What a Warner Bros Discovery and Paramount Merger would mean

Warner Bros Discovery CEO David Zaslav and Paramount Global CEO Bob Bakish held discussions recently about a potential merger between their entertainment empires, marking a pivotal moment in the entertainment industry.

What

• According to a Deadline report, the CEOs met over lunch in New York to deliberate on the prospects of merging their companies.

• Zaslav also engaged in discussions with Shari Redstone, who holds a controlling stake in Paramount Global, regarding the possible amalgamation of their entities.
• The meeting occurred at Paramount's headquarters in Times Square on Tuesday.

What this deal means

• As of Wednesday (December 20), Warner Bros Discovery was valued at about $29 billion, significantly higher than Paramount's valuation of just over $10 billion, signaling a potential merger might not occur on equal terms.

• The merger could witness a consolidation of their TV, film, sports, and streaming assets, enhancing operational efficiency on a larger scale.

• This amalgamation might pose a competitive challenge to streaming giants like Netflix, Disney's Disney+, and Hulu, especially if they opt to merge their premium streaming services Max and Paramount+.

• The merger could also involve sharing children's programming between the entities, such as merging WB Cartoon Network and Paramount's Nickelodeon, aligning with WBD's long-term streaming strategies.

What about the films?

• In the event of the merger, Warner Bros. Discovery stands to acquire major film franchises from Paramount Pictures, including Terminator, Transformers, Mission: Impossible, Top Gun, A Quiet Place, Teenage Mutant Ninja Turtles, The Godfather, Paranormal Activity, Scream, and Star Trek.

• On the other hand, Warner Bros. Pictures already has the DC Extended Universe films, along with the Harry Potter and Lord of the Rings franchises. 

As of now, no official announcement has been made by either company, with discussions stated to be in the early stages