Paramount entertains Warner’s merger talk

The chief executives of Paramount Global and Warner Bros. Discovery have met to discuss a potential merger, in what would be a major step in the further consolidation of the media and entertainment industry.

Bob Bakish and David Zaslav, the respective heads of Paramount and Warner Bros. Discovery, connected in New York City this week to talk about a potential combination of the two entertainment giants, according to a person who was briefed on the matter but was not authorized to comment publicly.

Zaslav, who oversaw the marriage of Warner Bros. and Discovery last year, also has conversed with Shari Redstone — president of National Amusements, which holds the majority of Paramount voting stock — about the possible consolidation, according to Axios.

The media industry has been rife with speculation about the future of Paramount, given Redstone’s recent willingness to consider selling a controlling stake in National Amusements.

The talks have been described as preliminary and may not result in a deal. A representative for Paramount declined to comment. A representative for Warner Bros. Discovery did not immediately respond Wednesday to The Times’ request for comment.

Both companies’ stock prices have been under stress because of their substantial debt loads, combined with Wall Street souring on legacy media’s investments in streaming services.

A union between Warner Bros. Discovery and Paramount Global would be an opportunity for the companies to combine units and expand their program offerings while consolidating costs.