Warner Bros Discovery and Paramount Global have held early talks about merging according to multiple media reports.
Warner CEO David Zaslav and Paramount CEO Bob Bakish met this week in New York to discuss a possible deal.
The meeting was first reported by news site Axios, citing multiple sources. It said Zaslav had also spoken to Shari Redstone, who owns Paramount’s parent company National Amusements.
Talks between Warner and Paramount are still at an early stage, and may not ultimately result in a deal, according to the Axios report.
A deal would bring together two of Hollywood’s “Big Five” studios, with Warner and Paramount’s combined market value standing at $38bn (£30bn).
The chief executives reportedly discussed how each company’s main streaming service, Paramount+ and Max (formerly HBO Max), could merge to better take on rivals Netflix and Disney Plus.
AT&T’s WarnerMedia and Discovery completed their merger last year to become Warner Bros Discovery. The company’s portfolio includes Warner Bros. movie studios, Discovery Channel, Warner Bros. Entertainment, CNN, HBO, Cartoon Network, streaming services Discovery+ and Max.
Paramount’s assets include its movie studio, broadcast network CBS, cable channels such as MTV and Nickelodeon, and streaming service Paramount+.