Warner Bros. Discovery/Paramount Merger Talks
#16

(26-12-2023, 11:10 AM)VMPhil Wrote:  Brilliant Verge article on why this is such a bad idea:

www.theverge.com 

I appreciate the sentiment of the article but it misses the point. Consolidation will and, like it or not, must happen. There is simply no money to support the current amount of media companies.

WBD is $45bn in the red.
Paramount $15bn.
Comcast $97bn
Disney $48bn

Disney is healthy overall due to its total value and Comcast is ok as well - both have healthy debt to EBITDA ratios.

WBD and Paramount on the other hand have a horrible debt to EBITDA ratios.

Networth for the 4 companies is

Paramount $9.77bn
WBD $28bn
Disney $165bn
Comcast $177bn

Both Disney and Comcast have superb diversification of revenue streams but Paramount and WBD do not.

Add in the complications of Netflix (despite doom and gloom reporting, it actually has a very healthy debt to EBITDA ratio and its net worth is $215bn), Apple (let's don't go there... its pockets are literally endlessly deep) and Amazon (same as Apple).

Either Paramount or WBD will eventually go, be bought or merged unless some kind of miracle happens. The longer it takes until that happens, the more damaged they will become as their the networks and cable channels will decrease in value, create more debt and will become of less and less interest to anyone. Their streamers are another problem of course. Even adding Max and Paramount+ subscriber numbers together doesn't put them ahead of Disney+, let alone in touching distance of Prime or Netflix. If you combine Disney+ and Hulu subscribers, then Disney is ahead of Amazon and behind Netflix with all three having healthy numbers in excess of 200 million. Max and Paramount+ completely trail them with less than 80 million each.

Additionally, both are yet again behind from a tech and service perspective as neither offer basic, ad-supported tiers.

And then WBD obviously has the Discovery+ issue... subscriptions are given away for free everywhere in order to show some kind of growth.

So the reality is that WBD and Paramount either merge and shed everything that doesn't make profit and turn themselves into a lean, profit-making business... or one of them gets snapped up by someone else.
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Messages In This Thread
Warner Bros. Discovery/Paramount Merger Talks - by Omnipresent - 20-12-2023, 10:17 PM
RE: Warner Bros. Discovery/Paramount Merger Talks - by Blubatt - 22-12-2023, 08:09 PM
RE: Warner Bros. Discovery/Paramount Merger Talks - by VMPhil - 26-12-2023, 11:10 AM
RE: Warner Bros. Discovery/Paramount Merger Talks - by Stuart - 28-12-2023, 10:51 AM
RE: Warner Bros. Discovery/Paramount Merger Talks - by Adsales - 29-12-2023, 11:24 AM
RE: Warner Bros. Discovery/Paramount Merger Talks - by F4C - 28-12-2023, 07:39 PM
RE: Warner Bros. Discovery/Paramount Merger Talks - by Kunst - 28-12-2023, 09:01 PM
RE: Warner Bros. Discovery/Paramount Merger Talks - by Brekkie - 29-12-2023, 06:22 PM
RE: Warner Bros. Discovery/Paramount Merger Talks - by RhysJR - 29-02-2024, 12:13 AM
RE: Warner Bros. Discovery/Paramount Merger Talks - by Keith - 29-02-2024, 10:13 AM
RE: Warner Bros. Discovery/Paramount Merger Talks - by VMPhil - 29-02-2024, 12:12 PM
RE: Warner Bros. Discovery/Paramount Merger Talks - by W. Knight - 19-04-2024, 06:03 PM
RE: Warner Bros. Discovery/Paramount Merger Talks - by RhysJR - 29-04-2024, 10:20 PM
RE: Warner Bros. Discovery - Company News and Discussion - by James2001 - 21-12-2023, 01:23 AM
RE: Warner Bros. Discovery - Company News and Discussion - by BBCChameleonFan - 21-12-2023, 06:40 AM
RE: Warner Bros. Discovery - Company News and Discussion - by ckck1704 - 21-12-2023, 09:17 AM
RE: Warner Bros. Discovery - Company News and Discussion - by Rdd - 21-12-2023, 11:34 AM
RE: Warner Bros. Discovery - Company News and Discussion - by ckck1704 - 21-12-2023, 05:08 PM
RE: Warner Bros. Discovery - Company News and Discussion - by Adsales - 21-12-2023, 06:02 PM
RE: Warner Bros. Discovery - Company News and Discussion - by Keith - 21-12-2023, 09:52 AM
RE: Warner Bros. Discovery - Company News and Discussion - by VMPhil - 21-12-2023, 10:23 AM
RE: Warner Bros. Discovery - Company News and Discussion - by Brekkie - 21-12-2023, 10:45 AM

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