The emblem of Warner Brothers Discovery
Warner Brothers Discovery shares slid greater than 5 % Wednesday after studies emerged that the media and leisure big is exploring a merger with rival Paramount Global.
Warner Brothers Discovery chief government David Zaslav met with Paramount Global boss Bob Bakish for a number of hours to debate the potential for merging the businesses, Axios reported, citing unnamed sources.
The talks — which befell on Tuesday in New York — have been described as preliminary, with the end result unsure. Zaslav has additionally spoken with Shari Redstone, who owns Paramount’s father or mother firm,concerning the potential for adeal, Axios reported.
Warner Brothers Discovery manufacturers embody Newz9, HBO,and its eponymous movie studios, whereas Paramount’s properties embody its film studios of the identical identify and the CBS broadcasting group. Zaslav and Bakish mentioned methods the businesses may construct on each other’s strengths, similar to by combining their streaming companies to raised compete with Netflix and Disney+, the report stated. Warner Brothers Discovery had a market worth of about $28.four billion primarily based on its closing share value Wednesday — greater than double the roughly $10.three billion valuation of Paramount Global primarily based on its closing share value.
Warner has employed bankers to explorean acquisition, Axios reported. A merger of that dimension may spark additional consolidation within the media trade and attract tense scrutiny by US regulators.
