David Zaslav, CEO of Warner Bros. Discovery, Inc. WBD, and Bob Bakish, CEO of Paramount Global, met on Tuesday and spoke for several hours about a potential merger. Here's what you need to know.
The Details: According to an Axios, the meeting focused on areas such as how the companies could complement one another.
Warner Bros. Discovery's ability to leverage Paramount's children's programming assets and the combination of CBS News and CNN into a massive global news outlet were cited as possible benefits of the merger.
The potential merger could also have large implications for the industry, creating a giant in news and entertainment.
While the talks are only in the beginning stages, the companies face pressure to merge, not only due to Paramount's need for a strategic partner or buyer amid piling debt but also in the face of Big Tech's growing media presence.
It was speculated by a source familiar with the discussions that the merger could follow Zaslav's strategy for past mergers, such as when merging with Scripps in 2018.
It was reported that Warner Bros. Discovery had hired bankers to assess the deal. Furthermore, Zaslav also has spoken to the owner of Paramount's parent company, Shari Redstone.
Related Link: Why Is Paramount Global Stock Trading Lower Wednesday?
PARA, WBD Price Action: Shares of PARA were down 1.42% at $15.28 while shares of WBD were down 1.79% at $11.45 in the after-hours session at the time of publication, according to Benzinga Pro.
Image by Frank Reppold from Pixabay
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
