Netflix shares fell this week after media reports detailed progress on a proposed merger between Paramount Global and Warner Bros. Discovery backed by the Ellison family, a combination analysts told CNBC could strengthen a rival studio’s position against the streaming leader. The developments were reported Wednesday by CNBC, NPR and CNN.
According to CNBC, analysts described the planned tie-up between Paramount and Warner Bros. Discovery as strategically “superior” to Netflix’s current content model, citing the breadth of combined intellectual property and production scale. The report said investors were reassessing competitive dynamics in the streaming sector following the announcement.
NPR reported that the Ellison family is central to the transaction structure, with Skydance Media and its backers positioned to play a leading role in reshaping Paramount’s ownership. The deal would merge Paramount with Warner Bros. Discovery in a transaction designed to consolidate libraries, franchises and distribution platforms, NPR said.
CNN reported that David Ellison would lead the combined company if the transaction is completed. The proposed structure would unite assets including Paramount Pictures, CBS, HBO and Warner Bros. film and television operations under a single corporate umbrella, according to CNN.
The potential consolidation comes amid continued pressure on legacy media companies to achieve scale as streaming growth moderates and content costs remain elevated. Industry analysts cited by CNBC said the merger could improve bargaining power in advertising and international distribution while reducing duplication in production and marketing.
Netflix has not announced changes to its strategy in response to the reports. The company has focused in recent quarters on advertising-supported tiers, password-sharing enforcement and selective price increases to sustain revenue growth.
Regulatory review would be required before any merger is finalized. The companies have not disclosed a definitive closing timeline, according to the reports.
ALSO READ: HGTV Cancels ‘Rehab Addict’ After Nicole Curtis Racial Slur Controversy
Hannah Price is a digital journalist who covers breaking news, global events, and trending stories with accuracy and speed. She has previously contributed to several online magazines and has built a reputation for verifying facts before publishing. Hannah believes in responsible reporting and aims to present stories in a way that readers can trust.
