With the news that Paramount Skydance is considering a bid to acquire Warner Bros Discovery (WBD), one analyst believes the streaming market is turning into the TV industry.
According to multiple reports, the new Paramount Skydance, which was only formed a month ago, is considering a bid for WBD, creating one of the biggest media companies in the United States.
Paramount is said to be preparing a majority cash bid, which sources claim would be backed by the Ellison family (David, owner of Paramount Skydance, and his father Larry who founded Oracle).
This is despite WBD’s plans to split into two separate companies next year (Warner Bros, comprising studios and streaming, and Discovery Global, including TV networks and Discovery+).
It’s thought Paramount Skydance wants to merge its streaming operations with WBD’s in order to take on the likes of Netflix and Disney+.
Neither company has commented on the reports.
If the deal were to go ahead, said Mike Proulx, VP, research director at analysts Forrester, it would “redefine the streaming landscape”.
“This could be good for consumers in the form of cost savings, but it also would reduce marketplace choice. What’s clear is that as the streaming market matures, it’s looking a whole lot like the OG television industry—all the way back to when there were just a few big networks and studios.”
