Five Myths About The Paramount/Warner Bros. Discovery Merger

Aug 11, 2026 05:22 AM - 2 hours ago 1

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One of the soiled small secrets of publicity is that if you reporters and manufacture analysts to constitute astir your story, the instrumentality is to framework it successful a measurement that resonates pinch them personally and allows them to constitute a communicative that sparks a batch of attraction and postulation to the story.

On that basis, the ongoing conflict to complete the merger of Paramount and Warner Bros. Discovery is for illustration catnip to immoderate journalist aliases master moving successful the intermezo business. At a clip erstwhile Hollywood is facing each sorts of tailwinds economically and the streaming business is maturing successful ways that tin confuse moreover the experts, a communicative that involves the merger of 2 of the industry’s storied companies is simply a God send.

Adding to the operation is the subtext of an Administration that revels successful inserting itself into immoderate business woody and the ongoing communicative of the efforts of a politically friends billionaire trying to adjacent the deal. It’s the communicative that has sparked hundreds of basking takes.

And if get past the hype, you’ll recognize that astir of them are wrong.

I’ve been covering this merger since its earliest days astatine my TooMuchTV newsletter and 1 point that has taught maine is location are a batch of misconceptions astir this woody and what it mightiness mean for Hollywood.

So present are the apical 5 myths astir the projected Paramount/Warner Bros. Discovery merger, moreover though immoderate of these views are truthful commonly held they person almost go intermezo manufacture accepted wisdom.

Paramount Needs To ‘Scale’ To Survive

In this context, standard intends “get arsenic large arsenic possible” and if modern-day firm strategy has a mantra, it is to standard aliases die. The mentation is that the bigger a business gets, the much it acquires its closest competitors, the much capable it is to predominate the marketplace and group prices astatine an often unnaturally fierce level.

The “economy of scale” mentation explains successful ample portion why truthful galore parts of the American system feels unfair and manipulative. Industries from operation fastener manufacturers to sports leagues for kids person each followed the aforesaid trajectory. Consolidate title down to a mates of ample companies, and past gouge customers who don’t person an replacement while simultaneously boosting profits by cutting customer work and reducing quality.

Unfortunately for David Ellison, “scale” doesn’t activity the aforesaid measurement successful the intermezo world.

No matter really large your media institution becomes, you can’t standard capable to destruct different choices from the marketplace. Not moreover the largest workplace tin unit moviegoers into paying to spot only their movies and not moreover Netflix tin forestall personification from canceling their streaming subscription and signing up for different service. In theory, gaining standard is expected to prevention money by eliminating alleged redundant backmost agency jobs, but moreover those savings thin to beryllium overblown.

The 1 portion of this merger that would beryllium aided by scaling is the 1 portion of the business Ellison tries difficult not to discuss: the cablegram channels. Combining the cablegram TV offerings of some companies would give it unprecedented leverage during carriage negotiations pinch Live TV platforms. In fact, Ellison has said successful interviews that would beryllium the lawsuit and he has pointed to this gross arsenic a superior measurement Paramount could salary down its debt.

Opposition To The Merger Is All About The Politics

This is simply a talking constituent you perceive a awesome woody from David Ellison and his surrogates. The only logic why those 12 authorities lawyer general’s revenge a suit opposing the merger is they dislike Donald Trump and judge Ellison is excessively adjacent to the President. They reason he’ll alteration CNN to go much blimpish friendly, and that Paramount has been excessively eager to please the President.

All of that whitethorn beryllium true, but arsenic my begetter erstwhile said, 2 things tin beryllium existent astatine the aforesaid time.

Yes, a batch of group aren’t precisely thrilled pinch Donald Trump’s authorities and the measurement he attempts to manipulate the press. And galore group rightfully interest that fixed the turmoil and heavy-handed editorial interference astatine CBS News since David Ellison’s Skydance took complete doesn’t bode good for CNN.

But nary of that matters successful this context. Combining CNN and CBS News would apt beryllium a achy journalistic disaster, but it doesn’t immoderate awesome competitory issues.

However, the governmental points support being brought up David Ellison and his supporters because claiming the suit is each astir Donald Trump is simply a spot for illustration conservatives who declare immoderate disapproval of the President is an illustration of Trump Derangement Syndrome (TDS). It shifts the chat into an statement astir governmental beliefs and distant from the substantive issues surrounding this projected merger.

For early reference, anytime you perceive personification opportunity guidance to the merger is driven by politics, inquire yourself what it is they don’t want to talk about.

A Combined Paramount & WBD Is Going To Produce 30 Theatrical Movies A Year

Since earlier Paramount was capable to push Netflix retired of the measurement and make a winning bid for Warner Brothers, David Ellison has touted his committedness that the mixed studios would merchandise astatine slightest 30 theatrical films a year.

And successful caller days, Ellison has announced that he is promising theatre owners a contractual statement to merchandise 30 films a year, pinch an exclusive 45-day theatrical windows and a moratorium connected distributing the movies connected streaming services for astatine slightest 90 days.

This is simply a taxable that Ellison and different Paramount executives proceed to stress. In part, successful consequence to disapproval that erstwhile Disney acquired Fox, it decimated that iconic studio’s theatrical merchandise schedule.

However, it’s besides a celebrated taxable because it is simply a basking fastener rumor for a batch of group successful Hollywood. There is simply a wide belief that much movies should beryllium released into theaters alternatively of premiering digitally. And that the magnitude of clip for a theatrical movie to deed streaming should beryllium expanded successful bid to boost the theatrical business.

The problem pinch each of this is that it doesn’t matter successful the discourse of this merger. One institution could ain each Hollywood workplace and merchandise 100 theatrical films a year. But it would still beryllium a monopoly that strips distant title and ensures location will beryllium little diverseness successful produced movies. And little likelihood Hollywood creatives will beryllium capable to discuss a amended deal.

Whether aliases not Paramount would nutrient 30 theatrical films a twelvemonth doesn’t really matter. Although I’ll reason that fixed the magnitude of spending Ellison has promised to trim erstwhile the merger is approved, I person superior doubts he tin make it hap nether those circumstances.

10 films a twelvemonth aliases 30, combining 2 of Hollywood’s large 5 studios is anti-competitive and deserves to extremity simply connected its merits.

Approving This Merger Will Put ‘Hollywood Back To Work’

This is the “Have A Nice Day!” of merger negotiations. It’s nary concealed that employment successful Hollywood’s intermezo business is down and arsenic a result, a number of knowledgeable creatives person gone months aliases years without a caller job.

However, it isn’t clear to maine really approving this merger would thief that situation. This isn’t for illustration a strike, wherever group are retired of activity during negotiations. And moreover if you judge the 30 theatrical films a twelvemonth pledge, there’s nary guarantee that will mean much films will beryllium produced successful the United States, overmuch little Southern California.

You’ll announcement that David Ellison isn’t promising to make less successful Hungary aliases Serbia and move those productions backmost to Hollywood.

Not only does this projected merger not guarantee much activity for Hollywood, it’s almost definite immoderate number of thousands of group will suffer their jobs arsenic portion of Paramount’s promised $6 cardinal post-merger “resizing.”

So while it’s imaginable approving this merger will put Hollywood backmost to work, that could conscionable mean moving for Door Dash.

When reference pieces astir the projected Paramount/Warner Bros. Discovery merger, I would counsel you to disregard what anyone says during this suit and salary adjacent attraction to what they do.

You are going to perceive a batch of promises made by David Ellison and others successful the coming weeks and months. And arsenic difficult arsenic whitethorn beryllium to believe, sometimes they are conscionable telling Hollywood what they deliberation the manufacture wants to hear.

If The Merger Falls Apart, Netflix Will Step In And Make Another Bid For Warner Bros. Studios

I perceive this speculation a awesome woody from intermezo manufacture creatives, but I’m not convinced it’s a apt scenario.

I ever thought that Netflix would person been the champion location for Warner Bros. Studios. But fixed the magnitude of pushback Paramount has received complete this deal, I fishy Netflix mightiness not beryllium eager to measurement into this thresher of bad publicity.

At this point, Universal mightiness beryllium amended fresh for Netflix, assuming they are consenting to woody pinch the complaints. Universal has turnkey movie workplace and theatrical movie business. As good arsenic taxable parks, which would connection a number of transverse promotional opportunities for Netflix.

How apt is either scenario? If I had to put money connected something, I would foretell Netflix declines either acquisition for now. But I person learned complete the years adjacent to downplay Netflix’s firm ambitions.