Warner Bros. Discovery and Paramount Global may merge, Axios sources have learned. According to them, on December 19, the CEO of Warner Bros. met with the head of Paramount, Bob Bakish, to discuss this prospect.
Market price of Warner Bros. The discovery as of December 20 amounted to approximately $29 billion, the publication notes. Paramount Global is worth just over $10 billion.
At the same time, the debt burden at the end of the latter’s third quarter amounted to $15.6 billion. Warner Bros. Discovery: This figure is $43.5 billion at the end of the third quarter.
The negotiations took place at Paramount headquarters; The senior managers spoke for several hours. According to sources, David Zaslav also spoke with National Amusements head Sheri Redstone, head of National Amusements, which owns a majority stake in Paramount Global.
Possible transaction scenarios
- According to sources, this could be an M&A deal, which would involve Paramount Global transitioning to control of Warner Bros. Discovery.
- The option of absorbing both structures by National Diversions was also discussed.
In the event of a merger, the companies’ streaming services could be combined (Max and Paramount+). This will allow them to compete with Disney+, Netflix and Hulu.
The publication emphasizes that the negotiations are at the discussion level, there are no specific details at this stage.
At the beginning of 2019, the Walt Disney film company closed an agreement to buy part of the assets of the 21st Century Fox holding company. Its amount was 71 billion dollars.
Author:
Natalia Gormaleva
Source: RB
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