Paramount Global Faces Risks in Carriage Talks Amid Streaming and Cable Struggles

Charter Communications and Paramount Global are in carriage agreement renewal talks that could impact Paramount's finances and ability to deliver expected free cash flow.

Paramount Global took a step toward a complex deal with Skydance Media involving a $5 billion acquisition that would give Shari Redstone $2 billion for her shares.

The Charter negotiations come at a sensitive time amid Paramount's struggles with streaming losses and as its cable channels decline.

Charter will likely push to cut subscriber fees paid to Paramount and distribution for some channels, which could trigger cuts from other providers.

Paramount's board rejected a $27 billion acquisition offer from Apollo, betting on working out a deal with Skydance and David Ellison instead, with Jeff Shell possibly taking an operational role.