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Warner Bros. Discovery and Paramount Global discussing possible merger, sources say
Representatives for Paramount Global and Warner Bros. Discovery refrained from providing comments. The discussions were initially reported by Axios.
Warner Bros. Discovery and Paramount Global have engaged in discussions regarding a potential merger, Channel3 NOW has learned.
The CEOs of both companies, David Zaslav from Warner Bros. Discovery and Bob Bakish from Paramount Global, reportedly met on Tuesday in New York to explore the possibility of a merger.
Additionally, Zaslav has communicated with Shari Redstone, who holds a controlling stake in Paramount Global through National Amusements Inc., regarding the potential combination of the two companies.
Representatives for Paramount Global and Warner Bros. Discovery refrained from providing comments. The discussions were initially reported by Axios.
The specific terms of a potential merger between the two companies are not currently available. Warner Bros. Discovery was established through Discovery Communications’ acquisition of WarnerMedia from AT&T, a transaction that concluded in April 2022.
Paramount Global, on the other hand, resulted from the merger of CBS and Viacom, a move orchestrated by Shari Redstone, and was completed in December 2019.
Reports indicate that Shari Redstone, considering a sale of her shares in National Amusements Inc. (NAI), engaged in discussions with Skydance Media CEO David Ellison, who partnered with private-equity firm RedBird Capital.
Additionally, she met separately with departing Activision Blizzard CEO Bobby Kotick to explore potential deals, as reported by the Journal. Concurrently, there have been considerations within Paramount management to implement layoffs of over 1,000 employees in early 2024 as a cost-cutting measure.
According to sources, senior executives at Warner Bros. Discovery felt compelled to expedite discussions with Paramount Global following reports about Skydance’s interest in acquiring Redstone’s NAI stake.
Paramount Global, as of the end of Q3, reported long-term debt at $15.6 billion, notably less than Warner Bros. Discovery, whose debt load stood at $43.5 billion.
