The CEO of Warner Bros Discovery David Zaslav and Paramount Global CEO Bob Bakish held a meeting in New York City on Tuesday to discuss terms of a possible merger, sources reveal.
Their meeting was said to have lasted several hours as the duo discussed various ways each company would complement the other. An example of this is Paramount+ and Max merging to better rival Disney+ and Netflix.
A combination of these platforms would create a news and entertainment giant that is likely to trigger more consolidation in the industry. Shari Redstone, the owner of Paramount’s parent company, has been in talks with Zaslav about a deal.
However, it is unclear if Warner Bros would buy Paramount Global or its parent company, National Amusements Inc (NAI). The deal, if successful, could drive substantial synergies with Warner Bros using its international distribution footprint to boost Paramount’s franchises, while Paramount’s children’s programming assets could be essential to Warner Bros’ long-term streaming ambitions.
In addition, CBS News could be joined with CNN to establish a global news powerhouse. Several CBS crime dramas, such as
“NCIS”
and
“Criminal Minds,”
could be combined with Investigation Discovery and TruTV.
Due to their increasing debt, Paramount is under constant pressure to find a strategic partner or buyer. Their stock rose 12% following a report from Puck that Skydance Media and RedBird Capital Partners were eyeing a potential deal to buy a majority stake in NAI earlier this month.
The talks between Warner Bros. and Paramount are still early and may not ultimately result in a deal. However, given the acceleration of cord-cutting and the growing encroachment of Big Tech on media, neither company can remain on the sidelines for long.
#Clique, what are your thoughts on this?
