Netflix has dropped out of the bidding war for Warner Bros. Discovery, making Paramount Skydance the expected owner of WBD. A Paramount-WBD merger would unite two legacy media companies that have struggled with profitability for years while heavily investing in streaming and cable. Such a conglomerate would create a massive streaming entity combining Paramount+ with HBO Max and Discovery+.

Both companies have seen declining revenue and struggled with profitability, as shown in recent quarterly reports. Paramount reported losses of $6.19 billion in 2024, while WBD lost $11.31 billion during the same period. Analysts say Paramount "must have" WBD to achieve consistent profitability through content creation, theatrical releases, and licensing, as well as by deriving more value from its cable business.

The most obvious outcome for subscribers would be HBO Max becoming part of Paramount+, creating a larger, more valuable service that could command higher subscription prices. While Paramount's streaming business narrowed losses to minus-$158 million in Q4 2025, WBD's streaming generated $393 million in adjusted EBITDA for 2025. A successful merger would be the largest streaming merger ever and lead to further consolidation in the industry, with experts noting the trend toward fewer, larger super-platforms offering broader catalogs at higher price points.