Paramount is hunting for a streaming partner, could kick off a wave of deals

Core Insights - Warner Bros. Discovery is interested in merging its streaming service Max with Paramount+, aiming to enhance competitiveness against Netflix and Disney's platforms [1] - Paramount Global is exploring partnerships with technology platforms and other media companies to potentially merge its Paramount+ service, which could lead to a new wave of streaming collaborations [5][8] - A merged streaming service could reduce customer churn by offering diverse programming and alleviate financial losses for Paramount Global by transferring ownership [10] Financial Performance - Warner Bros. Discovery's direct-to-consumer business achieved $103 million in annual adjusted EBITDA in 2023, a significant recovery from a $2.1 billion loss in the previous year [3] - Paramount Global reported a loss of $1.67 billion in direct-to-consumer operating income before depreciation and amortization in 2023, an improvement from a $1.8 billion loss the year before [3] Market Position - Max has approximately 100 million global subscribers, with 52.7 million in the U.S., while Paramount+ ended its first quarter with 71 million subscribers [11] - The potential merger would create a powerful combination of content across TV, film, and sports, attracting millions of viewers [4] Strategic Discussions - Paramount Global is in discussions with various media and tech companies regarding the structure of a potential merger, with no detailed plans for a joint venture with Warner Bros. Discovery yet [6][9] - Comcast's NBCUniversal has also shown interest in a joint venture with Paramount+, but previous talks did not progress significantly [7]