Paramount Skydance (NASDAQ:PSKY) plans to keep Warner Bros. Discovery (NASDAQ:WBD) largely intact if the David Zaslav-run media company merges with David Ellison’s firm, according to a report by Bloomberg on Monday.
The report, citing sources, said Paramount CEO Ellison wants to keep the creative teams of the two studios while consolidating some of the marketing and distribution.
It is still undecided whether Paramount would part with either companies’ real estate, including two of the most famous studio lots in Hollywood, sources told Bloomberg.
The report suggested that Ellison plans to merge Warner Bros.’ HBO Max into Paramount+, and he believes the combination of the two will allow more people to see the work of film and TV show creators and make his streaming platform “more compelling.”
There are no plans to sell or spin off the cable networks of the two businesses, the report said.
Last week, the Writers Guild of America, the labor union representing professional writers in the film, television, and radio industries, said it will work with regulators to block Paramount from buying Warner Bros., saying the transaction would be “a disaster for writers, for consumers, and for competition.”
Paramount has made three offers for WBD until now, all of which were swiftly rejected.