Warner Bros. Plans to Reshape Its SkyShowtime Partnership with Comcast

Paramount’s Potential Acquisition of HBO Max May Breach SkyShowtime Agreement

Industry sources indicate that Paramount’s proposed ownership of HBO Max could lead to a breach of its joint venture agreement with SkyShowtime, a streaming service currently available in 22 European markets and boasting over 9 million subscribers. Both SkyShowtime and Paramount declined to comment, and Comcast did not respond to requests for further information.

Paramount+ is currently accessible in seven European countries, but does not overlap with SkyShowtime, having previously withdrawn from Sweden, Norway, Denmark, and Finland in 2022 to accommodate the latter. Additionally, Comcast has not expanded its Peacock service internationally, and SkyShowtime is not available in the UK, where Comcast owns Sky.

Acquiring HBO Max could significantly alter the landscape. HBO Max operates in 21 of SkyShowtime’s 22 markets, including key regions such as Spain and the Nordics. David Ellison, the head of Paramount, has expressed intentions to merge Paramount+ and HBO Max. “That would go against the whole joint venture thing,” noted a well-informed source.

The deal with Warner Bros. Discovery (WBD) has created noticeable uncertainty among SkyShowtime employees, leading to speculation about changes to the platform’s shareholder structure. Sources suggest that it might be advantageous for Paramount to assume control of the SkyShowtime partnership, or at least become a dominant player. Comcast co-CEO Mike Cavanagh indicated in March that the company remains focused on its U.S. streaming strategy.

“A scenario in which Paramount assumes full control of the SkyShowtime platform and integrates it into its operations in EMEA is increasingly viewed as a likely strategic outcome,” remarked a source familiar with the discussions.

Paramount is currently seeking regulatory approval for the WBD acquisition, with expectations that the deal will close in the third quarter of this year.

SkyShowtime features a range of popular series, including Sky Studios’ The Day of the Jackal and Taylor Sheridan’s Yellowstone, which has been instrumental in driving subscriptions. The platform recently reported an operating loss of €543.7 million ($632 million) in 2024, a slight decrease from the previous year’s loss of €561.9 million.

Based at Sky’s campus near central London, SkyShowtime recently held an all-hands meeting in Budapest, where CEO Monty Sarhan reportedly fostered a positive atmosphere among the 300 employees present. Nonetheless, some sources indicate that internal employee sentiment has recently fallen below expectations, although SkyShowtime maintained that feedback from the Budapest event was “overwhelmingly positive.”

A spokesperson for Paramount addressed the situation, stating, “SkyShowtime continues to operate under its established joint venture agreement. We don’t comment on speculation about contractual matters between shareholders.”