According to Ars Technica, Warner Bros. Discovery has put up a “for sale” sign after receiving unsolicited acquisition offers and is now exploring “strategic alternatives to maximize shareholder value.” Paramount, which just merged with Skydance in August, is reportedly planning to keep “much of Warner Bros. Discovery Inc. intact” if a deal happens under CEO David Ellison’s leadership. The specific plan would merge HBO Max into Paramount+, creating a single platform with 77.7 million Paramount+ subscribers combining with WBD’s 128 million streaming users. Both companies are already profitable in streaming, with Paramount’s streaming business posting $157 million in adjusted operating income and WBD’s streaming division earning $345 million in EBITDA. This potential merger comes as WBD was already considering splitting into separate cable and streaming companies next year.
The streaming consolidation we all saw coming
Here’s the thing – we’ve been talking about streaming consolidation for years, but now it’s actually happening. And honestly, it makes sense. The market simply can’t support this many standalone services all competing for the same subscribers. Max Alderman from FE International nailed it when he said “the current market doesn’t support redundant platforms competing for the same audience.”
But let’s be real – this isn’t just about efficiency. It’s about survival. Both companies are profitable, but they’re looking at the long game against Netflix and Disney+. Scale matters, and combining libraries could create something that actually competes with the big dogs. Still, I can’t help but wonder – when did streaming become the very cable bundles we were all trying to escape?
What happens to HBO’s prestige brand?
This is where it gets really interesting. HBO has been the gold standard for premium television for decades – The Sopranos, The Wire, Game of Thrones. That brand carries weight. But let’s be honest, HBO Max already diluted the brand by mixing prestige content with reality shows and Cartoon Network stuff.
Julie Clark from TransUnion pointed out the risk of putting HBO under a “more mainstream umbrella like Paramount+.” And she’s right. Would The White Lotus feel as special sitting next to a Taylor Sheridan series? Probably not. But here’s the kicker – Alderman noted that “HBO is one of the few streaming brands that still commands prestige pricing.” So any smart buyer would be crazy to completely kill the HBO name.
I’m betting we’d see an HBO “tile” within Paramount+, similar to how Hulu exists within Disney+. But even that feels like a downgrade for a brand that’s been synonymous with quality for over 50 years.
What this means for your wallet
Let’s talk about the part that actually affects you – pricing. Vikrant Mathur from Future Today called this perfectly: subscribers get “a larger library, simpler content discovery” but we “risk increasing subscription costs.” Basically, you’ll pay more for the convenience of having everything in one place.
And let’s not forget the temporary chaos. Alderman warned about “friction” and “temporary confusion around pricing, content access, and brand continuity.” Remember when AT&T owned HBO Max? That was messy enough. Now imagine merging two completely different platforms with different billing systems, content libraries, and user interfaces.
The real question is whether consumers will actually see better value. A combined Paramount+/HBO Max would have an incredible library – from Mission: Impossible to Succession. But at what cost? We’re already seeing subscription fatigue set in across the industry.
This is just the beginning
What’s really fascinating is that this isn’t just about two companies merging. Clark called this a “stress test for future M&A.” If this deal goes through, it opens the floodgates for more consolidation. We’re talking about NBCUniversal, Lionsgate, AMC – all those mid-tier players looking for scale.
And if it doesn’t happen? Clark expects more “piecemeal” strategies like rights-sharing and joint venture bundles. Either way, the streaming landscape we’ve known for the past few years is about to change dramatically. The era of every studio having its own streaming service is ending, and honestly? It’s about time.
The regulatory hurdles will be significant, and Paramount just went through its own merger with Skydance. But if this deal clears, it signals that premium content under fewer umbrellas is back in style. And for an industry that’s been fragmenting for years, that might not be the worst thing – even if it means saying goodbye to HBO Max as we know it.
