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Paramount and Warner Bros. Discovery Merger

But wait. How big is too big?

Though a Paramount acquisition is all the rage, the ink is barely dry on Warner Bros. Discovery’s 2022 merger, which combined WarnerMedia—including Warner Bros., HBO, TNT, TBS, CNN, Cartoon Network and then-streamer HBO Max—with Discovery’s portfolio—Discovery, HGTV, TLC, ID, Food Network, OWN, Magnolia Network and Discovery+.

So is there a ceiling on how many assets WBD could take on? According to experts, it’s go big or go home.

“The streaming wars is ultimately a fight for scale. Bigger, in this case, is better,” said Mike Proulx, vp and research director at Forrester. “With fewer, bigger players in the market, users get more content with price efficiencies, and advertisers get mass audience scale with reach.”

So, is another streaming service on the way? Paramount+ With Showtime to the Max?

Following news of the merger, social media networks were flooded with jokes that consumers could soon get a Frankenstein amalgamation of streaming services showcasing some combination of Paramount+, Showtime and Max.

It’s not out of the realm of possibility.

“I would absolutely put my money on a relatively swift merger of streaming services (12-18 months post-completion),” Schreurs said. “Most logical move would be to merge into Max, but this could be a key part of the non-financial negotiations. WBD being two to three times the size of Paramount does not necessarily mean WBD will eat up everything.”

But just because there’s a potential major streaming rebrand following a merger, doesn’t mean the consolidation will slow down.

“In a way, streaming is headed toward a Big Three moment akin to the networks of early TV,” Proulx said. “The fragmentation that ensued is coalescing once again.”

What about other assets?

A potential merger would have a huge impact on the industry’s news services, with Paramount holding CBS News and WBD continually tweaking the formula at CNN. Plus, each company has various sports assets, including WBD’s TNT being an NBA juggernaut and CBS holding rights to March Madness.

“The potential merger of CBS News with CNN could create a news broadcasting powerhouse,” Marlow said. “Similarly, combining CBS Sports with WBD’s sports broadcasting assets could lead to a more comprehensive sports programming lineup.”

Meanwhile, what happens to other assets also remains to be seen.

“What will happen to Miramax? Paramount owns 49% and beIN Media Group owns 51%,” Schreurs said. “Miramax is one of Paramount’s most interesting content assets, but I would imagine a merged WBD/Paramount would pursue full ownership in case they manage to obtain regulatory approval.”

Finally… is this a good thing?

Jeff Goldblum’s Dr. Ian Malcolm in Jurassic Park put it best: “Your scientists were so preoccupied with whether or not they could, they didn’t stop to think if they should.”

Of course, Goldblum was referring to man-eating dinosaurs at the time, but the world of corporate synergy is apparently not dissimilar.

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