Paramount Global (PARA) will report second quarter earnings after the bell on Thursday, the entertainment giant's first report since it announced plans to merge with Skydance Media in a deal marking an end to the Redstone family's control of the company.

For the second quarter, Paramount is expected to report a direct-to-consumer (DTC) loss of $267 million, according to Bloomberg consensus estimates. That's narrower than the $286 million loss seen in the first quarter and the $424 million loss in the year-earlier period.

The company previously said it expects to reach domestic Paramount+ profitability in 2025. The streamer currently boasts 71.2 million total subscribers. Shares are down 30% since the start of the year.

Here's what Wall Street expects, according to Bloomberg consensus estimates:

• Revenue: $7.24 billion versus $7.62 billion a year ago

• Adj. earnings per share (EPS): $0.13 versus $0.10 a year ago

• Paramount+ subscribers: 572,000 net additions versus 700,000 net additions a year ago

Linear advertising revenue is expected to decline by double digits in the quarter. Consensus estimates peg the segment falling 10% from the year-earlier period following a 14% surge in Q1 as a result of record Super Bowl ad sales.

Linear profits are also set to continue their plunge amid greater cord-cutting trends, and Paramount's streaming segment is expected to remain unprofitable for at least the next year. Wall Street expects EBITDA fell 5% in the second quarter.

But all of that might not matter much with Skydance's pending takeover on the horizon. The deal is expected to close in the third quarter of 2025.

Skydance, which will be valued at $4.75 billion following the all-stock deal's completion, said it would inject $6 billion in cash into Paramount, with $1.5 billion going directly into its debt-ridden balance sheet.

Skydance CEO David Ellison will become chairman and CEO of the combined company, while former NBCUniversal executive Jeff Shell, who was ousted last year over an "inappropriate relationship" with a female employee, will serve as president.

Last month, the new leadership team laid out their strategic vision for Paramount, which will include $2 billion in cost cuts that will be delivered "pretty rapidly."

"We love the creative engine of this company. But obviously, a big chunk of the company is in the linear world and we know linear is challenged and declining," Shell said. "I think a lot of us in the business know we've got to run these businesses in a different way as they decline."

In a note to clients ahead of the report, Bloomberg Intelligence media analyst Geetha Ranganathan said that although the transaction is strategic for Paramount, there likely won't be positive catalysts "for awhile, with the focus now on cost-cutting."

"New Paramount will have good opportunities in content production but it will come down to execution, especially as it navigates industry headwinds."

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at [email protected].

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