Warner Bros. Discovery and Paramount hold talks for potential merger

Warner Bros. Discovery and Paramount Global have held talks for a potential merger that would see two of the world’s biggest media companies join together, according to reports.

The talks are in a “very early stage” and the merger may still not go ahead, sources close to the talks claim.

Warner Bros. boss David Zaslav and Paramount chief Bob Bakish met on Tuesday (December 19) in New York City to discuss a possible deal, as first reported by Axios (viaThe Independent).

The merger would see the combination of two of Hollywood’s traditional “Big Five” studios. Warner and Paramount currently have a combined market value of around $38bn (£30bn).

According to reports, the company heads discussed the merger over lunch in Paramount’s headquarters in Times Square in a meeting that lasted several hours, sources told Axios.

Zaslav Bakish reportedly explored how the two companies would complement each other to compete against rival platforms. One potential avenue is to combine their respective streaming platforms, Paramount+ and Max (formerly HBO Max), to enhance their competitiveness against the likes of Netflix and Disney+.

It was also reported that Zaslav helf a meeting with Paramount chair Shari Redstone, whose family company holds a majority stake in Paramount, the entity that owns CBS and other television assets.

The potential deal would see CBS News combined with CNN, and CBS’s crime dramas – such as NCIS and Criminal Minds – teamed up with Investigation Discovery and TruTV.

Reports of a possible merger come as Paramount faces substantial pressure to find a buyer or forge a strategic partnership after it reported a long-term debt of $15.6bn.

While it is considerably less than Warner Bros’ debt of $43.5bn, Warner Bros. Discovery still holds a greater market value –  $28.4bn over Paramount Global’s $10.3bn.

Both companies were hit hard as consumers transitioned from cable TV subscriptions to streaming services such as Netflix, Amazon Prime Video, and Apple TV+.

Last year, WarnerMedia and Discovery joined forces to form Warner Bros. Discovery, in a $43bn deal that saw them bring together Discovery Channel, Warner Bros Entertainment, CNN, HBO and Cartoon Network.

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