Paramount Global is currently engaged in discussions with other media companies regarding the potential merger of its streaming platform with another company, as reported by CNBC on Monday, July 1.
Paramount Seeks Merge With Streaming Service With Partner
Media companies are now bundling their streaming services and offering discounted rates to attract customers who are cautious about subscribing to multiple individual services, due to concerns about market saturation.
Paramount Global leadership is currently engaged in confidential discussions with executives from various media and tech companies. The purpose of these discussions is to explore the possibility of merging Paramount+ with another streaming platform and potentially establishing a co-ownership arrangement.
These discussions are being conducted in a proactive manner to assess the feasibility and mutual benefits of such a structure.
According to sources, Warner Bros. Discovery is among the companies that have shown interest in reaching a deal.
Warner Bros. Discovery engaged in initial discussions regarding a potential merger with Paramount Global earlier this year, but the talks did not progress further.
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Streaming Platforms to Compete With Netflix
According to sources, there is speculation that Comcast's Peacock, Paramount+, Max, and Walt Disney may join forces and combine their programming into a single application. This move is seen as a way to simplify things for viewers and better compete with streaming giant Netflix.
The report mentioned that the potential joint venture between Paramount and Warner has not been extensively discussed, indicating that ownership would probably not be evenly divided due to the current state of their streaming assets and finances.
Paramount's streaming service boasts over 71 million subscribers, a significant difference compared to Netflix's massive 269.60 million and Warner's impressive 99.6 million.
In a recent report, it was stated that Paramount's co-CEO has revealed the company's new strategy to revamp its streaming business, cut expenses, and sell off certain assets in order to address its debt.
This announcement came shortly after controlling shareholder Shari Redstone decided to terminate negotiations with Skydance Media for Paramount Global, Reuters reported.
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