Two of the big players in the entertainment industry are believed to be in the early stages of talks for a potential merger. It has been reported that Warner Bros Discovery and Paramount Global are considering merging their businesses together in order to compete with other industry giants. The potential merger could result in consolidation of the business market worth $38 billion.
A merger would bring together Warner Bros’ HBO and CNN with Paramount’s CBS. Both these studios are in the big 5 of the industry. The biggest threat faced by both these studios come from the streaming business. Paramount has invested heavily in the streaming business and is under heavy debt because of it.
On the other hand, streaming giants like Netflix and Disney Plus are performing better in terms of business by dominating a large share of the market. A merger between their streaming services, Max and Paramount Plus is also under consideration. A merger at the level of the streaming platform would give a good fight to Netflix.
The talks are still in the very early stage and it’ll be interesting to find out how things move forward. The shape of the entertainment industry can potentially be altered if a deal is made.
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