London Daily

Focus on the big picture.
Friday, Jul 10, 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

0:00
0:00
Close
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Barclays and PwC Report Examines Economic Opportunities from Financial Asset Tokenisation
Pound Sterling Strengthens as Investors Anticipate Further Bank of England Rate Increases
British Business Bank Invests Twenty-Seven Million Pounds in Kraken Technology Defence Expansion
UK Business Secretary Peter Kyle Backs State Investment Strategy Inspired by US Approach
UK Electricity System Issues Margin Notice as Heatwave Tightens Evening Supply Outlook
Labour Leadership Contest Opens as Andy Burnham Emerges as Expected Sole Candidate
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Rare Early Copy of US Declaration of Independence Found in British Archive
Cornish Language Revival Gains Momentum Through Schools and Community Programs
UK Authorities Face Criticism Over Prisoner Early Release Safeguards
Clacton By-Election Set After Nigel Farage Resigns Seat to Trigger Contest
Government Agencies Review Long-Term Fiscal Risks from Aging Population and Low Productivity
UK Heatwaves Expose Pressure on Public Transport and Housing Infrastructure
UK Government Prepares Welfare Review Amid Debate Over Personal Independence Payment Reform
UK Government Expands Rapid Endometriosis Testing Across NHS Services
Vistry Group Issues Profit Warning as UK Housing Market Faces Continued Pressure
Virgin Media Receives Record Twenty-Eight Million Pound Fine Over Contract Cancellation Failures
Office for Budget Responsibility Warns UK Public Finances Face Long-Term Pressure
UK Watchdog Warns Regional Income Gap Has Barely Narrowed in Three Decades
IMF Raises United Kingdom Growth Forecast as Inflation and Energy Pressures Ease
UK Government Launches Regulatory Reform Bill to Speed Up Commercialization of Innovation
Prince Harry Loses Privacy Lawsuit Against Daily Mail Publisher After High Court Rejects Claims
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
Jet2 Reports Strong Summer Travel Demand as Bookings Rise Seven Percent
Prince Harry Loses High Court Privacy Case Against Daily Mail Publisher
British Universities Warn Against Potential European Union Tuition Fee Changes
Heal Fertility Clinic Investigated After Embryo Biopsy Sample Mix-Up
Resolution Foundation Warns Regional Income Divide Has Barely Improved Since 1997
British Markets Remain Cautious as Middle East Tensions Rise and Government Transition Nears
Andy Burnham Poised to Become United Kingdom Prime Minister in Expected Political Transition
Nigel Farage Resigns as Member of Parliament Ahead of By-Election Amid Funding Investigation
Trump Declares Iran Ceasefire Over After Renewed Attacks on United States Bases
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
×