President and CEO of Warner Bros. Discovery's David Zaslav speaks during the New York Times' annual DealBook Summit on November 29, 2023 in New York City.
Michael M. Santiago | Getty Images
Warner Bros. has backed out. Discovery has announced a potential takeover of Paramount Global, halting talks after several months of kicking the tires on merging the media companies, according to people familiar with the matter.
Skydance Media, the film and TV studio run by David Ellison, is still conducting due diligence on a potential deal, two of the people said.
Paramount Global formed a special committee, which appointed its own financial advisor, to examine potential offers for the entire company or specific assets. Media mogul Byron Allen offered $14 billion for the company last month, even though he has a history of bidding and not buying large media assets.
Comcast, owner of NBCUniversal, is not interested in acquiring Paramount Global's assets, one of the people said. Comcast is working with house bankers to explore a potential business partnership with Paramount Global, according to people familiar with the matter.
This could include bundling or merging the Peacock and Paramount+ streaming services, as previously mentioned The Wall Street Journal, or a different arrangement. However, it is unclear whether Paramount Global would be interested as it explores sale scenarios.
Spokespeople for Comcast, Paramount Global, Skydance Media and Warner Bros. declined to comment. Discovery Comment.
The CEO of Warner Bros. Discovery's David Zaslav had a preliminary conversation with Paramount Global CEO Bob Bakish, CNBC reported in December. The two companies engaged in more serious merger discussions in January, but talks cooled this month.
Warner Bros. shares fell. Discovery rose 10% on Friday after the company missed analysts' earnings and revenue targets. Shares are down 47% in the past year and are near a 52-week low.
Paramount Global is also trading near a 52-week low as it prepares to report earnings on Wednesday.
Watch: The big question facing Warner Bros. Discovery is whether it can grow, says Tom Rogers
“Infuriatingly humble alcohol fanatic. Unapologetic beer practitioner. Analyst.”