Warner Bros recently merged with Discovery which led to David Zaslav taking over as CEO of the company. Now, however, talks have reportedly started for WB to merge with another major studio.
This is something we’ve seen quite often in recent years. For example, Amazon acquired MGM, and Disney notoriously acquired 20th Century Fox. It was already a major move when Warner Bros and Discovery merged, something which changed both companies forever. If this next merge happens, however, it’ll be a monumental shift in the industry.
As reported by Axios, “Warner Bros. Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish on Tuesday in New York City to discuss a possible merger.” This indicates that Warner Bros could very well merge with Paramount.
The publication adds that “Zaslav also has spoken to Shari Redstone, who owns Paramount’s parent company, about a deal.” They note that “WBD’s market value was around $29 billion as of Wednesday, while Paramount’s was just over $10 billion.” Because of this “any merger would not be of equals.”
Discussions between Zaslav and Bakish reportedly revolved around how “their companies could compliment on another.” The following example was given:
“Each company’s main streaming service – Paramount+ and Max – could merge to better rival Netflix and Disney+.”
It’s also unclear whether WBD would simply purchase Paramount Global or its parent company, National Amusements Inc.( NAI). However, Axios reports “that both options are on the table.” As such, “WBD is said to have hired bankers to explore the deal.”
It’s been further stated that “Paramount is under enormous pressure to find a strategic partner or buyer, as it’s staring down a mountain of debt.” There are certainly plenty of opportunities for both studios if they were to merge. One such example is that “CBS News could be combined with CNN to create a global news powerhouse.”
Additionally, it looks like executives are certain such a deal would be approved:
“Executives are confident that the deal would receive regulatory approval, despite D.C.’s active antitrust climate. Notably, Warner Bros. Discovery doesn’t own a broadcast network, which would clear an easier path than would a combination with a company like NBC owner Comcast.”
Of course, this should be taken with a grain of salt. As the publication concludes, “Talks between WBD and Paramount are still early, and may not ultimately result in a deal.” Nevertheless, given Zaslav’s history for mergers, and Paramount’s eagerness to avoid their debt, it’s certainly an interesting possibility. We’ll just have to keep an eye out and see what happens.