Warner Bros Discovery Inc (NASDAQ:WBD, ETR:J5A) has reportedly slammed the brakes on plans to acquire Paramount Global (NASDAQ:PARA) after several months of deliberations.
After David Zaslav and Bob Bakish, respective chief executives of the two studios, held talks in recent months, discussions have now cooled off, according to CNBC-cited sources.
Skydance Media is among companies still in the running to purchase Paramount, the sources said, with CNBC parent Comcast open to a partnership but not a takeover
Shari Redstone, chair of Paramount's parent company, had reportedly been exploring the sale of his controlling stake in the studio late last year.
As per CNBC, a special committee with its own financial advisor has been set up by Paramount to explore potential bids for the whole company or certain assets.
Speculation had appeared that Warner Bros and Paramount could combine their streaming services, Max and Paramount, to better rival the likes of Netflix and Disney+.
Such a deal would have created a mega studio, with each sitting among Hollywood’s so-called ‘big five’.
The news comes after Warner Bros’ shares took a hit late last week as the firm reported worse-than-expected revenue and earnings.
Paramount is due to report on Wednesday meanwhile, with shares having fallen almost 50% over the past year.