Warner Bros. Discovery in talks to merge with Paramount

Warner Bros. Discovery has joined the ranks of companies expressing interest in a possible merger with Paramount, according to two people with knowledge of the discussions.

David Zaslav, CEO of Warner Bros. Discovery, had lunch this week with Paramount CEO Bob Bakish and expressed interest in a possible merger of the two companies, the two people said.

At the luncheon, held Tuesday at Paramount’s headquarters in Midtown Manhattan, the prospect of a merger came up in a wide-ranging conversation between Mr. Bakish and Mr. Zaslav, the people said.

Warner Bros. shares Discovery fell after news of the deal was previously reported by Axios. Paramount shares fell slightly in aftermarket trading.

This is a development story. Check back for updates.