Paramount exploring strategic options to cut costs and accelerate profitability
Paramount Global and Warner Bros. Discussion potential streaming merger
Possible partnership could result in extensive volume of hit content across TV, film, and sports genres
Warner Bros. Discovery expressed interest in merging with Paramount
Paramount Global, the media and entertainment company behind Paramount+ streaming service, is reportedly in discussions to merge its platform with an existing streaming entity. According to CNBC's sources, Paramount has been holding active talks with various media and tech companies about a potential co-ownership deal. One of the companies that have expressed interest in merging their services is Warner Bros. Discovery, which owns Max.
The proposed merger could result in a powerful streaming combination offering an extensive volume of hit content across TV, film, and sports genres. Paramount Global has been exploring strategic options to cut costs and accelerate the profitability of its streaming business by partnering with another player. Chris McCarthy, CEO of Showtime/MTV Entertainment Studios and Paramount Media Networks at Paramount Global, discussed two potential partnerships during a recent town hall meeting.
The first option involves entering into a deep, long-term relationship with a leading technology platform that already has the full scale that Paramount is trying to obtain. This would allow the company to focus more on creating hit content and share in all other non-content expenses. The second type of partnership involves joining forces with one or more SVOD players, which would result in an impressive volume of hit content across various genres and attract millions of viewers.
Warner Bros. Discovery has been opportunistic about seeking mergers and acquisitions in the next few years, according to its CEO David Zaslav. The company will be looking for potential partners that are losing money or want to consolidate their streaming businesses with others. Paramount Global previously discussed merging its streaming service with NBCUniversal's Peacock but did not make any progress on that front.
The talks between Paramount and Warner Bros. Discovery are still in the early stages, and no definitive agreement has been reached yet. Both companies declined to comment on the report.
Warner Bros. Discovery has expressed early interest in exploring a streaming joint venture with Paramount Global.
Paramount Global is considering various strategic options to cut costs, sell assets, and accelerate the profitability of Paramount+.
Chris McCarthy discussed two potential streaming partnerships for Paramount Global: one with a leading technology platform and another with one or more SVOD players.
Warner Bros. Discovery will be opportunistic in seeking M&A deals in the next few years.
Paramount Global and Warner Bros. Discovery have previously discussed merging their streaming services but nothing has transpired on that front.
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The article contains some instances of appeals to authority, but no formal or blatant logical fallacies are present. The author reports on the potential streaming partnership between Warner Bros. Discovery and Paramount Global based on confirmed sources and public statements from executives at both companies.
]At this point, the situation more or less involves each company kicking the tires on what such a partnership could look like.[
Paramount Global is holding talks with other entertainment companies about merging its Paramount+ streaming service with an existing platform.
One of the companies that has expressed a desire to reach a deal is Warner Bros. Discovery.
Combining Max and Paramount+ could strengthen both services by allowing them to better compete with Netflix and Disney’s suite of platforms for eyeballs and future content.
Paramount Global reported a loss of $1.67 billion in direct-to-consumer operating income before depreciation and amortization in 2023, narrower than its $1.8 billion loss a year prior.
Max has about 100 million global subscribers, with 52.7 million based in the US.
Paramount Global is also considering partnering with a technology platform.
A merged streaming service would mitigate churn by giving customers more diverse programming and fewer reasons to cancel each month.
Accuracy
Warner Bros. Discovery has expressed a desire to reach a deal.
Paramount Global is considering partnering with a technology platform.
