTORY

The following table presents our programming and other inventory at September 30, 2025 and December 31, 2024, grouped by type and predominant monetization strategy.

			Successor																		Predecessor
						At																		At
			September 30, 2025																		December 31, 2024
Film Group Monetization:
Licensed program rights, including prepaid sports rights						$	3,058																	$	3,168
Produced television and film programming:
Released						9,128																		6,847
In process and other						2,124																		2,292
Individual Monetization:
Produced television and film programming:
Released						938																		1,823
Completed, not yet released						126																		42
In process and other						1,826																		1,155
Home entertainment						6																		26
Game development						19																		—
Total programming and other inventory						17,225																		15,353
Less current portion						1,776																		1,429
Total noncurrent programming and other inventory						$	15,449																	$	13,924

-16-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

The following tables present amortization of our television and film programming and production costs, which is included within “Operating expenses” on the Consolidated Statements of Operations.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024
Licensed program rights						$	743														$	333											$	1,068
Produced television and film programming, and acquired libraries:
Individual monetization						$	264														$	125											$	405
Film group monetization						$	610														$	522											$	1,158

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024
Licensed program rights																		$	743														$	2,961											$	3,916
Produced television and film programming, and acquired libraries:
Individual monetization																		$	264														$	810											$	1,073
Film group monetization																		$	610														$	3,193											$	3,498

Programming Charges (Predecessor)

Programming charges totaling $1.12 billion recorded during the first quarter of 2024 were the result of major changes in content strategy. These changes, which were made in connection with a shift to a global programming strategy, resulted in the removal of significant levels of content from our platforms, abandonment of development projects, and termination of programming agreements, particularly internationally, including locally-produced content and domestic titles that no longer aligned with a shift to a global programming strategy. The removal of this content from our platforms was a triggering event that required an assessment of whether the affected programming assets were impaired. This impairment review compared the current carrying value of each title with its fair value, which considered (1) that the titles were no longer being utilized on our platforms and there was no intention to use the titles on our platforms in the future and (2) the estimated future cash flows associated with any anticipated licensing of the titles to third parties, which was minimal. The programming charges were comprised of $909 million for the impairment of content to its estimated fair value, as well as $209 million for development cost write-offs and contract termination costs.

-17-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

4) RESTRUCTURING, TRANSACTION-RELATED ITEMS, AND IMPAIRMENT

During the periods presented we recorded the following restructuring charges and transaction-related items.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024
Restructuring charges (a)						$	185														$	13											$	288
Transaction-related items						—															175												33
Restructuring and transaction-related items						$	185														$	188											$	321

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024
Severance (a)																		185															$	190											$	513
Exit costs																		—															65												31
Restructuring charges																		185															255												544
Transaction-related items																		—															199												51
Restructuring and transaction-related items																		$	185														$	454											$	595

(a) Severance costs include the accelerated vesting of stock-based compensation.

Restructuring Charges

Restructuring charges for the period from August 7 - September 30, 2025 (Successor) were comprised of severance costs of $185 million, principally associated with actions to align the business around our strategic priorities following the Transactions, including costs related to a plan under which severance payments are being provided to certain eligible employees who voluntarily elected to participate.

Restructuring charges for the Predecessor periods from July 1 - August 6, 2025 and January 1 - August 6, 2025 included severance costs of $13 million and $190 million, respectively, primarily associated with strategic changes in the global workforce in order to streamline the organization. Restructuring charges for the three and nine months ended September 30, 2024 (Predecessor) included severance costs of $288 million and $513 million, respectively, associated with strategic changes in our global workforce, and for the nine-month period also related to the exit of Paramount Global’s former CEO and other management changes.

Additionally, during the period from January 1 - August 6, 2025 (Predecessor) and the nine months ended September 30, 2024 (Predecessor), we recorded exit costs of $65 million and $31 million, respectively, primarily for the impairment of lease assets that we ceased use of in connection with initiatives to reduce our real estate footprint and create cost synergies. The impairments were primarily the result of a decline in market conditions since the inception of these leases and reflect the difference between the estimated fair values, which were determined based on the expected future cash flows of the lease assets, and the carrying values.

The following is a rollforward of our restructuring severance liability, which is recorded in “Other current liabilities” and “Other liabilities” on the Consolidated Balance Sheets, and is expected to be substantially paid by the end of 2026.

-18-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

															2025 Activity (Predecessor)																					2025 Activity (Successor)
			Balance at December 31, 2024												Charges (a)						Payments and other															Charges (a)						Payments and other												Balance at September 30, 2025
TV Media						$	156								$	141								$	(98)											$	74								$	(32)											$	241
Direct-to-Consumer						36									5									(27)												9									(4)												19
Filmed Entertainment						46									17									(28)												43									(6)												72
Corporate						111									13									(71)												29									(11)												71
Total						$	349								$	176								$	(224)											$	155								$	(53)											$	403

(a) Excludes stock-based compensation expense of $30 million and $14 million for the periods from August 7 - September 30, 2025 (Successor) and January 1 - August 6, 2025 (Predecessor), respectively.

Transaction-Related Items

During the Predecessor periods from July 1 - August 6, 2025 and January 1 - August 6, 2025, we recorded $175 million and $199 million, respectively principally for banking, legal, advisory, and other professional fees relating to the Transactions, and transaction awards that became payable to eligible employees upon closing. During the three and nine months ended September 30, 2024, we recorded transaction-related costs of $33 million and $51 million, respectively associated with legal and advisory fees related to the Transactions.

Interim Impairment Testing (Predecessor)

*FCC Licenses—*For the second quarter of 2025 (Predecessor), as a result of recent declines in industry projections, interim impairment tests were necessary for six markets in which we hold FCC licenses. We consider each geographic market, which is comprised of all of our television stations within that geographic market, to be a single unit of accounting because the FCC licenses at this level represent their highest and best use, and accordingly FCC licenses were tested for impairment at the geographic market level. The FCC licenses impairment tests were performed using the Greenfield Discounted Cash Flow Method, which estimates the fair values of FCC licenses by valuing a hypothetical start-up station in the relevant market by adding discounted cash flows over a five-year build-up period to a residual value. The assumptions for the build-up period include industry projections of overall market revenues; the start-up station’s operating costs and capital expenditures, which are based on both industry and internal data; and average market share. The discount rate is determined based on the industry and market-based risk of achieving the projected cash flows, and the residual value is calculated using a long-term growth rate, which is based on projected industry projections and long-range inflation. The discount rate and the long-term growth rate were 7.5% and (2)%, respectively.

The impairment tests indicated that the estimated fair values of FCC licenses in each of the six markets tested were below their respective carrying values. Accordingly, an impairment charge was recorded during the second quarter of 2025 of $157 million to write down the carrying values of these FCC licenses to their aggregate estimated fair value.

During the second quarter of 2024, interim impairment tests were performed for eight markets in which we hold FCC licenses. The tests indicated that the estimated fair values of FCC licenses in two of the eight markets were below their respective carrying values. Accordingly, an impairment charge of $15 million was recorded to write down the carrying values of these FCC licenses to their estimated fair values. The impairment charges in each year were recorded within the TV Media segment.

During the third quarter of 2024, as a result of a further decline in industry-projected long-term growth rates, an interim impairment test was performed for each of our 14 markets with FCC license book values. The tests indicated that the estimated fair values of FCC licenses in five of the 14 markets were below their respective

-19-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

carrying values. Accordingly, an impairment charge of $104 million was recorded during the three months ended September 30, 2024, to write down the carrying values of FCC licenses in these five markets to their aggregate estimated fair value. The impairment charge, which was recorded within the TV Media segment, was primarily the result of a reduction in the long-term growth rate utilized in the impairment tests to (2)%. The estimated fair values of FCC licenses in the remaining nine markets exceeded their carrying values by more than 10%.

*Goodwill—*For the second quarter of 2024, the relevant factors that could impact the fair value of Paramount Global’s reporting units were assessed, including indicators in the linear affiliate marketplace and the estimated total company market value indicated by the Transactions and the NAI Transaction announced on July 7, 2024. Based on this assessment, an interim goodwill impairment test was performed for each reporting unit. The goodwill impairment test for the Cable Networks reporting unit indicated that an impairment charge of $5.98 billion was required, which represented the goodwill balance of the reporting unit prior to the impairment test. The impairment charge, which was recorded within the TV Media segment, resulted from a downward adjustment to the reporting unit’s expected cash flows, primarily because of the linear affiliate market indicators noted above, and the estimated total company market value indicated by the Transactions and the NAI Transaction.

5) RELATED PARTIES

The Ellison Family (Successor)

Following the closing of the Transactions and the NAI Transaction, the Ellison Family indirectly holds approximately 77.5% of our voting Class A Common Stock through their collective approximate 77.5% ownership interest in Harbor Lights Entertainment, Inc. (f/k/a National Amusements, Inc.), and as a result is the controlling stockholder of Paramount (see Note 1). In addition, in connection with the PIPE transaction, the NAI Equity Investors (including entities controlled by the Ellison Family) received warrants to purchase a total of 200 million shares of Paramount Skydance Corporation Class B Common Stock (of which entities controlled by the Ellison Family received warrants to purchase a total of 155 million shares) at an initial exercise price of $30.50 per share (subject to customary anti-dilution adjustments), which expire five years after issuance. The Ellison Family is comprised of Lawrence Ellison and David Ellison. David Ellison is the son of Lawrence Ellison, and Lawrence Ellison and David Ellison are accordingly considered immediate family members. David Ellison is the CEO of Paramount and the Chairman of our Board of Directors.

Lawrence Ellison is the Chairman and a major stockholder of Oracle Corporation (“Oracle”). We have several multi-year Software as a Service (SaaS) agreements with Oracle, principally for finance and human resources, as well as Oracle software support agreements and database licenses used by various applications. The total payments related to these arrangements from August 7 - September 30, 2025 were $2 million.

In addition, we have lease agreements under which the lessor is an entity owned and controlled by Lawrence Ellison. At September 30, 2025, the total liability associated with these leases was $191 million. During the period from August 7 - September 30, 2025 we recorded lease costs associated with these leases totaling $4 million.

The Ellison Family has investments in other entities over which they have control or can exert significant influence, which as a result, are related parties to us. We did not have any material transactions with these entities.

-20-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Other Related Parties

In the ordinary course of business, we are involved in transactions with our equity method investees, primarily for the licensing of television and film programming. The following tables present the amounts recorded in our consolidated financial statements related to these transactions.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025															2025												2024
Revenues						$	40														$	28											$	40
Operating costs (a)						$	30														$	22											$	37

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024
Revenues																		$	40														$	198											$	177
Operating costs (a)																		$	30														$	82											$	74

(a) Each period includes costs expensed as operating expenses and costs capitalized in programming assets.

			Successor															Predecessor
			At															At
			September 30, 2025															December 31, 2024
Receivables, net						$	178														$	190
Other assets (Receivables, noncurrent)						$	96														$	82

Through the normal course of business, we are involved in other transactions with related parties that have not been material in any of the periods presented.

6) REVENUES

The tables below present our revenues disaggregated into categories based on the nature of such revenues. See Note 13 for revenues by segment disaggregated into these categories.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024
Revenues by Type:
Advertising						$	1,280														$	664											$	2,174
Affiliate and subscription						2,027															1,400												3,215
Theatrical						39															73												108
Licensing and other						775															444												1,234
Total Revenues						$	4,121														$	2,581											$	6,731

-21-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024
Revenues by Type:
Advertising																		$	1,280														$	5,329											$	7,521
Affiliate and subscription																		2,027															8,242												9,847
Theatrical																		39															475												399
Licensing and other																		775															2,576												3,462
Total Revenues																		$	4,121														$	16,622											$	21,229

Receivables

Reserves for accounts receivable reflect our expected credit losses based on historical experience as well as current and expected economic conditions and industry trends. At September 30, 2025 (Successor) and December 31, 2024 (Predecessor), our allowance for credit losses was $97 million and $125 million, respectively.

Included in “Other assets” on the Consolidated Balance Sheets are noncurrent receivables of $797 million and $1.03 billion at September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively. Noncurrent receivables primarily relate to revenues recognized under long-term content licensing arrangements. Revenues from the licensing of content are recognized at the beginning of the license period in which programs are made available to the licensee for exhibition, while the related cash is generally collected over the term of the license period.

Contract Liabilities

Contract liabilities are included within “Deferred revenues” and “Other liabilities” on the Consolidated Balance Sheets and were $1.8 billion and $0.9 billion at September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively. For the periods from August 7 - September 30, 2025 (Successor) and January 1 - August 6, 2025, and for the nine months ended September 30, 2024 (Predecessor), we recognized revenues of $0.4 billion, $0.6 billion, and $0.6 billion, respectively, that were included in the opening balance of deferred revenues for the respective period.

Unrecognized Revenues Under Contract

At September 30, 2025 (Successor), unrecognized revenues attributable to unsatisfied performance obligations under our long-term contracts were approximately $6 billion, of which $1 billion is expected to be recognized during the remainder of 2025, $3 billion in 2026, $1 billion in 2027, and $1 billion thereafter. These amounts only include contracts subject to a guaranteed fixed amount or the guaranteed minimum under variable contracts, primarily consisting of television and film licensing contracts and affiliate agreements that are subject to a fixed or guaranteed minimum fee. Such amounts change on a regular basis as we renew existing agreements or enter into new agreements. In addition, the timing of satisfying certain performance obligations under these long-term contracts is uncertain and, therefore, is also subject to change. Unrecognized revenues under contracts disclosed above do not include (i) contracts with an original expected term of one year or less, mainly consisting of advertising contracts, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage, mainly consisting of affiliate agreements and (iii) long-term licensing agreements for multiple programs for which variable consideration is determined based on the value of the programs delivered to the customer and our right to invoice corresponds with the value delivered.

-22-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Performance Obligations Satisfied in Previous Periods

Under certain revenue arrangements, the amount and timing of our revenue recognition is determined based on our licensees’ subsequent sale to its end customers. As a result, under such arrangements we often satisfy our performance obligation of delivery of our content in advance of revenue recognition. We recognized revenue of $0.1 billion for the Successor period from August 7 - September 30, 2025, $0.1 billion and $0.4 billion for the Predecessor periods from July 1 - August 6, 2025, and January 1 - August 6, 2025, respectively, and $0.2 billion and $0.4 billion for the three and nine months ended September 30, 2024, respectively, principally relating to content licensing arrangements for which the performance obligation was satisfied prior to the periods indicated, including agreements with distributors of transactional video-on-demand and electronic sell-through services, other licensing arrangements, and theatrical distribution of our films. The amounts for the Predecessor periods in 2024 include advertising revenue from amounts recognized during 2024 for the underreporting of revenue by an international advertising sales agent in previous periods.

-23-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

7) DEBT

The table below details our debt, which was recorded at its fair value as of the closing date of the Transactions and the NAI Transaction on August 7, 2025 (see Note 2). Paramount Global is the issuer of all of the senior and junior debt in the table below. Upon the closing of the Transactions, Paramount Skydance Corporation provided a full and unconditional parent guarantee of Paramount Global’s senior and junior debt.

			Successor (a)																		Predecessor
			At																		At
			September 30, 2025																		December 31, 2024
4.0% Senior Notes due 2026						$	346																	$	346
3.70% Senior Notes due 2026						85																		86
2.90% Senior Notes due 2027						571																		582
3.375% Senior Notes due 2028						486																		498
3.70% Senior Notes due 2028						488																		496
4.20% Senior Notes due 2029						488																		496
7.875% Senior Debentures due 2030						919																		829
4.95% Senior Notes due 2031						1,220																		1,232
4.20% Senior Notes due 2032						917																		980
5.50% Senior Debentures due 2033						417																		428
4.85% Senior Debentures due 2034						75																		87
6.875% Senior Debentures due 2036						1,120																		1,072
6.75% Senior Debentures due 2037						75																		76
5.90% Senior Notes due 2040						271																		298
4.50% Senior Debentures due 2042						34																		45
4.85% Senior Notes due 2042						399																		490
4.375% Senior Debentures due 2043						1,073																		1,146
4.875% Senior Debentures due 2043						14																		18
5.85% Senior Debentures due 2043						1,101																		1,235
5.25% Senior Debentures due 2044						274																		345
4.90% Senior Notes due 2044						430																		542
4.60% Senior Notes due 2045						450																		591
4.95% Senior Notes due 2050						761																		950
6.25% Junior Subordinated Debentures due 2057						627																		644
6.375% Junior Subordinated Debentures due 2062						989																		989
Obligations under finance leases						3																		—
Total debt (b)						13,633																		14,501
Less current portion						347																		—
Total long-term debt, net of current portion						$	13,286																	$	14,501

(a) In connection with the Pushdown of the Ultimate Parent’s basis, our debt was recorded at fair value, which resulted in a decrease to our total debt balance of $898 million, reflecting the reversal of a net unamortized discount of $390 million and unamortized deferred financing fees of $71 million, and a reduction of $1.36 billion to adjust our debt to its fair value. The adjustments to fair value for each of our senior and junior debt issuances will be amortized over the remaining term of the applicable issuance within interest expense (see Note 2).

(b) At September 30, 2025 (Successor), our senior and junior debt balances were net of unamortized fair value adjustments totaling $1.35 billion. At December 31, 2024 (Predecessor), the senior and junior debt balances included a net unamortized discount of $401 million and unamortized deferred financing costs of $74 million. The face value of our total debt at both September 30, 2025 (Successor) and December 31, 2024 (Predecessor) was $14.98 billion.

Commercial Paper

At both September 30, 2025 (Successor) and December 31, 2024 (Predecessor), we had no outstanding commercial paper borrowings.

-24-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Credit Facility

On August 7, 2025, in connection with the closing of the Transactions and pursuant to the August 2024 amendment to the Credit Facility (which is further described below), Paramount Skydance Corporation entered into a joinder agreement pursuant to which it joined Paramount Global’s $3.50 billion revolving credit facility, which matures in January 2027 (the “Credit Facility”). The Credit Facility is used for general corporate purposes and to support commercial paper borrowings, if any. We may, at our option, also borrow in certain foreign currencies up to specified limits under the Credit Facility. Borrowing rates under the Credit Facility are determined at the time of each borrowing and are generally based on either the prime rate in the U.S. or an applicable benchmark rate plus a margin (based on our senior unsecured debt rating), depending on the type and tenor of the loans entered into. The benchmark rate for loans denominated in U.S. dollars is Term SOFR, and for loans denominated in euros, sterling and yen is based on EURIBOR, SONIA and TIBOR, respectively. At September 30, 2025, we had no borrowings outstanding under the Credit Facility and the availability under the Credit Facility was $3.50 billion.

The Credit Facility has one principal financial covenant which sets a maximum Consolidated Total Leverage Ratio (“Leverage Ratio”) at the end of each quarter. The maximum Leverage Ratio was 5.00x for the quarter ended September 30, 2025 and will decrease 0.25x for each subsequent quarter until the quarter ending March 31, 2026 when it will be 4.5x, and will remain at this level until maturity. The Leverage Ratio reflects the ratio of our Consolidated Indebtedness, net of unrestricted cash and cash equivalents at the end of a quarter, to our Consolidated EBITDA (each as defined in the credit agreement) for the trailing twelve-month period. In May 2025, Paramount Global entered into an amendment to the Credit Facility, which increased the maximum amount of unrestricted cash and cash equivalents that can be netted against Consolidated Indebtedness, in the calculation of the Leverage Ratio, from $1.50 billion to $3.0 billion, effective immediately, and amended the definition of Consolidated EBITDA to include an additional add-back (which is capped at 15% of Consolidated EBITDA after giving effect to such add-back) for cash items associated with provisions for restructuring or other business optimization programs, litigation and environmental reserves and losses on the disposition of businesses. We met the covenant as of September 30, 2025.

The Credit Facility also includes a provision that the occurrence of a change of control will be an event of default that would give the lenders the right to accelerate any outstanding loans and terminate their commitments. In August 2024, Paramount Global entered into amendments to the Credit Facility and the $1.9 billion standby letter of credit facility (see Note 14), which, among other things, revised the change of control provision and related definitions to reflect the ownership structure of the Company after giving effect to the Transactions and the NAI Transaction. These amendments became operative upon closing of the Transactions (see Note 1).

Upon the closing of the Transactions, Paramount Skydance Corporation entered into guarantee agreements providing for a full and unconditional parent guarantee of Paramount Global’s obligations with respect to any commercial paper borrowings incurred, and in accordance with the August 2024 amendment to the Credit Facility, a full and unconditional parent guarantee of Paramount Global’s obligations under the Credit Agreement went into effect.

Other Bank Borrowings

At both September 30, 2025 (Successor) and December 31, 2024 (Predecessor), there were no outstanding bank borrowings under Miramax’s $50 million credit facility that matures in November 2027.

-25-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

8) FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

The carrying value of our financial instruments approximates fair value, except for notes and debentures. At September 30, 2025 (Successor) and December 31, 2024 (Predecessor), the carrying value of our outstanding notes and debentures was $13.63 billion and $14.50 billion, respectively, and the fair value, which is determined based on quoted prices in active markets (Level 1 in the fair value hierarchy), was $13.9 billion and $13.3 billion, respectively.

Investments

Our investments without a readily determinable fair value for which we have no significant influence had a carrying value of $95 million and $86 million at September 30, 2025 (Successor) and December 31, 2024 (Predecessor), respectively. These investments are included in “Other assets” on the Consolidated Balance Sheets.

Foreign Exchange Contracts

We use derivative financial instruments primarily to manage our exposure to movements in foreign currency exchange rates when translating from the foreign local currency to the U.S. dollar. We do not use derivative instruments unless there is an underlying exposure and, therefore, we do not hold or enter into derivative financial instruments for speculative trading purposes.

Foreign currency forward contracts have principally been used to manage our exposure for currencies such as the British pound, the euro, the Canadian dollar and the Australian dollar, generally for periods up to 24 months. We designate forward contracts used to hedge committed and forecasted foreign currency transactions, including future production costs and programming obligations, as cash flow hedges. We also enter into non-designated forward contracts to hedge non-U.S. dollar denominated assets, liabilities, and cash flows.

At September 30, 2025 (Successor) and December 31, 2024 (Predecessor), the notional amount of all foreign exchange contracts was $2.92 billion and $2.75 billion, respectively. At September 30, 2025 (Successor), $2.50 billion related to future production costs and $419 million related to our foreign currency assets and liabilities. At December 31, 2024 (Predecessor), $2.39 billion related to future production costs and $358 million related to our foreign currency assets and liabilities.

Gains (losses) recognized on derivative financial instruments were as follows:

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024																		Financial Statement Account
Non-designated foreign exchange contracts						$	(3)														$	5											$	(17)																	Other items, net

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024									Financial Statement Account
Non-designated foreign exchange contracts																		$	(3)														$	(24)											$	(7)					Other items, net

-26-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Fair Value Measurements

The table below presents our assets and liabilities measured at fair value on a recurring basis at September 30, 2025 (Successor) and December 31, 2024 (Predecessor). These assets and liabilities have been categorized according to the three-level fair value hierarchy established by the FASB, which prioritizes the inputs used in measuring fair value. Level 1 is based on publicly quoted prices for the asset or liability in active markets. Level 2 is based on inputs that are observable other than quoted market prices in active markets, such as quoted prices for the asset or liability in inactive markets or quoted prices for similar assets or liabilities. Level 3 is based on unobservable inputs reflecting our own assumptions about the assumptions that market participants would use in pricing the asset or liability. All of our assets and liabilities that are measured at fair value on a recurring basis use Level 2 inputs. The fair value of foreign currency hedges is determined based on the present value of future cash flows using observable inputs including foreign currency exchange rates. The fair value of deferred compensation liabilities is determined based on the fair value of the investments elected by employees.

			Successor																		Predecessor
						At																		At
			September 30, 2025																		December 31, 2024
Assets:
Foreign currency hedges						$	40																	$	45
Total Assets						$	40																	$	45
Liabilities:
Deferred compensation						$	302																	$	385
Foreign currency hedges						28																		48
Total Liabilities						$	330																	$	433

The estimated fair values of our assets that were impaired during the periods presented were determined using Level 3 inputs. See Notes 3 and 4.

9) VARIABLE INTEREST ENTITIES

In the normal course of business, we enter into joint ventures or make investments with business partners that support our underlying business strategy and provide us the ability to enter new markets to expand the reach of our brands, develop new programming and/or distribute our existing content. In certain instances, an entity in which we make an investment may qualify as a variable interest entity (“VIE”). In determining whether we are the primary beneficiary of a VIE, we assess whether we have the power to direct matters that most significantly impact the activities of the VIE, and have the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE.

-27-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

The following tables present the amounts recorded in our consolidated financial statements related to our consolidated VIEs.

			Successor																		Predecessor
						At																		At
			September 30, 2025																		December 31, 2024
Total assets						$	1,339																	$	1,825
Total liabilities						$	225																	$	198

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024
Revenues						$	75														$	52											$	131
Operating loss						$	(3)														$	(15)											$	(11)

			Successor															Predecessor
			Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
			2025															2025												2024
Revenues						$	75														$	294											$	398
Operating loss						$	(3)														$	(102)											$	(75)

10) STOCKHOLDERS’ EQUITY

Impact from the Transactions— Common Stock

On August 6, 2025, each share of Paramount Global common stock that was owned by Paramount Global as treasury stock was cancelled and ceased to exist, and each issued and outstanding share of Paramount Global Class A Common Stock and Paramount Global Class B Common Stock was converted automatically into the right to receive one share of Paramount Skydance Corporation Class A Common Stock and Paramount Skydance Corporation Class B Common Stock, respectively. Additionally, at the closing of the Transactions, all outstanding Paramount Global RSU awards and PSU awards were converted to Paramount RSU awards.

The Transactions included a cash-stock election offered to holders of Paramount Global pursuant to which (a) shares of Paramount Global Class A Common Stock held by stockholders other than NAI or its subsidiaries were converted, at the stockholders’ election, into the right to receive either the Class A Cash Consideration or the Class A Stock Consideration and (b) shares of Paramount Global Class B Common Stock held by stockholders other than NAI or its subsidiaries, the NAI Equity Investors and certain other affiliates of investors in Skydance were converted, at the stockholders’ election, into the right to receive the Class B Cash Consideration (subject to proration) or the Class B Stock Consideration. The elections resulted in cash settlement of 7.2 million shares of Paramount Global Class A Common Stock at a price of $23.00 per share and cash settlement of 285.9 million shares of Paramount Global Class B Common Stock at a price of $15.00 per share for which holders of the shares elected to receive the Class A Cash Consideration and Class B Cash Consideration, respectively. In addition, holders of 2.0 million shares of Paramount Global Class A Common Stock elected to receive the Class A Stock Consideration or made no election, and as such received shares of Paramount Skydance Corporation Class B

-28-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Common Stock at a conversion rate of 1.5333, resulting in the issuance of 3.1 million shares of Paramount Skydance Corporation Class B Common Stock. Elections made for the Class B Cash Consideration were subject to a proration mechanism. Shares of Paramount Global Class B Common Stock for which elections to receive Class B Cash Consideration were not made or were validly revoked remained issued and outstanding as one share of Paramount Skydance Corporation Class B Common Stock. Shares of Paramount Global Class A Common Stock and Paramount Global Class B Common Stock were cancelled and ceased to exist upon completion of the Transactions.

The cash elections were funded by $4.45 billion of the PIPE Transaction proceeds, and the remaining $1.52 billion was provided to Paramount. In exchange for these proceeds, the NAI Equity Investors and certain other affiliates of investors in Skydance received 400 million newly issued shares of Paramount Skydance Corporation Class B Common Stock for a purchase price of $15.00 per share, and the NAI Equity Investors also received warrants to purchase 200 million shares of Paramount Skydance Corporation Class B Common Stock at an initial exercise price of $30.50 per share (subject to customary anti-dilution adjustments), which expire five years after issuance.

In addition, 316.7 million shares (313.8 million shares after reduction in connection with certain tax withholding requirements) of Paramount Skydance Corporation Class B Common Stock were issued to holders of Skydance Membership Units and Skydance Phantom Unit awards.

The table below details the activity described above and calculates shares of Paramount Skydance Corporation Class A Common Stock and Class B Common Stock issued and outstanding after completion of the Transactions.

(in millions)						Class A						Class B
Each share of Paramount Global Class A Common Stock converted to one share of Paramount Skydance Corporation Class A Common Stock						40.7
Each share of Paramount Global Class B Common Stock converted to one share of Paramount Skydance Corporation Class B Common Stock												633.6
Issuance of Paramount Skydance Corporation Class B Common Stock to the NAI Equity Investors and certain other affiliates of investors in Skydance in exchange for proceeds from the PIPE Transaction												400.0
Cancellation of cash-settled Class A Common Stock						(7.2)
Cancellation of cash-settled Class B Common Stock												(285.9)
Conversion of one share of stock-settled Class A Common Stock to 1.5333 shares of Class B Common Stock						(2.0)						3.1
Issuance of Paramount Skydance Corporation Class B Common Stock to holders of Skydance Membership Units and Skydance Phantom Unit awards												313.8
Total share issuance, net of cancellations						(9.2)						431.0
Total shares of Paramount Skydance Corporation Class A and Class B Common Stock issued and outstanding after the Transactions						31.5						1,064.6

Under the amended and restated certificate of incorporation, Paramount Skydance Corporation is authorized to issue up to 55 million shares of Paramount Skydance Corporation Class A Common Stock, par value of $.001 per share; 5.50 billion shares of Paramount Skydance Corporation Class B Common Stock, par value of $.001 per share; and 100 million shares of preferred stock, par value of $.001 per share.

-29-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Common Stock Dividends

The following tables present dividends declared per share and total dividends for Paramount Skydance Corporation Class B Common Stock for the Successor period and Paramount Global’s Class A and Class B Common Stock for the Predecessor periods.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
						2025															2025												2024
Class A and Class B Common Stock
Dividends declared per common share						$	.05														n/a												$	.05
Total common stock dividends						$	58														n/a												$	35

n/a - not applicable

						Successor															Predecessor
						Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024
Class A and Class B Common Stock
Dividends declared per common share															$	.05														$	.10											$	.15
Total common stock dividends															$	58														$	70											$	104

Mandatory Convertible Preferred Stock (Predecessor)

At December 31, 2023, there were 10 million shares of Paramount Global Mandatory Convertible Preferred Stock outstanding. During the first quarter of 2024, 0.3 million shares of Mandatory Convertible Preferred Stock were voluntarily converted into Paramount Global Class B Common Stock at a conversion rate of 1.0013 shares. On April 1, 2024, each of the remaining 9.7 million outstanding shares automatically and mandatorily converted into 1.1765 shares of Paramount Global Class B Common Stock, resulting in the issuance of 11.5 million shares.

During the first quarter of 2024, the final dividend on the Mandatory Convertible Preferred Stock was declared, at a rate of $1.4375 per share, resulting in total dividends of $14 million, which were paid on April 1, 2024.

RSU Grants (Successor)

During the period from August 7 - September 30, 2025, new RSU awards totaling 37 million shares were granted to certain senior executives. Shares with a grant date fair value of $447 million will vest in equal quarterly installments over a five-year period and shares with a grant date fair value of $26 million will vest in equal quarterly installments over a three-year period.

-30-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Accumulated Other Comprehensive Income (Loss)

The following tables summarize the changes in the components of accumulated other comprehensive income (loss).

			Cumulative Translation Adjustments												Net Actuarial Loss and Prior Service Cost																		Accumulated Other Comprehensive Income (Loss)
At December 31, 2024 (Predecessor)						$	(657)											$	(947)																							$	(1,604)
Other comprehensive income before reclassifications						115												—																								115
Reclassifications to net earnings						—												25			(a)																					25
Other comprehensive income						115												25																								140
At August 6, 2025 (Predecessor)						$	(542)											$	(922)																							$	(1,464)
Adjustments to Paramount Global’s basis						542												922																								1,464
At August 7, 2025 (Successor)						$	—											$	—																							$	—
Other comprehensive income before reclassifications						25												—																								25
Other comprehensive income						25												—																								25
At September 30, 2025 (Successor)						$	25											$	—																							$	25

			Cumulative Translation Adjustments												Net Actuarial Loss and Prior Service Cost																		Accumulated Other Comprehensive Loss
At December 31, 2023 (Predecessor)						$	(504)											$	(1,052)																							$	(1,556)
Other comprehensive loss before reclassifications						(1)												—																								(1)
Reclassifications to net loss						—												33			(a)																					33
Other comprehensive income (loss)						(1)												33																								32
At September 30, 2024 (Predecessor)						$	(505)											$	(1,019)																							$	(1,524)

(a) Reflects amortization of net actuarial losses (see Note 12).

The net actuarial loss and prior service cost related to pension and other postretirement benefit plans included in other comprehensive income (loss) is net of a tax benefit of $8 million for the period from January 1 - August 6, 2025 (Predecessor) and $11 million for the nine months ended September 30, 2024 (Predecessor).

11) INCOME TAXES

The provision for/benefit from income taxes represents federal, state and local, and foreign taxes on earnings (loss) from continuing operations before income taxes and equity in loss of investee companies. For the period from August 7 - September 30, 2025 (Successor),we recorded a provision for income taxes of $85 million and for the periods from July 1 - August 6, 2025 and January 1 - August 6, 2025 (Predecessor), we recorded a benefit from income taxes of $229 million and $79 million, respectively. The provision for income taxes in the Successor period reflects the timing of foreign inclusions and foreign-derived intangible income deductions between the Successor and Predecessor periods. The benefit from income taxes for the Predecessor periods reflect the tax impact of earnings attributable to noncontrolling interests, the timing of foreign inclusions between the Successor and Predecessor periods, and the tax benefit on the foreign-derived intangible income deduction.

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Each period was also impacted by the following items identified as affecting the comparability of results.

			Impact from Items Affecting Comparability
			Successor																											Predecessor
			Period From August 7 - September 30,																											Period From July 1 - August 6,
			2025																											2025
			Earnings (Loss) Before Income Taxes												Benefit from (Provision for) Income Taxes															Earnings (Loss) Before Income Taxes												Benefit from (Provision for) Income Taxes
Restructuring charges (Note 4)						$	(185)											$	30														$	(13)											$	3
Transaction-related items (Note 4)						$	—											$	—														$	(175)											$	30
Net discrete tax benefit (a)						n/a												$	4														n/a												$	73

			Impact from Items Affecting Comparability
			Successor																											Predecessor
			Period From August 7 - September 30,																											Period From January 1 - August 6,
			2025																											2025
			Earnings (Loss) Before Income Taxes												Benefit from (Provision for) Income Taxes															Earnings (Loss) Before Income Taxes												Benefit from (Provision for) Income Taxes
Restructuring charges (Note 4)						$	(185)											$	30														$	(255)											$	61
Transaction-related items (Note 4)						$	—											$	—														$	(199)											$	31
Impairment charges						$	—											$	—														$	(157)											$	39
Gain from dispositions						$	—											$	—														$	35											$	(2)
Net discrete tax benefit (a)						n/a												$	4														n/a												$	64

n/a - not applicable

(a) The net discrete tax benefit for the 2025 Predecessor periods reflects the reversal of the valuation allowance on our interest limitation carryforward deferred tax asset of $114 million, partially offset by a reserve for uncertain tax positions.

On July 4, 2025, the U.S. government enacted tax legislation, which includes the extension of certain expired or expiring tax provisions, including a favorable change to the interest deduction limitation, and modifications to certain international tax provisions. The legislation has multiple effective dates with certain provisions effective in 2025. As described in the table above, the favorable change to the interest deduction limitation resulted in the reversal of the valuation allowance on our interest limitation carryforward deferred tax asset of $114 million.

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

For the three and nine months ended September 30, 2024 (Predecessor), we recorded a provision for income taxes of $45 million and a benefit from income taxes of $342 million, reflecting an effective income tax rate of 37.5% and 5.6%, respectively. Included in the provision for/benefit from income taxes are the following items identified as affecting the comparability of our results, which in aggregate increased our effective income tax rate by 12.0 percentage points and decreased our effective income tax rate by 16.2 percentage points for their respective periods.

			Impact from Items Affecting Comparability
			Predecessor
			Three Months Ended September 30, 2024																								Nine Months Ended September 30, 2024
			Earnings (Loss) Before Income Taxes												Benefit from (Provision for) Income Taxes												Earnings (Loss) Before Income Taxes												Benefit from (Provision for) Income Taxes
Programming charges (Note 3)						$	—											$	—											$	(1,118)											$	275
Impairment charges (Note 4)						$	(104)											$	26											$	(6,100)											$	375
Restructuring charges (Note 4)						$	(288)											$	65											$	(544)											$	117
Transaction-related items (Note 4)						$	(33)											$	1											$	(51)											$	4
Loss from investment						$	—											$	—											$	(4)											$	1
Net discrete tax benefit (provision)						n/a												$	2											n/a												$	(47)

n/a - not applicable

(a) The net discrete tax provision for the nine months ended September 30, 2024 is primarily attributable to the establishment of a valuation allowance on our interest limitation carryforward deferred tax asset that was not expected to be realized because of a reduction in our deferred tax liabilities caused by the goodwill impairment charge in the second quarter of 2024. This impact was partially offset by amounts realized in connection with the filing of our tax returns in certain international jurisdictions.

-33-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

12) PENSION AND OTHER POSTRETIREMENT BENEFITS

The following tables present the components of net periodic cost for our pension and postretirement benefit plans. The service cost component of net periodic cost is presented on the Consolidated Statements of Operations within operating income and all other components of net periodic cost are included within “Other items, net”.

			Pension Benefits																																							Postretirement Benefits
			Successor															Predecessor																								Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,												Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024									2025																		2025												2024
Components of net periodic cost (a):
Service cost						$	—														$	—											$	—											$	—														$	1											$	—
Interest cost						30															21												50												1															—												3
Expected return on plan assets						(19)															(13)												(34)												—															—												—
Amortization of actuarial loss (gain) (b)						—															7												20												—															(2)												(4)
Net periodic cost						$	11														$	15											$	36											$	1														$	(1)											$	(1)

			Pension Benefits																																							Postretirement Benefits
			Successor															Predecessor																								Successor															Predecessor
			Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,												Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
			2025															2025												2024												2025															2025												2024
Components of net periodic cost (a):
Service cost						$	—														$	—											$	—											$	—														$	1											$	—
Interest cost						30															120												149												1															5												8
Expected return on plan assets						(19)															(77)												(102)												—															—												—
Amortization of actuarial loss (gain) (b)						—															44												60												—															(11)												(13)
Net periodic cost						$	11														$	87											$	107											$	1														$	(5)											$	(5)

(a) Amounts reflect our domestic plans only.

(b) Reflects amounts reclassified from accumulated other comprehensive loss to net earnings (loss).

-34-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

13) SEGMENT INFORMATION

The tables below set forth our financial information by reportable segment that is regularly reviewed by the Company’s chief operating decision maker (“CODM”), who is the Company’s Chief Strategy Officer and Chief Operating Officer, Andrew Gordon. We are in the process of transitioning our reporting structure into three new segments: Studios, Direct-to-Consumer, and TV Media, which will be completed and reflected in our Quarterly Report on Form 10-Q for the first quarter of 2026. The following is a description of our current segments:

• *TV Media—Our TV Media segment consists of our (1) broadcast operations—*the CBS Television Network, our domestic broadcast television network; CBS Stations, our owned television stations; and our international free-to-air networks, Network 10, Channel 5, and Chilevisión; (2) domestic premium and basic cable networks, including Paramount+ with Showtime, MTV, Comedy Central, Paramount Network, The Smithsonian Channel, Nickelodeon, BET Media Group, CBS Sports Network, and international extensions of certain of these brands; and (3) domestic and international television studio operations, including CBS Studios and Paramount Television Studios, as well as CBS Media Ventures, which produces and distributes first-run syndicated programming. TV Media also includes a number of digital properties such as CBS News Streaming for 24 hour news and CBS Sports HQ for sports news and analysis.

• *Direct-to-Consumer—*Our Direct-to-Consumer segment includes our portfolio of domestic and international pay and free streaming services, including Paramount+, Pluto TV, and BET+.

• Filmed Entertainment*—*Our Filmed Entertainment segment consists of Paramount Pictures, Skydance’s Animation, Film, Television, Interactive/Games, and Sports divisions, Paramount Players, Paramount Animation, Nickelodeon Studio, Awesomeness, and Miramax.

-35-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

We present operating income excluding depreciation and amortization, stock-based compensation, impairment charges, restructuring charges, transaction-related items, programming charges, and gain on dispositions, each where applicable (“Adjusted OIBDA”), as the primary measure of profit and loss for our operating segments in accordance with FASB guidance for segment reporting. Programming charges consist only of charges related to major strategic changes (see Note 3), and do not include impairment charges that occur as part of our normal operations, which are recorded within content costs in the tables below, where applicable, and are not excluded in Adjusted OIBDA. Stock-based compensation is excluded from our segment measure of profit and loss because it is set and approved by our Board of Directors in consultation with corporate executive management. We do not disclose our assets by segment because they are not regularly provided to the CODM and are not used to evaluate our operating performance or in determining the allocation of resources.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024
Revenues:
Advertising						$	980														$	485											$	1,666
Affiliate and subscription						1,044															696												1,872
Licensing and other						344															247												760
TV Media						2,368															1,428												4,298
Advertising						300															179												507
Subscription						983															704												1,343
Licensing						1															—												10
Direct-to-Consumer						1,284															883												1,860
Theatrical						39															73												108
Licensing and other						440															202												480
Advertising						1															1												2
Filmed Entertainment						480															276												590
Eliminations						(11)															(6)												(17)
Total Revenues						$	4,121														$	2,581											$	6,731

-36-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024
Revenues:
Advertising																		$	980														$	4,180											$	5,981
Affiliate and subscription																		1,044															4,302												5,778
Licensing and other																		344															1,495												2,041
TV Media																		2,368															9,977												13,800
Advertising																		300															1,146												1,540
Subscription																		983															3,940												4,069
Licensing																		1															1												10
Direct-to-Consumer																		1,284															5,087												5,619
Theatrical																		39															475												399
Licensing and other																		440															1,112												1,465
Advertising																		1															6												10
Filmed Entertainment																		480															1,593												1,874
Eliminations																		(11)															(35)												(64)
Total Revenues																		$	4,121														$	16,622											$	21,229

Revenues generated between segments are principally from intersegment arrangements for the distribution of content, rental of studio space, and advertising, as well as licensing revenues earned from third parties who license our content to our internal platforms either through a sub-license or co-production arrangement. These transactions are recorded at market value as if the sales were to third parties and are eliminated in consolidation. For content that is licensed between segments, content costs are allocated across segments based on the relative value of the distribution windows within each segment. Accordingly, no intersegment licensing revenues or profits are recorded by the licensor segment.

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024
Intercompany Revenues:
TV Media						$	3														$	3											$	5
Filmed Entertainment						8															3												12
Total Intercompany Revenues						$	11														$	6											$	17

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024
Intercompany Revenues:
TV Media																		$	3														$	20											$	22
Filmed Entertainment																		8															15												42
Total Intercompany Revenues																		$	11														$	35											$	64

-37-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

			Successor															Predecessor
			Period From August 7 - September 30,															Period From July 1 - August 6,												Three Months Ended September 30,
			2025																		2025												2024
TV Media
Revenues						$	2,368														$	1,428											$	4,298
Content costs						1,109															657												2,066
Advertising and marketing						62															59												164
Other (a)						657															430												1,132
Total segment expenses						1,828															1,146												3,362
TV Media Adjusted OIBDA						540															282												936
Direct-to-Consumer
Revenues						1,284															883												1,860
Content costs						545															412												961
Advertising and marketing						153															114												259
Other (b)						351															252												591
Total segment expenses						1,049															778												1,811
Direct-to-Consumer Adjusted OIBDA						235															105												49
Filmed Entertainment
Revenues						480															276												590
Content costs						337															131												274
Advertising and marketing						54															106												145
Other (c)						102															75												168
Total segment expenses						493															312												587
Filmed Entertainment Adjusted OIBDA						(13)															(36)												3
Corporate/Eliminations						(78)															(38)												(84)
Stock-based compensation (d)						(29)															(16)												(46)
Depreciation and amortization						(226)															(29)												(96)
Impairment charges						—															—												(104)
Restructuring and transaction-related items (d)						(185)															(188)												(321)
Operating income						244															80												337
Interest expense						(138)															(85)												(209)
Interest income						24															13												31
Other items, net						(8)															(16)												(39)
Earnings (loss) from continuing operations before income taxes and equity in loss of investee companies						122															(8)												120
(Provision for) benefit from income taxes						(85)															229												(45)
Equity in loss of investee companies, net of tax						(33)															(31)												(59)
Net earnings from continuing operations						4															190												16
Net earnings from discontinued operations, net of tax						—															—												5
Net earnings (Parent and noncontrolling interests)						4															190												21
Net earnings attributable to noncontrolling interests						(17)															(434)												(20)
Net earnings (loss) attributable to Parent						$	(13)														$	(244)											$	1

-38-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

									Successor															Predecessor
									Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
															2025															2025												2024
TV Media
Revenues																		$	2,368														$	9,977											$	13,800
Content costs																		1,109															4,956												6,528
Advertising and marketing																		62															328												444
Other (a)																		657															2,626												3,429
Total segment expenses																		1,828															7,910												10,401
TV Media Adjusted OIBDA																		540															2,067												3,399
Direct-to-Consumer
Revenues																		1,284															5,087												5,619
Content costs																		545															2,712												3,176
Advertising and marketing																		153															749												871
Other (b)																		351															1,473												1,783
Total segment expenses																		1,049															4,934												5,830
Direct-to-Consumer Adjusted OIBDA																		235															153												(211)
Filmed Entertainment
Revenues																		480															1,593												1,874
Content costs																		337															846												905
Advertising and marketing																		54															417												470
Other (c)																		102															430												553
Total segment expenses																		493															1,693												1,928
Filmed Entertainment Adjusted OIBDA																		(13)															(100)												(54)
Corporate/Eliminations																		(78)															(212)												(281)
Stock-based compensation (d)																		(29)															(99)												(141)
Depreciation and amortization																		(226)															(204)												(297)
Programming charges																		—															—												(1,118)
Impairment charges																		—															(157)												(6,100)
Restructuring and transaction-related items (d)																		(185)															(454)												(595)
Gain on dispositions																		—															35												—
Operating income (loss)																		244															1,029												(5,398)
Interest expense																		(138)															(516)												(645)
Interest income																		24															83												111
Loss from investment																		—															—												(4)
Other items, net																		(8)															(92)												(126)
Earnings (loss) from continuing operations before income taxes and equity in loss of investee companies																		122															504												(6,062)
(Provision for) benefit from income taxes																		(85)															79												342
Equity in loss of investee companies, net of tax																		(33)															(171)												(221)
Net earnings (loss) from continuing operations																		4															412												(5,941)
Net earnings from discontinued operations, net of tax																		—															—												14
Net earnings (loss) (Parent and noncontrolling interests)																		4															412												(5,927)
Net earnings attributable to noncontrolling interests																		(17)															(447)												(39)
Net loss attributable to Parent																		$	(13)														$	(35)											$	(5,966)

-39-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

(a) Other segment expenses for our TV Media segment include employee compensation; revenue-sharing costs to television stations affiliated with the CBS Television Network; costs relating to the distribution of our content; costs for research, occupancy, technology, and professional services; and other costs associated with our operations.

(b) Other segment expenses for our Direct-to-Consumer segment include employee compensation; revenue-sharing costs, including for third-party distribution; costs for occupancy, technology, and professional services; and other costs associated with our operations.

(c) Other segment expenses for our Filmed Entertainment segment include employee compensation; costs relating to the distribution of our content; costs for occupancy, technology, and professional services; and other costs associated with our operations.

(d) For the Successor period from August 7 - September 30, 2025, and the Predecessor periods from July 1 - August 6, 2025 and January 1 - August 6, 2025, stock-based compensation expense of $30 million, $10 million, and $14 million, respectively, is included in “Restructuring and transaction-related items.” For the Predecessor periods in 2024, stock-based compensation expense of $20 million and $34 million, respectively, is included in “Restructuring and transaction-related items.”

14) COMMITMENTS AND CONTINGENCIES

Guarantees

Letters of Credit and Surety Bonds

At September 30, 2025 (Successor), we had outstanding letters of credit and surety bonds of $673 million that were not recorded on the Consolidated Balance Sheet, including $436 million issued under a $1.9 billion standby letter of credit facility in accordance with the contractual requirements of one of our commitments. The amount outstanding under the letter of credit decreases throughout 2025 as we make payments under the related contractual commitment. Letters of credit and surety bonds are primarily used as security against non-performance in the normal course of business under contractual requirements of certain of our commitments. The standby letter of credit facility, which matures in May 2026, is subject to provisions similar to the Credit Facility, including the same principal financial covenant (see Note 7).

Other

In the course of our business, we both provide and receive indemnities that are intended to allocate certain risks associated with business transactions. Similarly, we may remain contingently liable for various obligations of a business that has been divested in the event that a third party does not live up to its obligations under an indemnification obligation. We record a liability for our indemnification obligations and other contingent liabilities when probable and reasonably estimable.

Legal Matters

General

On an ongoing basis, we vigorously defend ourselves in numerous lawsuits and proceedings and respond to various investigations and inquiries from federal, state, local and international authorities (collectively, “Litigation”). Litigation may be brought against us without merit, is inherently uncertain and always difficult to predict. However, based on our understanding and evaluation of the relevant facts and circumstances, we believe that the following matters are not likely, in the aggregate, to result in a material adverse effect on our business, financial condition and results of operations.

-40-

PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

Litigation Relating to the Transactions

In connection with the Transactions, on July 24, 2024, Scott Baker, a purported holder of Paramount Global Class B Common Stock, filed a putative class action lawsuit in the Court of Chancery of the State of Delaware (the “Court”) against NAI, Shari E. Redstone, Barbara M. Byrne, Linda M. Griego, Judith A. McHale, Charles E. Phillips, Jr., Susan Schuman, Skydance and David Ellison (the “Baker Action”). The complaint alleges breaches of fiduciary duties to Class B stockholders in connection with the negotiation and approval of the Transaction Agreement, among other claims, and seeks unspecified damages, costs and expenses, as well as other relief. On November 4, 2024, the Court granted the parties’ stipulation in the Baker Action agreeing to (i) postpone briefing on motions to dismiss until the filing or designation of an operative complaint following resolution of the plaintiff’s motion to appoint him and the Baerlocher Family Trust, a purported holder of Paramount Global Class B Common Stock, as co-lead plaintiffs and Berger Montague PC as interim class counsel (the “Baker Leadership Motion”), and (ii) stay discovery until resolution of any motions to dismiss any operative complaint following resolution of the Baker Leadership Motion. Throughout October 2024, various purported stockholders filed motions for intervention to oppose the Baker Leadership Motion. On December 31, 2024, the plaintiff, along with Mark Baerlocher, as trustee for the Baerlocher Family Trust, filed an amended complaint alleging the same breaches of fiduciary duties against the same defendants as in the original complaint. On June 27, 2025, counsel for Mr. Baker informed the Court that the Baker Leadership Motion would be withdrawn without prejudice and that the group of purported stockholders seeking lead plaintiff status would meet and confer to propose a schedule for resolving lead plaintiff applications.

On April 30, 2024, the State of Rhode Island Office of the General Treasurer, on behalf of the Employees’ Retirement System of Rhode Island, a purported holder of Paramount Global Class B Common Stock filed a verified complaint for the inspection of books and records under Section 220 of the General Corporation Law of the State of Delaware (the “DGCL”) in the Court against us, seeking the inspection of our books and records in order to investigate whether our Board of Directors, NAI, Shari E. Redstone and/or our executive officers may have breached their fiduciary duties to our stockholders for alleged diversion of corporate opportunities (the “220 Action”). The magistrate judge held a trial on July 24, 2024, and denied the request for inspection. The plaintiff noticed an exception to the Court, and on January 29, 2025, the Court ruled that the plaintiff is entitled to obtain books and records that are both necessary and sufficient to fulfill the purpose of its request. On February 25, 2025, the Court granted an implementing order returning the 220 Action to the magistrate judge for further proceedings on the scope of production. On March 24, 2025, the Court granted our application for certification of interlocutory appeal to the Delaware Supreme Court, which was accepted on April 30, 2025. Briefing on the appeal is complete. Certain other purported holders of Paramount Global Class B Common Stock and Class A Common Stock have delivered demand letters to investigate similar alleged breaches of fiduciary duties in connection with the Transactions and requested the inspection of books and records. We have also received demand letters from purported holders of Paramount Global Class B Common Stock related to alleged omissions in New Paramount’s registration statement on Form S-4.

Additionally, on August 20, 2024, LiveVideo.AI Corp. filed a lawsuit in the U.S. District Court for the Southern District of New York against Shari E. Redstone, NAI, Christine Varney and Monica Seligman, alleging that defendants did not fairly consider its offer to purchase Paramount. The complaint asserts claims for unfair competition, tortious interference, unjust enrichment and aiding and abetting breach of fiduciary duty, among others, and seeks unspecified monetary damages, costs and other relief. The defendants were never served. The parties exchanged several filings related to service and default. On August 12, 2025, the magistrate judge issued a Report and Recommendation recommending that the case be dismissed and the court impose $10,000 in monetary sanctions against LiveVideo.AI Corp. The district judge adopted the report in full on September 30, 2025, dismissing the case, imposing the sanctions, and enjoining LiveVideo.AI Corp. from filing any further lawsuits in any federal district court arising out of the Transactions.

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

On August 13, 2025, Gabelli Value 25 Fund Inc. (“Gabelli”) filed a putative class action complaint against Barbara M. Byrne, Linda M. Griego, Judith A. McHale, Charles E. Phillips, Jr., Susan Schuman (the “Special Committee Defendants”), Harbor Lights Entertainment, Inc. (f/k/a National Amusements, Inc.) and Shari Redstone (the “NAI Defendants”), and Skydance Media, LLC and RB Tentpole LP (the “Skydance Defendants”), alleging causes of action for breach of fiduciary duty against all defendants and unjust enrichment against the NAI Defendants. Gabelli seeks a declaratory judgment, damages, including rescissory damages and/or quasi-appraisal damages, disgorgement of NAI’s profits, fees and costs, and pre- and post-judgment interest. On September 16, 2025, the Skydance Defendants filed placeholder motions to dismiss, and Gabelli filed a motion to be appointed as interim lead plaintiff representing former minority holders of Class A shares of pre-Transaction Paramount (the “Gabelli Class A Leadership Motion”). On October 16, 2025, counsel for Gabelli filed a letter with the Court indicating that no competing motions or objections to the Gabelli Class A Leadership Motion were filed and proposed that the Court appoint Gabelli as lead plaintiff.

On February 4, 2025, New York City Employees’ Retirement System, the New York City Fire Department Pension Fund, the New York City Police Pension Fund, the New York City Board of Education Retirement System, and the Teachers’ Retirement System of the City of New York, purported holders of Paramount Global Class B Common Stock and Class A Common Stock, filed a putative class action lawsuit in the Court against Barbara M. Byrne, Linda M. Griego, Judith A. McHale and Susan Schuman, which alleges breaches of fiduciary duties for their alleged failure to sufficiently consider an alternate offer that the plaintiffs claimed was superior to the Transactions (the “NYCERS Action”). The plaintiffs argue that the no-shop provision in the Transaction Agreement should be declared invalid and unenforceable because it prevented the parties from engaging in further deal discussions and negotiations with companies other than Skydance, including, specifically, Project Rise Partners, after the no-shop period began. The plaintiffs further assert that the Court has the power to invalidate this provision because Skydance allegedly aided and abetted NAI’s and Shari E. Redstone’s breach of fiduciary duties, including by agreeing to indemnify Shari E. Redstone (through Skydance’s separate agreement with NAI) for any breach of fiduciary duty claims arising out of the Transactions up to a certain amount. Skydance, NAI, Shari E. Redstone and Paramount were not named as defendants in the original complaint. The NYCERS Action originally sought, among other forms of relief, an order from the Court enjoining the closing of the Transactions until the Court reached a final resolution on the plaintiffs’ claims and an order compelling the Special Committee to evaluate Project Rise Partners’ alternative offer to, among other things, acquire Paramount Global Class A Common Stock for $23.00 per share and Paramount Global Class B Common Stock for $19.00 per share. The Project Rise Partners’ offer was made after the go-shop period in the Transaction Agreement had ended. The complaint does not seek compensatory damages. The plaintiffs filed a motion for expedited proceedings along with their complaint. On February 18, 2025, the plaintiffs moved to join Paramount and Skydance (and various other entities named in the Transaction Agreement) as necessary parties to the litigation and moved for a temporary restraining order preventing the closing of the Transactions until the Court considered the plaintiffs’ anticipated motion for injunctive relief following expedited discovery. The parties reached agreement to withdraw plaintiffs’ request for expedition and their application for injunctive relief in exchange for targeted discovery from certain of the defendants and third parties. The matter is in discovery.

On April 8, 2025, Metropolitan Water Reclamation District Retirement Fund, Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago, Gary Mendelsohn, and Park Employees’ Annuity and Benefit Fund of Chicago, purported holders of Class B Common Stock, filed a complaint for the inspection of books and records under Section 220 of the DGCL in the Court against us to maintain standing to enforce their statutory inspection rights and seek an order that Paramount produce all the books and records identified in their Section 220 demands to investigate possible breaches of fiduciary duties in connection with the Transactions. The complaint alleges that the documents produced to such purported stockholders thus far pursuant to their Section 220 demands are insufficient. The complaint seeks an order requiring us to produce the documents identified in their Section 220

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

demands, among other relief. On April 21, 2025, the Court approved a stipulation by the parties to stay all proceedings in the action in an effort to resolve the dispute.

Litigation Related to Distribution Agreements

In October 2024, Sony Pictures Television Inc., along with Jeopardy Productions, Inc. and Califon Productions, Inc. (collectively, “Sony”), filed a civil complaint for damages against CBS Studios Inc. in the Superior Court of the State of California, for Los Angeles County, asserting a breach of contract claim against us relating to our exclusive right to distribute Wheel of Fortune and Jeopardy! (the “Distribution Agreements”). In December 2024, we filed a cross-complaint against Sony seeking, among other things, a declaration that the Distribution Agreements remain in full force and effect. On February 3, 2025, Sony purported to assume our distribution functions, and on February 4, 2025, we filed an ex parte application, seeking a temporary restraining order preventing Sony from assuming these distribution functions, which the trial court granted on February 5, 2025. On April 10, 2025, the trial court declined to issue a preliminary injunction preventing Sony from assuming these distribution functions for the duration of the litigation. On April 11, 2025, we appealed the trial court’s ruling and requested a stay of the order denying the preliminary injunction, which was granted on April 16, 2025. The parties have reached a settlement of this matter.

Claims Related to Former Businesses

Asbestos

We are a defendant in lawsuits claiming various personal injuries related to asbestos and other materials, which allegedly occurred as a result of exposure caused by various products manufactured by Westinghouse, a predecessor, generally prior to the early 1970s. Westinghouse was neither a producer nor a manufacturer of asbestos. We are typically named as one of a large number of defendants in both state and federal cases. In the majority of asbestos lawsuits, the plaintiffs have not identified which of our products is the basis of a claim. Claims against us in which a product has been identified most commonly relate to allegations of exposure to asbestos-containing insulating material used in conjunction with turbines and electrical equipment.

Claims are frequently filed and/or settled in groups, which may make the amount and timing of settlements, and the number of pending claims, subject to significant fluctuation from period to period. We do not report as pending those claims on inactive, stayed, deferred or similar dockets that some jurisdictions have established for claimants who allege minimal or no impairment. As of September 30, 2025 (Successor), we had pending approximately 17,540 asbestos claims, as compared with approximately 18,310 as of December 31, 2024 (Predecessor). For the period from August 7 - September 30, 2025 (Successor) and for the period from July 1 - August 6, 2025 (Predecessor) we received approximately 450 and 330 new claims, respectively, and closed or moved to an inactive docket approximately 910 and 120 claims, respectively. We report claims as closed when we become aware that a dismissal order has been entered by a court or when we have reached agreement with the claimants on the material terms of a settlement. Settlement costs depend on the seriousness of the injuries that form the basis of the claims, the quality of evidence supporting the claims and other factors. Our total costs for the years 2024 (Predecessor) and 2023 (Predecessor) for settlement and defense of asbestos claims after insurance recoveries and net of tax were approximately $34 million and $54 million, respectively. Our costs for settlement and defense of asbestos claims may vary year to year and insurance proceeds are not always recovered in the same period as the insured portion of the expenses.

Filings include claims for individuals suffering from mesothelioma, a rare cancer, the risk of which is allegedly increased by exposure to asbestos; lung cancer, a cancer which may be caused by various factors, one of which is alleged to be asbestos exposure; other cancers, and conditions that are substantially less serious, including claims

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

brought on behalf of individuals who are asymptomatic as to an allegedly asbestos-related disease. A significant number of pending claims against us are non-cancer claims. It is difficult to predict long-term future asbestos liabilities, as events and circumstances may impact the estimate.

Other

From time to time, we receive claims from federal and state environmental regulatory agencies and other entities asserting that we are or may be liable for environmental cleanup costs and related damages principally relating to our historical and predecessor operations. In addition, from time to time we receive personal injury claims including toxic tort and product liability claims (other than asbestos) arising from our historical operations and predecessors.

In connection with recording Paramount Global’s net assets at the Ultimate Parent’s basis, “Other liabilities” was increased to reflect the fair value of Paramount Global’s estimated contingent liabilities for the defense and settlement of asbestos lawsuits as well as claims from federal and state environmental regulatory agencies and other entities asserting liability for environmental cleanup costs and related damages (See Note 2). The estimated fair value of the asbestos-related liability was determined in consultation with a third-party firm with expertise in estimating asbestos liability and represents the estimate of the amount a third party would pay to take on the risk of any asbestos-related future losses. While we believe that our accruals for these matters are adequate, there can be no assurance that circumstances will not change in future periods and, as a result, our actual liabilities may be higher or lower than our accrual.

15) SUPPLEMENTAL FINANCIAL INFORMATION

Supplemental Cash Flow Information

			Successor															Predecessor
			Period From August 7 - September 30,															Period From January 1 - August 6,												Nine Months Ended September 30,
			2025															2025												2024
Cash paid for interest						$	148														$	524											$	676
Cash paid for income taxes						$	11														$	201											$	68
Noncash additions to operating lease assets						$	1														$	82											$	76

The cash balance on August 6, 2025 (Predecessor) was $2.46 billion. The cash balance on August 7, 2025 (Successor) was $3.85 billion. The difference reflects the proceeds received from the PIPE Transaction (see Note 1) and cash received from Skydance’s opening balance sheet, offset by cash paid for transaction-related costs incurred prior to the Closing Date.

In connection with the closing of the Transactions, on August 7, 2025 (Successor), borrowings outstanding of $720 million under Skydance’s revolving credit facility were repaid in full.

Lease Income

We enter into operating leases for the use of our owned production facilities and office buildings. Lease payments received under these agreements consist of fixed payments for the rental of space and certain building operating costs, as well as variable payments based on usage of production facilities and services, and escalating costs of building operations. We recorded total lease income, including both fixed and variable amounts, of $7 million, $2 million and $23 million for the periods from August 7 - September 30, 2025 (Successor), July 1 - August 6, 2025,

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PARAMOUNT SKYDANCE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Tabular dollars in millions, except per share amounts)

and January 1 - August 6, 2025 (Predecessor), respectively, and $10 million and $25 million for the three and nine months ended September 30, 2024 (Predecessor), respectively.

Dispositions

During the first quarter of 2025 (Predecessor), we recorded gains totaling $35 million, principally associated with the disposition of a noncore business.

Discontinued Operations

On October 30, 2023, we completed the sale of Simon & Schuster to affiliates of Kohlberg Kravis Roberts & Co. During the first quarter of 2024 (Predecessor), we recorded an additional pretax gain of $12 million on the sale as a result of a working capital adjustment.

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