Media conglomerate Warner Bros. Discovery and Paramount Global have begun talks about a possible merger, creating an entertainment and news giant.
Warner Bros. CEO David Zaslav and Paramount CEO Bob Bakish met for several hours at the latter company’s headquarters in New York to discuss the possible merger, according to CNN, which attributes the information to two people familiar with the subject.
It also indicates that spokespersons for these companies did not want to comment.
It highlights that the possible merger of these two media would cover the Warner Bros. and Paramount studios, as well as CBS, CNN and other cable television assets.
Remember that Zaslav has commented in recent months about seeking new assets to boost Warner Bros. Discovery’s content offerings.
It also indicates that Shari Redstone, the heiress of Paramount’s parent company, National Amusements, has been in talks to sell her stake in the company, which has been in the family for decades.
According to the network, a person familiar with the matter confirmed that Zaslav also spoke with Redstone about a possible agreement.
The talks come as both companies are saddled with heavy debt, so Warner Bros. Discovery has been cutting costs. In the third quarter of this year its debt amounted to 45.1 billion dollars, compared to 49.3 billion at the beginning of 2023.
Zaslav’s success in getting rid of debt is one of the main reasons the company’s shares are up 23 percent this year. In comparison, Disney is up just 5 percent and Paramount is down 8 percent, CNN further notes.
And although Paramount’s debt is $15.7 billion, several people who have spoken with Redstone about his shares in the company, including David Ellison, at Skydance, and Gerry Cardinale, at RedBird Capital.