The $110 billion merger between Skydance’s Paramount and Warner Bros. Discovery seems inevitable at this point. The only hurdle is regulatory approval, but this merger is much less problematic in regards to monopolistic concerns than what could have been a merger between Netflix and Warner Bros. Discovery.
With 300 to 325 million or so worldwide subscribers, once you add Warner’s HBO Max subscriber base of 125 to 135 million, Netflix would not only have close to a half-billion worldwide subscribers, but close to a 40 percent market share.
The combined Paramount+ and HBO Max subscribers land at right about 200 to 225 million, with a 20 to 23 percent market share.
So, the Skydance merger is much more palatable to regulators and much more consumer-friendly.
Don’t misunderstand, all of this merging sucks, but in the cards we’ve been dealt, this is the best outcome.
Already, Paramount has confirmed what we already knew would happen… HBO Max and Paramount+ are expecting to merge.
Skydance CEO David Ellison “confirmed that HBO Max and Paramount+ would be combined into one streaming platform boasting over 200 million subscribers,” reports the far-left Wrap. “The company is already on track to merge the backend infrastructure of Paramount+, Pluto TV, and BET+ by the middle of 2026.”
“We think the combined offering, and given the amount of content and what we can do from the tech side, really will put us in a position to be able to compete with the most scaled players,” Ellison explained.
Ellison confirmed that there is no intention of meddling with what has made HBO so special. “HBO is a crown jewel in this business having brought to life some of the most powerful stories told over generations,” Ellison said. “Our viewpoint is HBO should stay HBO. They built a phenomenal brand. They’re a leader in the space, and we just want them to continue doing more of it.”
While I’m no HBO fan, there is no question it is the top in quality programming with a large, loyal, and elite subscriber base.
Best of all, the news for CNN is pretty bad… Skydance does not intend to sell the fake news outlet or any of the other cable channels acquired through the merger, like the Comedy Channel, TNT, and MTV.
This means that with Skydance already in possession of CBS News, CNN will be hit with massive layoffs due to redundant jobs.
Why pay two people to lie when you can pay one?
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