Beautiful Virgin Islands

Sunday, Apr 05, 2026

What's the next mega media deal? Maybe nothing

What's the next mega media deal? Maybe nothing

Following the mega-merger between Discovery and CNN's parent company WarnerMedia on Monday, the biggest question in the media world now is "what's next?"

In one way or another, the prevailing view by media observers seems that more mergers and acquisitions are on the way. But here's a contrarian perspective: What if the the most important M&A deals are behind us — at least for the foreseeable future?

With competition in the streaming marketplace ramping up and companies needing scale to stay in the game, more mergers and acquisitions would seem to be the next logical step. Traditional media companies like Comcast's NBCUniversal and ViacomCBS could buy up networks and studios to bring in more content, or possibly partner up. And the tech titans, Amazon (AMZN) and Apple (AAPL), have the resources to do whatever they want in Hollywood. Amazon, for example, is reportedly in talks to buy MGM.

"How do we make money when all of the eyeballs are on Disney (DIS) and Netflix?" Mark Zgutowicz, senior internet and media analyst at Rosenblatt Securities, told CNN Business. "That's the challenge a lot of these companies are facing. How do we compete?"

That could mean more mergers and acquisitions, but there aren't many M&A type of transactions really left, Zgutowicz said.

"You have the two biggest platforms with Peacock and Paramount+, and some smaller companies out there like AMC Networks, Lionsgate and MGM," he noted. "But I'm not quite sure the encore to Discovery/WarnerMedia is going to be as strong."

So are there other pathways to winning in the streaming wars? And if so, what are they?

Invest more in what you already have


All eyes are now on NBCUniversal and ViacomCBS (VIACA).

Those two companies have invested a lot of time and a lot of money getting their streaming endeavors off the ground. NBCUniversal launched its new service Peacock last year. ViacomCBS' CBS All Access became Paramount+ in March. And both are trying to pack the same subscriber punch as Netflix and Disney.

Some observers wonder whether the two could join forces to create a media powerhouse capable of taking on everyone, which makes sense in theory.

NBCUniversal is the home of "The Office" and franchises like "Fast and the Furious" while ViacomCBS has "Star Trek" and Nickelodeon. That's alluring for almost any consumer.

Yet there are "massive conflicts" to the two coming together, according to Michael Nathanson, a media analyst at MoffettNathanson.

"For starters, you can't own two broadcast networks," he told CNN Business. "It's NBC and CBS. They would own channel two and channel four in New York City alone. It wouldn't work."

So that pairing, under current rules, would be unlikely to get regulatory approval.

NBCUniversal could instead help Peacock build scale by "spending more and putting more content on it," Nathanson argued. As for ViacomCBS, he believes the company might reach out to smaller content companies such as Lionsgate or AMC Networks (AMCX), so to get a little more scale for streaming."

The two services already have good options available to them such as making sports a bigger part of their offerings. In fact, they're already doing exactly that with the NFL — the most important property in all of sports and TV.

Following a massive renewed deal between the league and its TV partners in March, CBS' NFL games will air on TV and will stream on Paramount+.

NBCUniversal has "Sunday Night Football," the top-rated show in primetime TV, and Peacock will simulcast those games as well.

Paramount+ and Peacock aren't close to Netflix's 208 million subscribers globally (Peacock has 42 million sign-ups while ViacomCBS has 36 million subscribers between Paramount+ and Showtime), but they have sports, which Netflix does not, so that could be one way to help them stand out.

Arms dealing and ads


Beyond investing billions more in what you already have or acquiring more, there are potentially other ways to find success in streaming.

The first is by becoming a streaming arms dealer, as Sony (SNE) has lately.

Sony Pictures, one of the biggest studios in Hollywood, has a solid lineup of popular franchises, including Spider-Man. Instead of jumping head-first into creating its own streaming service, Sony sells its content to the highest bidders.

The studio made multi-year deals with Netflix and Disney in the past few months, which brings in millions in licensing fees and exposes Sony content to the streamers' massive audiences.

Another option for boosting revenue: Selling ads.

This is hardly revolutionary since TV has been making money via commercials since its inception, but it could help in bringing in more users eager for the content but who don't want to pay as much for it. This could lead to organic growth for services.

Streaming, which has mostly been built around paid subscriptions, has embraced advertising more recently with services like Peacock and Paramount+ both having ad-supported tiers. HBO Max, WarnerMedia's streaming service, also has an ad-supported option in the works.

So don't be too certain that the Discovery and WarnerMedia transaction will create a domino effect in the media industry leading to massive mergers or shocking acquisitions.

That could indeed happen since the Discovery and WarnerMedia deal proves that anything is possible in the streaming wars. Even so, Nathanson believes the merger between the two entertainment giants was "the last deal of meaning."

"The dominoes have already fallen," he said.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
×