In the media industry, a potential merger is being discussed that could significantly reshape the sports rights landscape. This potential merger would involve Warner Bros. Discovery (WBD) and Paramount Global (PARA), combining their sports rights assets, including CBS Sports and Turner/WBD sports. The deal could have major implications for soccer media rights in the U.S. and affect the NHL regional media rights as all rights are set to revert to the NHL at the end of the season. The merger would also bring together streaming services paramountplus and StreamOnMax, news outlets CBS News and CNN, true crime shows from both networks, leverage WBD's international distribution to boost Paramount franchises, and unite children's networks Nickelodeon and Cartoon Network. While Axios reported early talks and CEOs have met in NYC to explore options, no formal discussions have been confirmed. Paramount Global has a market cap of $10B and $15B of debt, making it a less attractive asset despite the potential synergies. David Zaslav of WBD, with a market cap of $28B, has been known for deal-making, but sources close to him suggest he is not currently in 'deal mode' and that discussions with Bob Bakish of Paramount were very exploratory. Analysts from LightShed Partners have expressed skepticism about the deal's approval due to regulatory scrutiny, and the potential impact of bankruptcy proceedings on the NHL's regional media rights is also a factor to consider.
Slim Odds of Warner-Paramount Deal Approval: LightShed's @RichLightShed $PARA $WBD I asked Rich to put to one side whether the deal should happen or if it makes sense and ask would it ever pass regulatory scrutiny to happen. https://t.co/kmxZZ41Lkd
There are a whole host of reasons why a deal between Warner Bros. and Paramount would make sense—but there are no guarantees a deal will happen. https://t.co/0chSX18KnO
The #FlaPanthers are one of 11 teams on Bally Sports whose TV rights will go back to the NHL at the end of this season. They could remain on a new Bally Sports - perhaps named something different - following bankruptcy proceedings. Or not. THE STORY: https://t.co/CNUcdfxYWG https://t.co/4UwZqkgFwD
SCCOP: People close to David Zaslav tell @FoxBusiness he is NOT in deal mode at the moment, and that his talks with Bob Bakish for a @wbd - @paramountco deal were very exploratory. @RichLightShed says separately talk of a near-term tie-up is "bullshit," because $PARA's…
🎬 Warner Bros. & Paramount potential merger? 🗞️ Axios reported early talks. 🏢 CEOs met in NYC, exploring options. 📊 Market cap: $WBD $28B, $PARA $10B. 🔎 No formal discussions confirmed yet. https://t.co/4TdrCv287k
It’s unclear that any company other than WBD would even entertain buying Paramount Global. Paramount Global has $15b of debt and isn’t exactly a prized asset in demand, even if the asset fit works. https://t.co/SXsF6p3HZE
I’ve been watched @davidzaslaav for years do deals; what’s weird about the @wbd - @paramountco leak is that his deals rarely leak in preliminary stages when he’s serious. That said I know he met w the people there and kicking tires on Shari’s stake, worth around $2B
Huge news impacting the NHL regional media rights landscape. All rights reverting to NHL at end of the season. https://t.co/VVWj9gSgA5
WBD will merge with somebody, at some point. It makes sense. Like a NBC-WBD tie up was #1 in this media exec “2024 predictions” article: https://t.co/MkhY9UQpyU But did not expect that headline today.
The $PARA-$WBD deal "absolutely makes sense to me," Puck News' @WilliamCohan says. However, "I don't think it's necessarily [David] Zaslav's first choice. I mean I think Zaslav's first choice would be to do some sort of deal with Brian Roberts for NBCU." https://t.co/8YsM9fkHai
Worth noting that this WBD/Paramount combo isn’t coming out of the blue. Both David Zaslav and John Malone alluded to it last month … https://t.co/cwTDJZWHad
Synergies w a possible deal: 📺STREAMING: @paramountplus & @StreamOnMax 🗞️NEWS: @CBSNews + @CNN 🚔TRUE CRIME: NCIS, Criminal Minds, + @DiscoveryID & @truTV 🌍DISTRIBUTION: WBD international distribution to boost Paramount franchises 👧KIDS: @Nickelodeon + @cartoonnetwork https://t.co/dKQiQTgcpz
This has some pretty major implications for soccer media rights in the U.S. if a merger goes through. https://t.co/2z7UYFMcVf
Potentially massive media move here. The streaming consolidation is coming. Would also be a potential merger of CBS Sports and Turner/WBD sports. https://t.co/y1H37yXv2s
A significant (potential) combination in the sports rights world: https://t.co/42hcLzMsyc