How is this for late-breaking, end-of-the-year news?
It seems all the A-list talent, industry analysts and agencies in Hollywood are buzzing over the news that Warner Bros. and Paramount are looking to merge.
Axios was first to report that Warner Bros. Discover CEO David Zaslav met with President of Paramount Global Bob Bakish on Tuesday to discuss a potential merger.
Axios' report has been corroborated by Variety, The Hollywood Reporter and Deadline Hollywood.
Zaslav has also reportedly approached Shari Redstone, the non-executive chairwoman of Paramount Global. The Redstone family are majority shareholders of CBS, Comedy Central, BET, Showtime Networks, Nickelodeon, MTV and Paramount.
On paper, the merger appears to work for both parties as Warner Bros. Discovery is carrying a ton of debt after Discovery acquired Warner Media from AT&T in Spring 2022. In contrast, Paramount has a much better debt-to-capital ratio but doesn't have the market capitalization that Warner Bros. Discovery possesses.
Circling back to Redstone, it seems the family is looking to sell its controlling shares of National Amusement stocks, which gives the family control of the mass media holding company with ties to CBS, Comedy Central, BET, Showtime Networks, Nickelodeon, MTV and Paramount
At this stage, it's unclear if Zaslav is looking to make a deal with Restone if talks with Bakish fall through.
Industry analysts are concerned that the merger would create a new entertainment powerhouse and lower the overall number of films released each year.
Paramount is the home of several high-profile franchises including Star Trek, Mission Impossible, Top Gun and Transformers.
They also possess several high-profile animation film and television series through Nickelodeon.
Warner Bros. is of course, home to DC Studios, Harry Potter, The Lord of the Rings, Mad Max and more.
Additionally, Warner Bros. Discovery is legally prevented from entering into any more acquisitions or mergers for two years, following the Warner Bros. Media and Discovery merger. However, that two-year period expires this April.
Of particular interest to the comic book movie fandom is how a potential merger between the two studios could impact the announced DC Studios film and television slate. Warner Bros. is said to be strapped for cash and at this early stage, it's unclear how a merger could affect their purse strings.
There's also the issue of the two studios' streaming apps, Max and Paramount Plus. A merger and combination of the two would give the new company an exceptionally robust library.
News of the potential merger broke after Wall Street closed for the day but industry analysts are eagerly awaiting for the stock market to open tomorrow to gauge how Wall Street reacts.
Do you think Warner Bros. merging with Paramount would be good for the industry? Let us know in the comment section below.