Streaming Merger Could Birth Entertainment Giant, Will Force Disney Into Submission

in Entertainment, Movies & TV

Two men shaking hands in a business meeting with another man popping up in the corner.

Credit: Inside The Magic

Warner Bros Discovery and Paramount might combine streaming services forces in 2024. Next year might be the year of mergers, as streaming giants will leap to produce better content for their viewers. Here’s what we know. There are talks that if this merger occurs, Disney+ and Netflix will go into submission.

The official Paramount+ streaming platform logo.
Credit: Edited by Inside The Magic

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Warner Bros Discovery Could Join Forces With Paramount in 2024

According to a recent exclusive report from Variety, Warner Bros. Discovery’s Chief Executive Officer, David Zaslav, reportedly engaged in discussions concerning a potential merger during a lunch meeting held on Tuesday in New York with Paramount Global’s CEO, Bob Bakish. Additionally, Zaslav has been in conversation with Shari Redstone, who holds a controlling stake in Paramount Global through National Amusements Inc., exploring the prospect of a collaborative venture between the two companies.

Details regarding the potential merger’s terms remain undisclosed, and the current status of the discussions is characterized as being at a very preliminary stage. Both Warner Bros. Discovery and Paramount Global have engaged the services of financial advisors for these deliberations. It should be noted that Paramount owns the rights to CBS News, Star Trek, Comedy Central, Paramount Plus, and others while Warner Bros owns Warner Bros Discovery, CNN Worldwide, Cartoon Network, the Food Network, TNT Sports, Discovery Inc, Warner Bros Pictures, Warner Media, and more.

As of the end of the third quarter, Paramount Global’s reported long-term debt amounted to $15.6 billion, notably less than the debt load of Warner Bros. Discovery, which was reported at $43.5 billion. However, in terms of market value, Warner Bros. Discovery holds a more prominent position, boasting a market capitalization of $28.4 billion as of the closing of trading on December 20, in contrast to Paramount Global’s $10.3 billion.

Bugs Bunny dressed as a king with the Warner Bros logo on his sceptre
Credit: Warner Bros Discovery, edited by Inside the Magic

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Could Disney Submit and Merge in 2024?

A separate article by Axios mentions how this combination could create a “news and entertainment behemoth that would likely trigger further industry consolidation. According to Axios, Warner Bros., combined with Paramount, could complement one another. One potential outcome of the merger could involve integrating each company’s primary streaming services, namely Paramount+ and Max. Such a collaboration would enhance their competitive standing against industry giants like Netflix and Disney+.

News of this merger was released just moments after CNBC’s annual prediction report came out, hinting that, once again, this report’s predictions could be correct according to the data collected by their executives. An executive for CNBC mentioned how, in 2024, there is speculation that companies will take a more strategic approach to bundle, with predictions suggesting that Disney may consider bundling its trio of streaming services (Disney+, Hulu, and ESPN+) alongside Max and Netflix.

This potential collaboration aims to provide consumers with a discounted package, offering a comprehensive selection of streaming services that could rival traditional cable TV offerings.

Classic Walt Disney Studios logo with castle
Credit: Disney

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Inside The Magic contacted Paramount regarding the rumors of their merger with Warner Bros. An executive told Inside The Magic there was no comment at this time.

If this merger succeeds, Disney+ could submit and bundle its services with these other streaming platforms, creating a giant that has not been seen since cable television.

What are your thoughts on this possible Paramount and Warner Bros. merger? Do you think Disney will submit and cave into a massive streaming services merger in 2024?

in Entertainment, Movies & TV

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