New York

Warner Bros. Discovery CEO David Zaslav met with Paramount Global CEO Bob Bakish in New York City to discuss a possible merger, the source reported.

The combination would create a news and entertainment behemoth that would likely trigger further industry consolidation. Zaslav also has spoken to Shari Redstone, who owns Paramount’s parent company, about a deal, source reported.

WBD’s market value was around $29 billion as of Wednesday, while Paramount’s was just over $10 billion, so any merger would not be of equals. The meeting between Zaslav and Bakish, which sources say lasted several hours, took place at Paramount’s headquarters in Times Square.

The duo discussed ways their companies could complement one another. For example, each company’s main streaming service – Paramount+ and Max – could merge to better rival Netflix

It’s unclear whether WBD would buy Paramount Global or its parent company, National Amusements Inc. (NAI), but a source familiar with the situation says that both options are on the table. WBD is said to have hired bankers to explore the deal, source reported.

The deal could drive substantial synergies. WBD could use its international distribution footprint to boost Paramount’s franchises, while Paramount’s children’s programming assets could be essential to WBD’s long-term streaming ambitions.

CBS News could be combined with CNN to create a global news powerhouse. CBS’ crime dramas, such as NCIS and Criminal Minds, could be combined with Investigation Discovery and TruTV, source reported. CBS Sports’ footprint could be combined with WBD’s. For example, CBS and WBD’s Turner Sports currently share TV rights for March Madness.