Warner Bros. Discovery Chairman and CEO David Zaslav speaks during the New York Times' annual DealBook Summit on November 29, 2023 in New York City.
Miguel M. Santiago | fake images
Warner Bros. Discovery has put “pencils down” on a possible acquisition of global paramounthalting talks after several months of putting off the merger of the media companies, according to people familiar with the matter.
Skydance Media, the film and television studio run by David Ellison, is still conducting due diligence on a potential transaction, said two of the people, who asked to speak anonymously because talks about the deal are private.
Paramount Global has created a special committee, which has hired its own financial advisor, to examine possible bids for the entire company or certain assets. Media mogul Byron Allen offered $14 billion for the company last month, although he has a history of bidding and not buying large media assets.
Comcast, owner of CNBC parent NBCUniversal, is not interested in acquiring Paramount Global's assets, one of the people said. Comcast has been working with in-house bankers to explore a potential business partnership with global paramountaccording to people familiar with the matter.
That could include bundling or merging streaming services Peacock and Paramount+, as The Wall Street Journal previously reported, or a different deal. Still, it's unclear if Paramount Global would have interest in this as it explores sale scenarios.
Spokespeople for Comcast, Paramount Global, Skydance Media and Warner Bros. Discovery declined to comment.
Warner Bros. Discovery CEO David Zaslav had a preliminary conversation with Paramount Global CEO Bob Bakish, CNBC reported in December. The companies entered into more serious merger talks in January, but talks have cooled this month.
Shares of Warner Bros. Discovery fell 10% on Friday after the company missed analyst targets for earnings and revenue. The stock has fallen 47% in the past year and is near a 52-week low.
Paramount Global is also trading near a 52-week low as it prepares to announce earnings on Wednesday.
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