Debt-ridden media giant Paramount Global held merger talks with Warner Bros. Discovery, according to multiple reports Wednesday.
Paramount CEO Bob Bakish met with Warner Bros. Discovery boss David Zaslav boss for several hours at Paramount’s New York headquarters in Times Square, according to sources cited by both Axios and CNBC.
The merger talks — described as being in the early stages — follow reports that media mogul Shari Redstone may sell her controlling stake in Paramount-parent National Amusements to Larry Ellison’s production company Skydance and Gerry Cardinale’s private equity firm RedBird Capital.
Zaslav also met with Redstone, according to Axios, though it’s unclear whether he is looking to buy Paramount Global or its parent company.
A separate report from Bloomberg on Wednesday revealed that Redstone is also in talks to sell Paramount’s BET Network to a management-led investor group at a steep discount.
Sources told The Post that Redstone has been “kicking the tires” around town on everything.
A merger of the two goliaths would bring together Paramount’s vast portfolio that includes CBS, MTV, Paramount Pictures and Nickelodeon under the same roof as Warner Bros. Discovery, home to the Warner Bros. movie studio, HBO and CNN.
During the Times Square meeting, Zaslav and Bakish discussed ways their companies could compliment one another, Axios reported.
One example would be to merge their streaming services — Paramount+ and Max — in order to better compete with Netflix.
Axios said Warner Bros. Discovery has hired bankers to look into the matter, noting that the two companies could compliment each other with Warner Bros. Discovery’s strong international footprint bolstering Paramount, and Paramount’s children’s content proving essential to Warner Bros. Discovery’s streaming ambitions.
On the news side, CBS News could be combined with CNN to create a global news powerhouse, but the merger could also face regulatory hurdles.
Neither Paramount nor Warner Bros. Discovery commented.
WBD shares dropped nearly 5% after news of the talks broke, finishing with a market value at around $29 billion. Paramount’s market cap was just over $10 billion after closing down 2% Wednesday.
headquarters Wednesday where the two talked about synergies between their firms. Getty Images for Vanity Fair
Paramount, which is battling declines in traditional TV viewership and advertising as well as a costly expansion into streaming with its Paramount+ service, is facing enormous pressure to find a partner or buyer as its staring down a mountain of debt.
National Amusement reached a deal with creditors to restructure some of its debt earlier this year, and it trimmed down by selling Simon & Schuster for $1.62 billion in August to private equity firm KKR.
The New York Times reported Redstone held talks with Amazon, Apple and Netflix earlier this year.
Her reported talks to sell BET Network for “a little under $2 billion” come after an auction earlier this year failed to score the $3 billion the company was seeking.
The potential buyers include BET Chief Executive Officer Scott Mills and Chinh Chu, a former Blackstone exec who runs New York-based CC Capital Partners, Bloomberg reported.
In August, Paramount scrapped its $3 billion auction — which included streaming channel BET+ along with VH1 — after media mogul Tyler Perry reportedly did not raise his $2 billion bid for the asset.
Perry, who owns a 25% stake in BET+ and produces several shows for the network, had called the sale process “disrespectful” at a Bloomberg Equality event in October.
He also reportedly suggested the asking price for the channels was too high.
A rep for the “Madea” creator Perry did not return requests for comment.
Under CC Capital Partners, Chu has created a number of special purpose acquisition companies to acquire businesses. Last year, he merged one of the SPACs with the photo archive Getty Images Holdings.
CC Capital declined to comment on the reported talks to buy BET.
Comedian-turned-media mogul Byron Allen, whose broadcasting empire includes the Weather Channel, also emerged as a top bidder in the auction — but Paramount execs questioned his financing, sources told The Post.
This story originally appeared on NYPost
