Paramount, Warner Bros Discovery Discuss Merger; Would Consolidate Streaming Services
The chief executives of Warner Bros. Discovery and Paramount Global have discussed the possibility of merging their media companies to consolidate their respective streaming services.
Preliminary Talks About Merger
The CEOs of Warner Bros. Discovery and Paramount Global, David Zaslav and Bob Bakish, recently met to discuss the possibility of merging their media companies into one. The talks were described as preliminary in nature. This potential merger would involve consolidating their respective streaming services, such as Max, Discovery+, and Paramount+, to compete with larger services like Netflix and Disney+.
Axios reported on the meeting, revealing that the CEOs had their conversation the day before. Paramount Global and Warner Bros. Discovery declined to comment on the discussions. Zaslav leads Warner Bros. Discovery, which emerged as an entity in the early part of last year after the combination of Warner Media and Discovery. Paramount Global started using that name in 2022.
Benefits for Streaming Business
If the merger were to occur, the combined company could potentially benefit in the streaming business by leveraging their primary platforms. This aspect of their discussions was mentioned during their meeting, according to Axios. The talks also included discussions between Zaslav and Shari Redstone.
Charles Gasparino of FOX Business reported that Zaslav had discussed a possible purchase with Bakish of Shari Redstone's 'controlling' stake in parent National Amusements. However, Gasparino characterized these talks as very preliminary. The potential merger between Warner Bros. Discovery and Paramount Global would likely impact the consideration of a potential streaming deal between Paramount Global and Apple, which was previously reported.
Subscriber Count and Stock Performance
Warner Bros. Discovery announced in early November that its global subscriber count across HBO, Max, and Discovery+ totaled 95.1 million at the end of the third quarter. Meanwhile, Paramount Global's Paramount+ had approximately 63 million subscribers. Shares of Paramount Global have experienced a decline of over 10% since the beginning of the year, while Warner Bros. Discovery's stock price has risen by 18%.
These developments in the media industry reflect the ongoing competition and consolidation in the streaming market as companies aim to reach and retain a larger audience. The potential merger of Warner Bros. Discovery and Paramount Global could be a significant move in this landscape.
