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Under a Paramount-WBD merger, two struggling media giants would unite

Ars Technica3 min read

Key Takeaways

  • Both Paramount and WBD have experienced significant financial losses, with Paramount's full-year 2024 net earnings at -$6.19 billion and WBD at -$11.31 billion.

  • The merger could lead to HBO Max being integrated into Paramount+, potentially increasing the platform's value and subscriber base.

  • Despite declining viewership, both companies' cable segments remain profitable, with Paramount's TV/media business reporting $1.1 billion in adjusted OIBDA in Q4 2025.

  • Regulatory approval is anticipated, but the merger faces scrutiny from various stakeholders, including potential state lawsuits and European regulations.

Paramount is expected to acquire Warner Bros. Discovery (WBD) following Netflix's exit from the bidding. This merger aims to address the financial struggles both companies face, with Paramount betting on improved profitability through enhanced streaming and cable offerings. Paramount's streaming services, including Paramount+, have shown growth, yet remain unprofitable overall. The merger could consolidate HBO Max into Paramount+, creating a larger and potentially more valuable streaming service. While both companies' cable operations are declining, they still generate profits, with Paramount's cable business reporting $1.1 billion in adjusted OIBDA in Q4 2025. Regulatory hurdles are anticipated as the merger progresses.

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Under a Paramount-WBD merger, two struggling media giants would unite | Trace