Warner Bros Discovery and Paramount Global are reportedly in early discussions about a potential merger, marking a potential partnership between the HBO and CNN owner and the studio responsible for Mission Impossible films and CBS News.
This prospective deal would unite two major players among Hollywood’s “Big Five” studios, boasting a combined market value of $38 billion.
However, sources note that these talks are in preliminary stages and may not materialize.
The respective heads, Warner’s David Zaslav and Paramount’s Bob Bakish, reportedly discussed this possibility during a recent lunch meeting in New York, as per Axios.
In response to the changing landscape driven by streaming services like Netflix, Amazon Video, and Apple TV, traditional media companies such as Warner and Paramount have been compelled to swiftly invest and adapt.
Both entities have encountered significant losses, prompting considerable cost-cutting measures, and their stock values currently trade below previous highs amidst the streaming era.
Axios suggests that discussions included a potential merging of Paramount Plus and Max (formerly HBO Max) to enhance their competitiveness against Netflix and Disney Plus.
Paramount faces pressure due to its substantial debt amassed during the expansion of its streaming service, prompting the quest for a buyer or strategic partner.
Meanwhile, Warner Bros, known for recent hits like Barbie, enjoys a slightly better financial standing, partly attributed to astute mergers.
Warner Bros Discovery emerged last year from the union between AT&T’s WarnerMedia unit and Discovery, featuring a diverse portfolio encompassing brands like Discovery Channel, Warner Bros. Entertainment, CNN, HBO, Cartoon Network, and iconic franchises like Batman and Harry Potter.
Industry reports indicate an impending wave of consolidation within the media sector, with the undeniable dominance of Netflix and major tech firms evident not just financially but also in terms of content portfolios and subscriber counts.
Netflix’s recent measures to curb account-sharing led to the creation of new accounts, predominantly in the US, Canada, and Europe, increasing its global subscriber base to 247.2 million.
In comparison, Paramount Plus has 63.4 million subscribers, while Warner Bros Discovery counts 95 million as of November 2023.
Source-BBC
