Discussions have emerged between media giants Warner Bros. Discovery and Paramount Global regarding a potential merger, confirmed by sources at Variety.

A recent lunch meeting between Warner Bros. Discovery CEO David Zaslav and Paramount Global CEO Bob Bakish in New York fueled talks of a possible merger. The conversation also involved Shari Redstone, whose National Amusements Inc. holds a controlling stake in Paramount Global, exploring the prospect of amalgamating the companies.

Representatives for Paramount Global and WBD refrained from commenting on the ongoing discussions. Initial reports about the talks were first disclosed by Axios.

While the specifics of the potential merger remain undisclosed, both entities have engaged financial advisors. However, the talks are in preliminary stages. Paramount Global’s long-term debt stood at $15.6 billion at the end of Q3, notably lower than WBD’s $43.5 billion. Despite this, Warner Bros. Discovery holds a higher market capitalization, amounting to $28.4 billion compared to Paramount Global’s $10.3 billion, The Variety Reported.

A prospective merger aims to leverage the strengths of both companies across television, film, sports, and streaming services to enhance operational efficiency. Notably, the consolidation of their premium streaming platforms, Max and Paramount+, intends to bolster competition against major players like Netflix, Disney+, and Hulu.

The potential merger holds significant implications for the film landscape. Warner Bros. Discovery could acquire prominent franchises from Paramount Pictures, expanding its portfolio to include blockbuster series like Terminator, Mission: Impossible, and Star Trek, while their existing repertoire boasts the DC Extended Universe and Harry Potter franchises.