Paramount Global (NASDAQ:PARA) could be in discussions to merge its Paramount+ streaming service with another platform, according to a CNBC report. The report stated that Warner Bros. Discovery (NASDAQ:WBD) could be interested in Paramount’s streaming service.
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Warner Bros. Discovery – A Potential Suitor for Paramount+
The combination of WBD’s HBO Max and the Paramount+ streaming service could result in both streaming services being able to better compete with other streaming services like Netflix (NASDAQ:NFLX). For Paramount, merging its streaming service could potentially reduce its customer churn as customers would have access to more diverse programming. At the end of the first quarter, Paramount+ had subscribers of more than 71 million, with net additions of 3.7 million.
The report stated that while there are no details about the joint venture with Warner Bros. Discovery, it is unlikely to be a 50-50 ownership split.
Other Potential Suitors for Paramount+
Last month, the media and entertainment company’s co-CEO Chris McCarthy stated at a town hall meeting that it was also considering partnering with a tech platform. McCarthy commented, “A tech partner lacks our content scale; together, we’d drive more minutes and profits.”
Earlier this year, Comcast’s (NASDAQ:CMCSA) NBCUniversal had also expressed an interest in its streaming service.
Billionaire Barry Diller Could Be Interested in Paramount
According to an exclusive NYT report, billionaire Barry Diller’s digital-media conglomerate IAC (NASDAQ:IAC) is exploring a bid for Paramount. The report stated that IAC has entered into a non-disclosure agreement with National Amusements following the collapse of Paramount’s deal with Skydance in June.
National Amusements is the majority shareholder of Paramount. 77% of the voting stock of National Amusements is controlled by Shari Redstone.
Is PARA a Buy or Sell?
Analysts remain bearish about PARA stock, with a Moderate Sell consensus rating based on two Buys, six Holds, and nine Sells. Over the past year, PARA has declined by more than 30%, and the average PARA price target of $11.68 implies an upside potential of 15.2% from current levels.
