Warner Bros, $WBD, in talks to merge with Paramount, $PARA

Warner Bros. Discovery and Paramount Global have engaged in discussions regarding a potential merger, as confirmed by Variety. CEO of Warner Bros. Discovery, David Zaslav, had a lunch meeting with Paramount Global CEO Bob Bakish in New York, where they explored the possibility of merging the two media companies. Zaslav also discussed the potential merger with Shari Redstone, who owns a controlling stake in Paramount Global through National Amusements Inc.

While representatives for Paramount Global and Warner Bros. Discovery declined to comment, sources suggest that the talks are in the early stages, and the terms of the potential merger remain undisclosed. Both companies, with diverse assets in TV, film, sports, and streaming, may consider combining their resources to enhance scale and operational efficiencies. The potential merger could involve pooling assets like the Max and Paramount+ premium streaming services to compete more effectively with major players such as Netflix and Disney's Disney+ and Hulu.

On the film side, Warner Bros. Discovery could acquire valuable properties from Paramount Pictures, including renowned franchises like Terminator, Transformers, Mission: Impossible, Top Gun, A Quiet Place, and Star Trek. In return, Paramount Global would gain access to Warner Bros. Pictures' portfolio, which includes the DC Extended Universe films, Harry Potter, and Lord of the Rings franchises. A merged entity might also integrate their TV operations, combining networks such as CNN, HBO, CBS, Comedy Central, MTV, and Nickelodeon.

Warner Bros. Discovery, formed through Discovery Inc.'s acquisition of WarnerMedia from AT&T, and Paramount Global, resulting from the merger of CBS and Viacom, could potentially create a media powerhouse with a diverse range of content and services.