Paramount, WBD call ‘time out’ on early merger talks

Talks about a potential deal to combine Paramount Global and Warner Bros. Discovery have halted, according to a CNBC report. 

The two companies had reportedly entered into early talks about merging starting in 2023.

Preliminary talks started in late 2023 with more serious discussions taking place in January 2024.

However, the talks appear to have been put to a halt, according to CNBC sources. 

No reason for the pause was given, nor was there any indication of who might have played the biggest role in stopping talks.

Riddled with debt, Paramount Global has been quietly seeking a buyer. It reportedly has a special internal committee whose job it is it to sort through offers. Allen Media Group made a $30 billion offer for Paramount earlier in 2024, though the company has often made large offers that never materialize. 

Paramount and WBD could also opt to re-open talks at a later date. In some ways, the two offer some ideal opportunities for synergy, such as combining CBS News and CNN’s news operations. That move, which has been common idea for years, would likely result in job losses but also allow both operations to produce content more efficiently.

Other opportunities would include eliminating duplicative backend administrative functions and shuttering or combining similar properties, divisions or brands.

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Movie studio operations could also be combined and the two companies have sports rights and entertainment libraries that largely complement each other.

Meanwhile, there have been separate reports that NBCUniversal and Paramount have explored the idea of merging their Peacock and Paramount+ streamers.