Warner Bros Discovery And Paramount In Merger Talks

According to several media sources, Warner Bros Discovery and Paramount Global are in early talks to unite.

The owner of HBO channels and CNN would collaborate on the arrangement with the company behind the Mission Impossible movie and CBS News.

The transaction would unite two of Hollywood’s “Big Five” companies, with Warner and Paramount having a combined market value of $38 billion (£30 billion).

The talks are in their early stages, and a deal may not be reached.

According to the news site Axios, Warner CEO David Zaslav and Paramount CEO Bob Bakish discussed a prospective merger during lunch this week in New York.

Warner Bros Discovery And Paramount In Merger Talks

Streaming episodes and films has forced traditional media businesses to invest swiftly to compete with Netflix, Amazon Video, and Apple TV.

Warner and Paramount have had to commit to significant cost-cutting to reduce billions of dollars in losses from their video streaming businesses.
As a result, their stock prices remain significantly below their all-time highs in the early days of streaming.

According to Axios, the CEOs discussed how their respective companies’ primary streaming services, Paramount Plus and Max (previously HBO Max), could unite to better compete with Netflix and Disney Plus.

The company is under a lot of pressure to find a buyer or strategic partner because of the amount of debt accumulated in recent years while expanding its streaming service.

Warner Bros Discovery And Paramount In Merger Talks

According to analysts, Warner Bros., the firm behind this year’s blockbuster Barbie, has a little better cash situation, partly thanks to some astute mergers.

Last year, AT&T’s WarnerMedia division and Discovery merged to form Warner Bros. Discovery, which comprised Discovery Channel, Warner Bros. Entertainment, CNN, HBO, Cartoon Network, and properties such as Batman and Harry Potter.

Paramount owns CBS, the BBC’s US partner.

According to media reports, additional industry consolidation is on the way.

Netflix’s and other large internet companies’ domination in the media arena is undeniable, not just in terms of financial performance but also in enormous portfolios of shows and subscriber numbers.

Warner Bros Discovery And Paramount In Merger Talks

In recent months, Netflix’s crackdown on account-sharing resulted in the creation of new accounts, primarily in the United States, Canada, and Europe, increasing the company’s overall number of customers to 247.2 million worldwide.

As of November 2023, the overall number of subscribers to Paramount Plus is 63.4 million, and the total number of members to Warner Bros Discovery is 95 million.

Both Paramount and Warner Bros. refused to comment.

The studios, located in Hollywood, California, is one of the oldest and most renowned film studios in the world. Founded in 1912, it has been a major player in the entertainment industry, producing numerous iconic films and television shows.

Paramount has a long history of creating blockbuster movies and has been a significant contributor to the development of American cinema.

The studio continues to be a dominant force in the entertainment business, producing high-quality content that resonates with audiences worldwide.

SOURCE – (AP)