Another major studio merger could be in the works as Axios’ Sara Fischer has reported that the heads of Warner Bros Discovery and Paramount Global have had talks to discuss that very subject.
Multiple sources told Axios that Warner Bros Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish on Tuesday in New York City to discuss a possible merger. Zaslav also spoke with Shari Redstone, who owns Paramount’s parent company. Deadline confirmed that such talks did take place, but a source added that “it was all rather preliminary.“
Both companies have been dealing with some fairly significant debt issues, with Zaslav in particular going to extreme measures to cut costs, including shelving several finished movies before they had to the chance to be released, most notably Batgirl. It’s far too early to say whether a merger between Warner Bros and Paramount will move ahead, but they will be blocked from doing so until next April, which is when the two-year lock-up period following the WarnerMedia and Discovery merger will expire.
The potential merger would bring many iconic entertainment franchises under one roof, including Star Trek, Harry Potter, Looney Tunes, Transformers, Mission: Impossible, DC, and more. It would also likely see the two streaming services, Max and Paramount+, combine in order to more effectively challenge Netflix and Disney+. While another giant media conglomerate may be good for business, I fear the effect it will have on the creative process.
Paramount sold Simon & Schuster earlier this summer for $1.62 billion and has been looking to sell the BET cable channels as well. A source told THR that Byron Allen, the founder of Allen Media Group, reportedly offered $3.5 billion for the BET assets (which includes BET, BET+ and VH1) in a letter to Paramount executives today.
Nothing may come of this potential Warner Bros and Paramount deal, but I’m certain this won’t be the last major media merger to come our way. One studio to rule them all.
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