PARA-WBD merger creates scale (200M+ subs) but near-term status quo persists due to debt burden and delayed synergies.

Guys, the big news today is that Paramount has officially completed its merger or acquisition deal with Warner Bros. Discovery.

I mean, my short answer is yes, with a big note next to it. I mean, this makes the merged company an immediate major player, absolutely. This gives the combined HBO Max and Paramount Plus services just over 200 million subscribers.

There's a lot of talk about combining HBO Max and Paramount Plus or combining non-premium services, but they need liquidity to pay off those debts.

Look, I really think this is a very strong set of assets in the world of digital streaming. If they can get through the initial phase, if they can pay off the debts, and move from just surviving to actually investing in the business, but in the near term, I don’t think the landscape has changed much because I don’t think they will be able to pool and achieve synergies on the revenue side in the way they would like.

Lou, do you think there's a chance that this bundle will make it appealing enough for those of us who probably aren't paying for Paramount or HBO Max, whatever they call it now?

The package I subscribe to is through Disney, but it includes "HBO Max". So, I don't know, will it be taken away from me? Will I have to resubscribe to Paramount Max?

When we return, we will talk about potential winners other than Paramount and Warner Bros. Discovery.

I think that's the status quo, until Paramount can get on solid ground with regard to its debts, and then we'll see what they can do from there.

You know, some of the names I keep thinking about are TKO, who owns the UFC, and they've already made a big deal with Paramount. Now you have companies like ESPN, in which the league has a stake.

They need that content. CBS, Paramount, you know, that conglomerate needs that content.

Now they have a stronger partner with greater financial resources, such as CBS, which is now owned by the merged company.

But, we just talked about this. It is unlikely that Disney and Paramount will merge all their assets into one entity.