NEW YORK (CelebrityAccess) — Warner Bros. Discovery is reportedly in talks about a possible merger with rival streamer and content company Paramount.
The deal would consolidate properties such as CNN, HBO, CBS, The Cartoon Network, CNN, DC Entertainment, MTV, Comedy Central, and Showtime, as well as the streaming services Paramount+ and Max under one banner.
Axios, who first reported on the potential merger, said that Warner Bros. Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish on Tuesday in New York City to weigh a potential merger between the two companies.
Zaslav has also raised the potential of a merger between the two companies with Shari Redstone, the owner of Paramount’s parent company, Axios reported.
The tie-up between the two companies makes a degree of business sense in the era of cord cutters and the apparent slow but steady demise of linear television. Paramount’s content offerings, including television networks such as MTV, Nickelodeon and Comedy Central, would provide Warner Bros. Discovery with additional leverage in negotiations with cable distributors, such as Comcast, the New York Times noted.
Additionally, the tie-up of the two companies would further bolster on demand content offerings, potentially helping the merged company’s streaming platform to retain subscribers while reducing the platform’s reliance on expensive original content.
The deal would also provide access to CBS’s deal with the NBA, potentially making games accessible to wider audiences and creating an incentive for future renewal negotiations with the league.
However, the deal may face regulatory scrutiny amid the increasing consolidation of the media industry. The financing of the deal may prove challenging as well, with both companies holding significant debt, including about $15 billion for Paramount and nearly $45 billion for Warner Bros. Discovery, though the company has worked to reduce its leverage in recent months.
