Paramount won't be owned by Microsoft, but a significant merger may be on the horizon

Recently, rumors surfaced about a possible acquisition of Paramount by Microsoft in an operation that seemed quite unusual. It's a fact that the Xbox company won't acquire the film and TV entertainment company, where Halo is actually streamed. However, this information has sparked a movement that seems close to materializing.

Warner Bros. Discovery could acquire Paramount

According to information from Stephen Totilo, a journalist at Axios, the entertainment world could be shaken by a new merger. It would involve the union of Warner Bros. Discovery and Paramount Global. Sources indicate that David Zaslav, CEO of Warner Bros. Discovery, met with Bob Bakish, CEO of Paramount Global, to discuss the details of a merger between the two companies, with the acquisition being carried out by the former.

Me: Don't jump to conclusions
Also me:#HaloTheSeries pic.twitter.com/4uHsmZWXxS

— Halo on Paramount+ (@HaloTheSeries) November 7, 2023

Why is Warner Bros. Discovery interested in Paramount?

In this regard, it is noted that Warner Bros. Discovery's top priority would be to merge with Paramount to directly compete against Netflix and Disney+, believing that the union would be beneficial for the parties involved in improving their market position. For example, a service like HBO Max combined with Paramount+ would be a compelling option to gain ground against competitors.

On the other hand, it is stated that Warner Bros. Discovery's intention is not only to strengthen its film and TV entertainment division with the acquisition of Paramount Global but also to boost its news and sports divisions and businesses. Remember that Disney+ owns ESPN.

Additionally, sources mentioned that the meeting between Warner Bros. Discovery and Paramount has prompted movements in banking and legal analysis and advisory to ensure that the operation proceeds smoothly, giving rise to a more powerful company.

Finally, it is worth remembering that since the inception of Warner Bros. Discovery, the restructuring period has been marked by financial losses, project cancellations, and layoffs. Furthermore, it seems that the consolidation phase in this industry sector has begun, as Disney already owns all the content of Hulu, and in the event that this merger is real, Warner Bros. Discovery would be the owner of Paramount, with the most powerful entities taking control of medium and small companies.

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