Paramount and MAX Merger Rumor

Wild Turkey

Wild Turkey

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Warner Bros. Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish on Tuesday in New York City to discuss a possible merger, Axios has learned from multiple sources.

Why it matters: The combination would create a news and entertainment behemoth that would likely trigger further industry consolidation.

  • Zaslav also has spoken to Shari Redstone, who owns Paramount's parent company, about a deal.
  • WBD's market value was around $29 billion as of Wednesday, while Paramount's was just over $10 billion, so any merger would not be of equals.
Details: The meeting between Zaslav and Bakish, which sources say lasted several hours, took place at Paramount's headquarters in Times Square.

  • The duo discussed ways their companies could complement one another. For example, each company's main streaming service — Paramount+ and Max — could merge to better rival Netflix and Disney+.
  • It's unclear whether WBD would buy Paramount Global or its parent company, National Amusements Inc. (NAI), but a source familiar with the situation says that both options are on the table.
  • WBD is said to have hired bankers to explore the deal.
Between the lines: The deal could drive substantial synergies.

  • WBD could use its international distribution footprint to boost Paramount's franchises, while Paramount's children's programming assets could be essential to WBD's long-term streaming ambitions.
  • CBS News could be combined with CNN to create a global news powerhouse. CBS' crime dramas, such as "NCIS" and "Criminal Minds," could be combined with Investigation Discovery and TruTV.
  • CBS Sports' footprint could be combined with WBD's. For example, CBS and WBD's Turner Sports currently share TV rights for March Madness.
 
Evidently, Paramount is deeply in debt and needs a bailout.
 
The best 2 streaming services merging would be interesting. I like streaming consolidation, but I fear monopolies.
 
Wild Turkey said:
Evidently, Paramount is deeply in debt and needs a bailout.
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Both are actually carrying a ton of debt. Kind of a weird move but Zaslav gonna Zaslav. My only logical conclusion here is they want the IP Paramount has to further entice some other larger company to buy them all out.

Personally I hope it gets shot down. These media mergers are not a good thing and it sucks for consumers and content creators. But considering Disney's purchase of FOX was allowed to go thru (a much larger deal), I don't foresee this one having much trouble
 
The streaming platforms have been in this weird ebb and flow where there's a few, so more open up, then there's too many but they've shelled out big bucks for content, so they have to consolidate, and round and round we go.
 
wildturkey said:
Both are actually carrying a ton of debt. Kind of a weird move but Zaslav gonna Zaslav. My only logical conclusion here is they want the IP Paramount has to further entice some other larger company to buy them all out.

Personally I hope it gets shot down. These media mergers are not a good thing and it sucks for consumers and content creators. But considering Disney's purchase of FOX was allowed to go thru (a much larger deal), I don't foresee this one having much trouble
Click to expand...
Actually what I’m reading is that WB has cash due to its other deals and cuts. That is why the merger is attractive to them.
 
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