Warner Bros. Discovery and Paramount in discussions for a max merger

Update February 27th, 12:57PM ET: Since the publication of this article, CNBC has reported that Warner Bros. Discovery has stopped pursuing an acquisition of Paramount. The original story follows below.

Warner Bros. Discovery might merge with another entertainment giant: Paramount. Sources tell Axios that Warner Bros. Discovery CEO David Zaslav held talks with Paramount CEO Bob Bakish on Tuesday about a possible merger.

The meeting reportedly took place at Paramount’s headquarters in Times Square, with the two CEOs discussing how the companies could complement one another. That could include combining Max and Paramount Plus to compete with streaming rivals like Netflix and Disney Plus.

Zaslav also discussed a deal with Shari Redstone — the head of Paramount’s parent company, National Amusements — Axios reports.

We still don’t know whether Warner Bros. Discovery would buy Paramount or National Amusements if a merger actually does happen, but a source tells Axios that “both options are on the table.” The Federal Trade Commission declined to comment on the potential deal.

A merger would narrow the number of players in the entertainment and streaming industry even more after Warner Bros. Discovery just completed its massive merger with Discovery last year.

Update December 20th, 4:43PM ET: Added that the FTC declined to comment.