Warner Bros. Discovery and Paramount discuss potential merger in 2024

<img width="250" height="167" src="https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-Warner-Bros.-Discovery-and-Paramount-discuss-potential-merger-in-2024-5727298884-iStock-458236039-250×167.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-Warner-Bros.-Discovery-and-Paramount-discuss-potential-merger-in-2024-5727298884-iStock-458236039-250×167.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-Warner-Bros.-Discovery-and-Paramount-discuss-potential-merger-in-2024-5727298884-iStock-458236039-700×467.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-Warner-Bros.-Discovery-and-Paramount-discuss-potential-merger-in-2024-5727298884-iStock-458236039-768×512.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-Warner-Bros.-Discovery-and-Paramount-discuss-potential-merger-in-2024-5727298884-iStock-458236039-120×80.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-Warner-Bros.-Discovery-and-Paramount-discuss-potential-merger-in-2024-5727298884-iStock-458236039-245×163.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-Warner-Bros.-Discovery-and-Paramount-discuss-potential-merger-in-2024-5727298884-iStock-458236039-500×333.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-Warner-Bros.-Discovery-and-Paramount-discuss-potential-merger-in-2024-5727298884-iStock-458236039.jpg 1254w" sizes="(max-width: 250px) 100vw, 250px" /><p>In April 2022, WarnerMedia completed its $43bn merger with Discovery, securing better tax advantages and creative licensing. As a result, Warner Bros CEO David Zaslav will face heavy tax implications if he chooses to engage in any merger before April 2024 (two years after the original merger).</p>
<p>While a potential merger between the two studios could once again upend the media industry, the talks aren’t a complete surprise. Zaslav, who executed <a href="https://www.leaprate.com/news/lmax-group-enhances-institutional-fx-services-with-curex-acquisition/" target="_blank" rel="noopener">acquisitions</a> at Discovery, has talked in recent months about going shopping for additional assets to boost Warner Bros. Discovery’s content offerings.</p>
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<p>After the talks were announced, Warner Bros. Discovery (WBD) stock plummeted to end the day at 5.7%. The stock landed another blow, falling a further 1.4% in after-hours trading, and Paramount’s stock fell 1% in after-hours trading. Investor sentiment suggests that the merging of old-time media giants will continue throughout the coming decade as companies try to stay afloat in an increasingly online media world.</p>
<p>Rich Greenfield, co-founder and analyst at LightShed Partners, told CNN:</p>
<blockquote><p>I think it speaks to the panic. The industry is in for a very challenging future. They’re going to try to get bigger to compete in streaming.</p></blockquote>
<p>Both Paramount and Warner Bros. Discovery are in debt; however, the latter has impressed Wall Street by cutting its debt down to $45.1bn from $49.3bn in Q1. WBD’s stock is up 23% this year, with Disney up 5% and Paramount down 8%.</p>
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