Paramount's Plan to Buy WBD Would Kill HBO Max

As part of its bid to acquire Warner Bros. Discovery, Paramount plans to shut down HBO Max and fold its content and subscribers into the Paramount+ streaming service, as reported by Bloomberg. The move is a key part of CEO David Ellison's strategy to build a scaled streaming competitor to Netflix and Disney.

• Some assembly required: Ellison's plan avoids a wholesale dismantling of WBD, protecting its creative teams and key cable networks like CNN. However, back-end operations like marketing and distribution would be consolidated to create efficiencies.

• An uphill battle: Making Paramount+ the flagship service is a gamble. According to figures from The Desk, HBO Max is the larger platform with over 125 million subscribers to Paramount’s nearly 78 million, and it generated more revenue last quarter ($2.8 billion vs. $2.2 billion).

• A tough sell: The deal faces major hurdles, as WBD has already rejected multiple offers. One recent bid was worth nearly $60 billion, which WBD executives reportedly felt was too low.

The proposal underscores the brutal realities of the streaming wars, where scale is seen as the only path to survival, even if it means sacrificing a stronger brand for a long-term strategic vision. Ellison's vision for the combined company reportedly includes leveraging AI to ramp up film production. Meanwhile, WBD has already forged other alliances, launching a streaming bundle with Disney+ and Hulu after previous talks with Paramount stalled.