Paramount Global (NASDAQ:PARA) shares gained ground Tuesday, amid talks it’s holding with other entertainment companies about merging its Paramount+ streaming service with an existing platform. If it reaches a deal, it may kick off a new wave of streaming partnerships that could put the entire media industry on firmer footing.
Paramount Global leadership is having active discussions with other media and tech company executives to determine if a structure makes sense for both parties where Paramount+ can be merged with another streaming entity and potentially co-owned, according to people familiar with the matter, who asked not to be named because the discussions are private.
One of the companies that has expressed a desire to reach a deal is Warner Bros. Discovery, according to people familiar with the matter. Combining Max and Paramount+ could strengthen both services by allowing them to better compete with Netflix (NASDAQ:NFLX) and Disney’s suite of platforms (Disney+, Hulu and ESPN) for eyeballs and future content.
Warner Bros. Discovery held preliminary merger talks for a deal for all of Paramount Global earlier this year, but talks didn’t escalate.
Paramount Global is also considering partnering with a technology platform, the company’s co-CEO Chris McCarthy said at an employee town hall on June 25.
“What they don’t have is our scale of content, and together we will make for a very powerful combination to drive more minutes and greater profits,” McCarthy said of a potential tech partner at the town hall.
PARA shares prospered 26 cents, or 2.5%, to $10.40.
Tech Insider
