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David Zaslav & Robert Marc Bakish
Warner Bros. Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish over Christmas to discuss a possible merger.
The merger of these two giants would generate a shake-up in entertainment and news that would encompass the Warner Bros. and Paramount studios, as well as CBS, CNN and other cable television assets.
Warner Bros. Discovery CEO David Zaslav met over Christmas with Paramount Global CEO Bob Bakish, and “When the river sounds, it brings stones” as the saying goes. What did they talk about? Spokespeople for the conglomerates told CNN about a possible merger between the companies. News that began to circulate like wildfire throughout the continent, surpassing borders. The possible merger of these two huge media outlets would create an entertainment and news giant that would encompass the Warner Bros. and Paramount studios, as well as CBS, CNN and other cable television assets.
The meeting, which was first reported by Axios, took place at Paramount’s headquarters in New York’s Times Square.
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Spokespeople for these companies declined to comment further. But it is known that this possible merger could shake up the media sector again, these initiatives are not a surprise. David Zaslav, who led a series of acquisitions at Discovery, has in recent months mentioned seeking additional assets to boost Warner Bros. Discovery’s content offerings.
NEED OR STRATEGY?
Analysts say Paramount needs a strategic partner to survive in today’s media landscape. Shari Redstone, the family heir to Paramount’s parent company, National Amusements, has reportedly been in talks to sell her stake in the company.
There are experts who anticipate that consolidation will continue as traditional entertainment companies increase their efforts to compete with the technological titans of Silicon Valley, which are increasingly entering the content space.
UNHAPPY INVESTORS: Shares of Warner Bros. Discovery (WBD) fell immediately after Axios released its report, ending the day down 5.7%. It fell another 1.4% in after-hours trading. Paramount shares initially rose following the report but fell a little less than 1% afterward.
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