Warner Brothers Discovery and Paramount are in merger talks
Shares of Warner Brothers Discovery took a 5% hit amid rumors of potential merger talks with Paramount Global. Warner Brothers Discovery CEO David Zaslav and Paramount Global CEO Bob Bakish met in New York this week to discuss the possibility of a merger between the two media giants, according to multiple media reports. This could lead to further consolidation in the media industry and draw attention from US regulators.
They are combining strengths to rival streaming giants
The initial conversations between Zaslav and Bakish centered on how their companies could complement each other, such as by merging their streaming services to better compete with Netflix and Disney+. Warner Brothers Discovery boasts brands like CNN, HBO, and its namesake film studios, while Paramount's assets include its eponymous movie studios and the CBS broadcasting group.
Market valuations and acquisition exploration are underway
With a market value of around $28.4 billion, Warner Brothers Discovery is worth more than double Paramount Global's estimated $10.3 billion valuation. Axios reports that Warner has enlisted bankers to explore an acquisition. This potential merger could significantly alter the future of news and entertainment by combining both companies' news, sports, and entertainment brands.
Shari Redstone is involved in the potential sale
Shari Redstone, owner of National Amusements, Paramount's parent company, has been considering selling its top media asset for some time. Redstone has reportedly met with Skydance Media CEO David Ellison and Activision CEO Bobby Kotick about a possible sale in recent months. Zaslav has also spoken with Redstone about the prospect of a deal between Warner Brothers Discovery and Paramount.
