Paramount Pictures and Warner Bros. could end up merging into a single company. The ink has barely dried on the deal that combined Paramount with Skydance Media, but the company is looking to expand by absorbing Warner Bros. and its library of ᴀssets that range from film and TV IP to cable channels and news networks.
The plan to merge WB and Paramount has been in the works for a while, but it seems like it might finally become real. However, it’s worth considering the potential fallout of such a merger and the impact it could have not just on Hollywood jobs but the movie industry as a whole.
Could Paramount Actually Merge With Warner Bros.?
Paramount’s potential acquisition and merger with Warner Bros. would send shockwaves through Hollywood. Paramount and Warner Bros. are both among Hollywood’s oldest insтιтutions. Paramount’s history dates back to 1912, while Warner Bros. was established in 1923. A merger of that magnitude would require approval by the FCC and the Justice Department.
Paramount has already recently gone through this process, as Skydance Media merged with it after a lengthy ordeal that only concluded earlier this year. However, the company is already considering entering a majority cash bid for ownership of Warner Bros. Discovery, which would extend to their full library of movies, shows, comics, games, and more.
The majority cash bid was put forward by Skydance Media founder David Ellison and his father Larry Ellison – and with the latter recently becoming the world’s wealthiest person, it’s unlikely that they could easily be outbid. Such a move would bring all WB IP (such as DC, Harry Potter, Looney Tunes, Terminator, and Dune) under a new banner.
That would include ownership of WBD’s cable networks, which include CNN, TBS, TNT, Food Network, HGTV, and Discovery. It would also give Paramount certain control over Turner Classic Movies, which has already struggled to survive in the current Hollywood climate (but has endured thanks to filmmakers like Steven Spielberg).
While there are issues that would need to be addressed, it’s not unfeasible for the companies to combine. 21st Century Fox was successfully acquired by Disney, which was a similar deal in terms of raw scale. Paramount’s ability to put up a mᴀssive cash payment, thanks to the Ellison family, could ensure the deal goes through.
What Would Happen If Paramount And Warner Bros. Merged?
A combined Warner Bros./Paramount would be a behemoth in Hollywood. The only studio that could likely compete in terms of raw amount of IP and content would be the Walt Disney Company. This wouldn’t erase the impact of major studios and streamers like Universal, Sony, Amazon MGM, Netflix, and Apple TV+, but would give them a harder wall to overcome.
A potential merger would likely lead to a consolidation of their ᴀssets and services, including in the world of streaming. In a world where Paramount and Warner Bros. are part of the same company, Paramount+ and HBO Max would likely be combined into a single app.
A good showcase for the potential results of such a merger would be the Walt Disney Company, which acquired 21st Century Fox in 2019. That deal resulted in the two legacy studios combining, bringing a wealth of IP under the Disney banner. While the company argued it was a profitable decision for everyone involved, financial analyses have been mixed.
Absorbing one of Hollywood’s major studios also raised concerns that Disney could be monopolizing the industry, eliminating potential compeтιтion by simply acquiring those other businesses. The two companies combined their workforces, resulting in several terminations among Disney and Fox departments due to the new redundancies.
Similar concerns revolve around a Paramount/Warner Bros. merger. While they would likely avoid claims of monopolization by directly pointing to Disney’s own wealth of IP, Paramount and Warner Bros. merging would effectively transform the landscape into two powerhouse studios that others would need to overcome.
Paramount has already had between 2000 and 3000 layoffs as a result of the merger with Skydance, and that number would likely only increase with another merger. It would also likely make production a more challenging endeavor for filmmakers seeking to retain some control over their creations, similar to Ryan Coogler’s Sinners deal.
There’s a chance that this merger and the natural reduction in direct compeтιтion it would create between the studios could lead to a smaller number of film productions and releases. Fewer movies being produced means fewer film jobs, which could in turn impact efforts to bring production back to Los Angeles.
Another concern would be the impact on content. CBS (a subsidiary of Paramount) came under scrutiny when it canceled the top-rated The Late Show with Stephen Colbert, with many believing this was meant to help appease the current administration (which Colbert was critical of) to push Skydance’s acquisition of Paramount through the Justice Department and FCC.
It’s possible that similar moves could await Warner Bros. properties if they fall under the Skydance umbrella, especially given the Ellison family’s ties with the Trump administration and the President’s disdain for networks like CNN. However, Paramount’s deal with South Park suggests creatives could retain their ability to be critical of modern politics.
As reported by ᴅᴇᴀᴅline, insiders claim that the merger would lead to “a complete transformation of the motion picture industry landscape.” With the future of Hollywood in flux, Paramount and Warner Bros. merging would be a potential paradigm shift that could further entrench the major studios and reduce compeтιтion in a crowded market.
