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Warner Bros. and Paramount Global Media Merger Talks Halted
February 28, 2024
Warner Bros. Discovery has decided to halt discussions regarding the potential acquisition of Paramount Global, bringing an end to several months of speculation, according to sources familiar with the matter.
Skydance Media, led by David Ellison, continues to conduct due diligence on a potential transaction, as disclosed by two individuals who preferred to remain anonymous due to the confidential nature of the negotiations.
Paramount Global has established a special committee, accompanied by its own financial advisor, tasked with evaluating bids for either the entire company or specific assets. Last month, media mogul Byron Allen made a $14 billion offer for the company, although his history suggests a tendency to bid without ultimately sealing the deal.
While Comcast, the owner of CNBC parent NBCUniversal, has shown no interest in purchasing Paramount Global assets, it is exploring potential commercial partnerships. Discussions may involve integrating streaming services like Peacock and Paramount+, though Paramount Global’s stance remains uncertain.
Representatives for Comcast, Paramount Global, Skydance Media, and Warner Bros. Discovery have all declined to comment on the matter after being contacted by several news sources.
Initial conversations between Warner Bros. Discovery CEO David Zaslav and Paramount Global CEO Bob Bakish took place in December, progressing to more serious merger discussions in January, only to cool off significantly this month.
Following earnings and revenue misses, Warner Bros. Discovery shares witnessed a 10% decline, marking a staggering 47% drop over the past year and nearing a 52-week low. Paramount Global’s stock is also approaching its yearly low ahead of its upcoming earnings announcement.
The decision to halt merger talks has left many in the industry speculating on the future direction of both companies and the broader media landscape. This comes as a surprise as the merger would have made waves across the entertainment industry in various ways.
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