In December, we reported that the 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 mean merging the Max and Paramount Plus services into one super streamer.
It's an interesting perspective, but it seems that it won't happen now: the talks have been discontinued. Warner Bros. Discovery's shares fell 10% last week after missing revenue targets and are approaching a 52-week low, while Paramount Global is also nearing a 51-week low as it awaits profit reports.
But Paramount still has potential buyers. Media mogul Byron Allen has already offered $14 billion for the company, although he has a history of trading without a haystack purchase. Although Comcast is not interested in directly buying the company, it is still working with bankers to explore a potential commercial partnership with Paramount Global. This could mean merging Comcast's Peacock service with Paramount Plus. Another potential partner or buyer, Skydance Media, is apparently still interested, although the details of the talks are still unknown.
Paramount is one of the most well-known entertainment brands in the US, including Hollywood studios, CBS, and many other well-known brands. But as an outdated business that still heavily relies on network television, cable TV, and theaters, it has struggled in the era of streaming and has been particularly hard hit by the COVID pandemic, wrong decisions, and insufficient investments in the 2010s and in need of significant investments. According to analysts, a deal between Skydance and Paramount is the most likely scenario - the process of negotiating terms is ongoing.
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