A successful Paramount-WBD merger would be the largest streaming merger ever and would lead to further consolidation in the industry.
“What started as a fragmented but flexible streaming ecosystem is rapidly moving toward re-bundling – fewer, larger super-platforms offering broader catalogs at higher price points,” Mathur said.
Paramount holds cable
Paramount’s WBD bid is unique in its aggressive pursuit of cable channels, which are struggling with viewership and advertising revenue. Under the WBD merger, Paramount will add networks such as HGTV, Cartoon Network, TLC and CNN to its linear TV lineup, which currently includes Comedy Central, Nickelodeon and CBS.
Although both Paramount and WBD’s cable businesses are in decline, they are both profitable. Paramount’s TV/media business, which includes its cable channels and production studios, reported $1.1 billion in adjusted OIBDA in Q4 2025. WBD’s cable business posted adjusted EBITDA of $1.41 billion in the quarter.
Ultimately, the Paramount-WBD merger would jeopardize various viewpoints. Under Ellison’s ownership, CBS News has adjusted its approach with new editor-in-chief Bari Weiss. There have also been concerns about CBS censoring under Ellison’s leadership, including from Stephen Colbert, who said this month that CBS prohibited him from interviewing Texas Democratic Senate candidate James Tallarico; CBS denied Colbert’s claim. Additionally, Paramount could have a lasting impact on CNN, including costs, layoffs, and coverage.
more to come
Regulatory scrutiny will be at the center of the merger of Paramount and WBD in the coming months. Federal approval is likely, but the merger would also face European regulation and possible state lawsuits. The theater industry is also lobbying against Paramount’s WBD merger.
Should the Paramount-WBD merger ultimately get the greenlight, the two declining businesses will be challenged to create a profitable business. Even with regulatory approval, Paramount-Skydance-Warner-Brothers-Discovery faces an uphill climb.
Although the bidding war may be resolved, the battle for WBD is just beginning.
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