NEW YORK, September 25 — A merger of Paramount Global and Warner Bros. Discovery would create a streaming company carrying more than $77 billion in debt, Wall Street analysts said. That figure matters because it could limit what the combined company spends on new content as it competes with Netflix and Disney. The deal, if completed, would unite two of Hollywood’s oldest studios.
Paramount Pictures was founded in 1912. Warner Bros. followed in 1923. Their streaming platforms, Paramount+ and Max, would sit under one roof, alongside television networks including CBS, CNN, TNT, TBS and HGTV.
A Vast Library, and a Heavy Load
The merged entity would control a film and television library spanning franchises such as Star Wars, Star Trek, DC Comics, Harry Potter and Game of Thrones. Star Wars comes through Paramount’s ownership of Lucasfilm until 2012. The debt load, above $77 billion, has raised concerns about the company’s ability to fund new content and keep pace with larger rivals.
Based on 2023 figures, the company would have annual revenues above $60 billion and a combined workforce of more than 40,000 employees. Some analysts have said consumers could see higher streaming prices and fewer choices.
Regulators in the Room
The US Department of Justice and the Federal Trade Commission must approve the transaction. Both agencies have previously blocked or imposed conditions on large media mergers. The failed AT&T-Time Warner deal in 2017 was later approved in 2018 after a court battle. Disney’s acquisition of 21st Century Fox closed in 2019. The deal is expected to face scrutiny over antitrust concerns given the combined company’s market share in streaming and television production.
Both companies have struggled in the streaming era. Warner Bros.
Discovery reported a net loss of $3.4 billion in 2022, and Paramount Global reported a net loss of $1.6 billion in 2023. Paramount Global, formerly ViacomCBS, was formed in 2019 through the merger of CBS Corporation and Viacom. Warner Bros.
Discovery was created in 2022 when AT&T spun off WarnerMedia and merged it with Discovery, Inc. If approved, the combined company would be led by current Paramount CEO Bob Bakish and Warner Bros. Discovery CEO David Zaslav, though the leadership structure is yet to be determined.
The transaction is expected to close in 2025, pending regulatory review. The deal’s announcement has already prompted discussions among lawmakers about the need for updated antitrust laws. The story is developing, and further details are expected as regulatory reviews proceed.
