NEW YORK (CelebrityAccess) — Warner Bros. Discovery is reportedly in talks about a possible merger with rival streamer and content company Paramount.
The deal would bring together properties including CNN, HBO, CBS, The Cartoon Network, CNN, DC Entertainment, MTV, Comedy Central and Showtime, as well as streaming services Paramount+ and Max under a single banner.
Axios, which was first to report on the potential merger, said Warner Bros. CEO David Zaslav. Discovery, met Tuesday in New York with Paramount Global CEO Bob Bakish to assess a possible merger between the two companies.
Zaslav also discussed the possibility of a merger between the two companies with Shari Redstone, owner of Paramount’s parent company, Axios reported.
The tie-up between the two companies makes some sense from a business perspective in the age 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 added leverage in negotiations with cable companies, such as Comcast, noted the New York Times.
Additionally, bringing the two companies together would further strengthen on-demand content offerings, potentially helping the combined company’s streaming platform retain subscriber loyalty while reducing the platform’s reliance on expensive original content.
The deal would also provide access to CBS’ deal with the NBA, potentially making the games available to a wider audience and creating incentive for future renewal negotiations with the league.
However, the deal could face regulatory scrutiny amid increasing consolidation in the media industry. Financing the deal could also prove difficult, with both companies holding significant debts, including about $15 billion for Paramount and nearly $45 billion for Warner Bros. Discovery, although the company has worked to reduce its debt in recent months.
