Warner Bros. Discovery has shown early interest in exploring a partnership with Paramount Global to combine WBD’s Max and Paramount+, according to sources. This potential collaboration comes after Paramount Global, led by its controlling shareholder Shari Redstone, revised its strategic plan to enhance the profitability of Paramount+ and explore cost-cutting measures.
The Collaboration
A source confirmed WBD’s preliminary interest in evaluating a streaming joint venture with Paramount Global, as first reported by CNBC. Given Paramount Global’s openness about seeking a partner, it’s unsurprising that Warner Bros. Discovery would explore this opportunity. Currently, both companies are considering what a partnership might look like.
Strategic Plans
At Paramount Global’s recent town hall meeting, Chris McCarthy, one of the three co-CEOs, discussed two potential streaming partnerships. The first option involves a deep, long-term relationship with a leading technology platform to combine their content scale with Paramount’s. The second option is joining forces with other SVOD players to create a vast library of TV, film, and sports content, attracting millions of viewers.
McCarthy emphasized the significant interest in partnering with Paramount Global due to their strong content and industry track record. Meanwhile, Warner Bros. Discovery CEO David Zaslav highlighted the company’s opportunistic approach to M&A deals, anticipating consolidation in the streaming industry.
Previous Discussions
Earlier this year, Paramount discussed merging Paramount+ with NBCUniversal’s Peacock, but no agreement was reached. Similarly, talks between Zaslav and former Paramount CEO Bob Bakish about merging WBD and Paramount Global did not progress.
Market Impact
Both Paramount+ and Max recently announced price hikes to demonstrate their potential as profitable growth engines to Wall Street. As the streaming landscape evolves, a partnership between Warner Bros. Discovery and Paramount+ could significantly impact the industry, potentially creating one of the dominant global streaming platforms Zaslav envisions.
