The film and series industry could experience a new corporate movement. David Zaslav and Bob Bakish met to discuss this possibility.
With Hollywood recovering activity after historic strikes of screenwriters and actors this 2023, a new corporate movement could shake the scene. A report states that the CEOs of Warner Bros. Discovery (WBD) and Paramount Global they kept a meeting for discuss a possible merger.
The meeting took place on Tuesday at Paramount’s headquarters in Times Square, New York. David Zaslav (CEO of WBD) and Bob Bakish (Paramount CEO) talked about how the companies could complement each other and the benefits that a streaming platform that combines Max and Paramount+ would have to compete with Netflix and Disney+.
Zaslav also spoke about the possible agreement with Shari Redstone, head of the company that owns Paramount, National Amusements. Until now no decision on whether WBD would buy Paramount Global alone or directly your parent company. A source told Axios in its report that “both options are on the table.”
The reasons behind the possible merger between Warner Bros. Discovery and Paramount
Warner Bros Discovery
The merger would clear advantages for both companies. Warner Bros. Discovery could use its international distribution system to give you more arrivals to Paramount franchises and use these to improve your catalog. At the same time, C.B.S. is part of Paramount and its news services as well as dramas (NCIS or Criminal Minds) could combine well with CNN and Max.
By ParamountAxios reports that The company is under pressure to find a partner or buyer due to the large debt they have incurred. The company’s shares rose 12% at the beginning of the month following a report that Skydance Media and RedBird Capital Partners intended to buy a majority of shares in National Amusements. Earlier this year the company restructured some of its debt and adjusted by selling Simon & Schuster.
The context of the merger: entertainment companies lose ground to Big Tech
lThe strike revealed the depth of a crisis that was already visible. Entertainment companies face a tough time profits reduced by the drop in the box office and the low profitability of a bubble streaming which exploded quickly.
In this framework, streaming and production companies are part of large technology companies (or Big Tech), such as Apple and Amazon, They begin to obtain a central role due to their external financing and others such as Disney, Warner Bros. Discovery and Paramount go to consolidation to give the fight
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
