What Hollywood's next potential merger means for streaming

"The disclosure followed public overtures from Paramount, which reportedly was willing to pay as much as $24 per share, or around $60 billion total, for the publicly traded media company. WarnerBros. Discovery rejected that offer as too low, and hopes to drum up additional interest by publicly putting itself up for sale. Any potential deal, regardless of the ultimate identity of the winning bidder, will almost inevitably reshape the streaming landscape, which in turn could have major consequences for consumers."

"The proposed sale is also a testament to how much the media landscape has changed since the pandemic, when consumers flocked in droves to streaming, abandoning traditional pay TV in the process. 83% of consumers now watch streaming TV, according to a recent Pew survey. Within just a few years, streaming has become ubiquitous - and at the same time a victim of its own success, with little room to grow any further."

WarnerBros. Discovery confirmed it is open to a sale and has received multiple offers from major media and tech companies. Paramount reportedly offered $24 per share, roughly $60 billion, which WarnerBros. Discovery rejected as too low. Potential acquirers reportedly include Paramount Skydance, Netflix, Comcast, Amazon, and Apple. The media landscape has shifted toward streaming since the pandemic, with 83% of consumers now watching streaming TV. Streaming growth is slowing and the market is reaching saturation, prompting large-scale mergers as a growth strategy. Any sale of WarnerBros. Discovery would reshape streaming competition and affect consumer choice and pricing.

Read at Fast Company