• by Wayne Friedman , July 2, 2024

Looking to remedy its streaming business financial losses, Paramount Global may make a more aggressive move by potentially looking to merge its streaming business with an existing legacy TV/studio-based premium streaming platform, according to CNBC.

This might include Warner Bros. Discovery's Max streamer service. Separately, Paramount is also considering a deal with a technology/media-focused company, according to the business TV network.

Another report says the IAC, the media/internet company controlled by TV-studio executive Barry Diller, is also considering a bid.

Paramount Global representatives had no comment when contacted by Television News Daily.

The move by Paramount -- which recently entertained separate offers by Skydance Media and Sony Pictures Entertainment -- will shift the company into a more aggressive position with regard to its main Paramount+ streaming platform.

Recently, Shari Redstone, president of National Amusements and chair of the board of directors of Paramount Global, rejected the latest offer from Skydance. Over the past 12 months, Paramount stock has tumbled 38% to $10.14.

In the fall of last year, Paramount and Warner Bros. Discovery held preliminary discussions about possible bundling of Paramount+ and Max. Those talks ended with no actions taken by either company.

CNBC cited a transcript obtained of a recent town hall event where Chris McCarthy, co-CEO, Paramount Global talked up the company's valuable library of TV/movie content, that Paramount+ has access to, is likely to be a major draw for any active premium streamer as a potential partner looking to gain scale in a maturing streaming marketplace.

In 2023, Warner Bros. Discovery posted a small but positive profitability for its direct-to-consumer (D2C) streaming business -- $103 million in adjusted cash flow (earnings before interest taxes depreciation, and amortization). 

Paramount Global's results for its D2C businesses in 2023 were still underwater, with a negative cash flow of $1.7 billion. In the first quarter of this year, it narrowed that period's negative cash flow by 44% to $286 million.

This story has been updated.