Shares of Warner Bros. Discovery Inc. and Paramount Global Inc. experienced an uptick following reports indicating a halt in merger discussions between the two media giants.
According to CNBC, Warner has ceased talks of acquiring Paramount after several months of deliberation. This development comes after initial reports of merger discussions surfaced in December, initially reported by Axios.
On Tuesday, Warner’s shares saw an increase of nearly 2%, while Paramount’s stock rose by 1.4%.
Warner recently finalized a complex merger with Discovery last year. Analysts had expressed doubts about the feasibility of another merger, especially one involving the consolidation of TV networks like CBS and CNN and streaming platforms such as Max and Paramount+ due to potential regulatory hurdles.
Meanwhile, Skydance Media, the TV and film studio owned by David Ellison, has reportedly shown interest in acquiring some or all of Paramount and its parent company, National Amusements, currently under the control of Shari Redstone. CNBC noted that Skydance is still evaluating Paramount and its assets for a potential deal.
Contrary to rumors, Comcast Corp., the owner of Peacock, has indicated disinterest in acquiring any Paramount assets. However, the company remains open to exploring a streaming joint venture, as reported by the Wall Street Journal last week.
According to CNBC, Paramount has set up a special committee along with its own financial adviser to consider potential bids for certain assets or the entirety of the company.
Following Warner Bros. Discovery’s announcement of a wider-than-expected fourth-quarter loss, its shares experienced a 10% decline on Friday. The stock has seen a 14% decrease year-to-date and has fallen by 44% over the past 12 months.
Paramount is slated to report its earnings on Wednesday. Its stock has declined by 18% since the beginning of the year and has experienced a 47% decrease over the past year.
According to CNBC, Paramount has set up a special committee along with its own financial adviser to consider potential bids for certain assets or the entirety of the company.
Following Warner Bros. Discovery’s announcement of a wider-than-expected fourth-quarter loss, its shares experienced a 10% decline on Friday. The stock has seen a 14% decrease year-to-date and has fallen by 44% over the past 12 months.
Paramount is slated to report its earnings on Wednesday. Its stock has declined by 18% since the beginning of the year and has experienced a 47% decrease over the past year.
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