Warner Bros Discovery and Paramount in merger talks
---------------------------------------------------
Warner Bros Discovery and Paramount Global are in early talks
to merge, according to multiple media reports.

The deal would see the owner of HBO channels and CNN team up
with the studio behind the Mission Impossible films and
CBS News. 

Warner chief executive David Zaslav and Paramount chief
Bob Bakish discussed a possible deal over lunch in New York
this week, as first reported by Axios.

Talks are at an early stage and a deal may not happen, sources
told the FT.

The deal would bring together two of Hollywood's "Big Five"
studios, with Warner and Paramount's combined market value
standing at $38bn (£30bn).

Streaming of shows and films has meant that traditional media
companies have had to invest quickly to compete with the likes
of Netflix, Amazon Video and Apple TV.

Warner and Paramount have had to commit to some deep
cost-cutting, as they try to minimise losses running into the
billions of dollars from their video streaming services.

As a result their stock prices continue to trade well below
their highs in the early days of streaming.

According to Axios, the chief executives discussed over lunch
how each company's main streaming service, Paramount Plus and
Max (formerly HBO Max), could merge to better take on rivals
Netflix and Disney Plus.

Paramount is under a lot of pressure to find a buyer or
strategic partner because of its levels of debt accrued in
recent years whilst bulking up its streaming service.

Analysts say Warner has a slightly better cash position, partly
due to some shrewd mergers.

Last year, AT&T's WarnerMedia unit and Discovery merged to
become Warner Bros Discovery, with a portfolio that included
Discovery Channel, Warner Bros. Entertainment, CNN, HBO,
Cartoon Network and franchises such as Batman and Harry Potter.

Media reports suggest that more consolidation is coming in the
industry.

The dominance of Netflix and other big technology companies in
the media space is undeniable - not just in terms of their
financial performances but also through their extensive
portfolios of shows and subscriber numbers.

According to Statista, Netflix added 5.9m paid subscriptions
worldwide between March and June in 2023 and 8.8m from July to
September.

The company's crackdown on account-sharing in these months led
to new accounts created, mostly in the US, Canada and the Europe,
bringing its total number of subscribers to 247.2 million
globally.

In comparison, Paramount Plus total subscribers stand at
63.4 million and Warner Bros Discovery 95 million as of
November 2023.

<https://www.bbc.co.uk/news/business-67782869>