Warner Bros. Discovery and Paramount Global Are Talking About a Merger
In a move that would certainly shake up the status quo in Hollywood, Warner Bros. Discovery and Paramount Global have held talks about a potential merger of the two media giants.
According to Variety, Warner Bros. Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish on Tuesday to discuss a possible merger.
Zaslav has also reportedly talked to National Amusements Inc. head Shari Redstone. The company owns a controlling stake in Paramount Global.
Terms of a Potential Merger Remain Unclear
The terms of a potential merger between the companies, however, remain unclear. Warner Bros. Discovery is the bigger entity, with a market capitalization of $28.4 billion. Paramount Global, meanwhile, has a market cap of $10.3 billion.
A combined Warner Bros and Paramount would have a large pool of assets that spans TV, film, sports, and streaming. If the two companies were to join forces, combining Max and Paramount+ could create a major player in the streaming industry.
Quite the Shakeup
Warner Bros. Discovery was formed when Discovery Communications acquired WarnerMedia from AT&T Paramount Global; meanwhile, it was the result of a merger between CBS and Viacom. That deal was driven by Shari Redstone.
Recently, Paramount management has considered laying off more than 1,000 staffers in early 2024 to cut costs.
Any potential merger between Warner Bros. Discovery and Paramount Global would likely face scrutiny from the United States Justice Department.
While a merger is likely still a long way away, the entertainment industry could be drastically changing before our eyes.