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Warner Brothers Discovery explores merger: report

While far from certain, a merger between Warner Brothers Discovery and Paramount Global could spark further consolidation in the media and entertainment industry
While far from certain, a merger between Warner Brothers Discovery and Paramount Global could spark further consolidation in the media and entertainment industry.

Warner Brothers Discovery shares slid more than 5 percent Wednesday after reports emerged that the media and entertainment giant is exploring a merger with rival Paramount Global.

Warner Brothers Discovery chief executive David Zaslav met with Paramount Global boss Bob Bakish for several hours to discuss the possibility of merging the companies, Axios reported, citing unnamed sources.

The talks—which took place on Tuesday in New York—were described as preliminary, with the outcome uncertain.

Zaslav has also spoken with Shari Redstone, who owns Paramount's parent company, about the potential for a deal, Axios reported.

Warner Brothers Discovery brands include CNN, HBO, and its eponymous film studios, while Paramount's properties include its of the same name and the CBS broadcasting group.

Zaslav and Bakish discussed ways the companies could build on one another's strengths, such as by combining their to better compete with Netflix and Disney+, the report said.

Warner Brothers Discovery had a of about $28.4 billion based on its closing share price Wednesday—more than double the roughly $10.3 billion valuation of Paramount Global based on its closing share price.

Warner has hired bankers to explore an acquisition, Axios reported.

A of that size could spark further consolidation in the media industry and draw intense scrutiny by US regulators.

© 2023 AFP

Citation: Warner Brothers Discovery explores merger: report (2023, December 21) retrieved 19 April 2024 from https://techxplore.com/news/2023-12-warner-brothers-discovery-explores-merger.html
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