The Strategist

Warner Bros. negotiates merger with Paramount

12/22/2023 - 02:32

Axios claimed, citing unnamed sources, CEOs of Paramount Global and Warner Bros. Discovery (WBD), the US media holding companies, explored the possibility of merging their businesses.

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The discussion, according to the insiders, took place at Paramount's Times Square offices and lasted for several hours. Among other things, the parties talked about the possibility of combining Max streaming services with Paramount+. Although a source claims that WBD is evaluating both alternatives, it is unclear at this time if the business intends to acquire Paramount Global or its parent company National Amusements Inc. WBD has already requested that banks look into any transactions.

The merger would result in Walt Disney Co. facing more competition from a firm with a $40 billion market value in the US entertainment sector. Furthermore, a fresh round of industry consolidation may be sparked by the transaction.

There may be a lot of synergies from WBD and Paramount's merger, Axios notes. WBD will be able to market Paramount brands through its global network, and Paramount's animated series and children's films may prove to be a valuable asset for the long-term growth of WBD's streaming business.

Furthermore, in the event of a merger, it is possible that CNN and CBS News may combine, and the sports channels of the two businesses are anticipated to follow suit.