In December, we reported that streaming TV services Max and Paramount Plus were seriously discussing joining forces. The companies were considering a merger that would allow them to better compete with Disney Plus/Hulu and Netflix. This could have meant combining Max and Paramount Plus services into one super streamer.
It’s an interesting prospect, but it doesn’t look like it’s going to happen now: negotiations have been suspended. Shares of Warner Bros. Discovery fell by 10% last week after missing revenue targets and are approaching a 52-week low, while Paramount Global is also approaching a 51-week low as it awaits its earnings report.
But Paramount still has potential buyers. Media mogul Byron Allen has already offered $14 billion for the company, although he has a history of bidding without a stacked buyout. Although Comcast is not interested in buying the company outright, it is still working with bankers to explore a potential commercial partnership with Paramount Global. This could mean combining Comcast’s Peacock service with Paramount Plus. Another potential partner or buyer, Skydance Media, is apparently still interested, although details of the negotiations are not yet known.
Paramount — is one of the most famous entertainment brands in the US, which includes Hollywood studios, CBS and many other well-known brands. But as a legacy business still heavily reliant on network TV, cable TV and movie theaters, it has struggled in the streaming era and has been hit particularly hard by the COVID pandemic, poor decisions and underinvestment in the 2010s and needs significant investment. According to analysts, a deal between Skydance and Paramount is most likely — the process of agreeing on terms is ongoing.