Warner Bros. Discovery sinks on report it is in talks to merge with Paramount
investing.comWarner Bros. Discovery (NASDAQ:WBD) shares fell over 5.7% on Wednesday after Axios reported the company is engaged in early talks with Paramount Global (PARA) on a potential merger.
Two CEOs reportedly met in New York City, Axios said citing multiple sources.
Paramount shares closed 2% lower.
This proposed merger would create a formidable entity in the news and entertainment sector, potentially catalyzing further consolidation within the industry.
WBD’s CEO David Zaslav with Shari Redstone, the owner of Paramount's parent company, regarding a potential deal.
Warner Bros. Discovery's market value stands at approximately $29 billion, while Paramount's is just over $10 billion, indicating that any merger would not be on equal footing.
The discussions explored avenues for mutual complementarity, with a notable focus on merging the main streaming services of both companies—Paramount+ and Max.
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