Warner Bros Discovery and Paramount Global are reportedly engaged in preliminary discussions regarding a potential merger but will this strategy work out for the media giants?

If successful, this alliance would unite two of the world’s largest media companies, creating a conglomerate with a combined market value of £30 billion ($38 billion).

Paramount’s board has initiated steps towards a potential sale of the entertainment conglomerate, forming an independent committee to explore strategic alternatives, including a potential auction.

This development coincides with media mogul Byron Allen submitting a substantial $14 billion buyout bid for Paramount Global, encompassing the assumption of the company’s $15.6 billion debt. The board’s decision to seek alternative options, independent of controlling stakeholder Shari Redstone, comes as Allen, known for owning the Weather Channel, expresses interest in acquiring the entirety of Paramount Global, leading to a more than 6% rise in the company’s shares.

Additionally, amidst the ongoing shifts in the media landscape, Apple has emerged as a significant player committed to expanding its streaming division and exploring opportunities in theatrical film endeavours.

Recent talks with major exhibitors suggest that Apple is keen to follow in the footsteps of Amazon, signalling its intent to continue to invest a substantial $1 billion in theatrical movies. As the industry witnesses potential mergers and consolidations, Apple’s strategic moves further highlight the dynamic nature of the entertainment sector, with tech giants actively reshaping the future of media

The industry may witness further consolidation as companies seek to retain and attract subscribers amid changing consumer spending habits influenced by rising living costs.