Warner Bros. Discovery and Paramount are showing observers that while New York has a reputation for being the city that never sleeps, Hollywood is a viable competitor for that title as well. Despite the rapid approaching of Christmas and New Years, the two legacy media companies are reportedly in talks about a merger, and Paramount is back in deliberations over a sale of BET.

• WBD CEO David Zaslav is well-known for cost-cutting measures at WBD in the past year, including the removal of content from Max.
• Zaslav could be driving efforts at Paramount to sell off BET ahead of the proposed merger.
• Other assets like Paramount’s kids’ streamer Noggin could be on the chopping block, and Paramount could begin licensing its titles at a higher rate as well.

Is Zaslav Behind New Attempts to Sell BET?

WBD’s chief executive David Zaslav did not engender a ton of warm feelings amongst analysts and artists in 2022. Cost-cutting measures at the newly combined company in order to reduce both short-term and long-term debt led to some highly unpopular decisions, including the shelving of the essentially complete “Batgirl” movie and a series of widely-publicized content cuts on WBD’s streamer HBO Max (now simply Max).

Now, Zaslav might be bringing his eye for savings to Paramount. That company attempted to sell BET Media Group earlier this year, but eventually removed it from the market after not getting what it felt was a viable offer. But Zaslav could be encouraging Paramount executives to resume sale talks ahead of a potential merger, which would lower the valuation of Paramount ahead of its acquisition.

That would smooth the way toward completing the deal, and bring in an infusion of cash for Paramount as well as divest an asset that the company clearly sees as non-core to its operations going forward. It would also reduce Paramount’s debt load by 25%, which would ease the way toward completing an acquisition of the companies, especially considering WBD’s debt load currently stands at around $45 billion.

What Else Could Zaslav Get Rid of If Paramount and WBD Merge?

If Zaslav were to become the head of a combined Paramount/WBD, it feels safe to assume that a new round of content cuts would hit Paramount+. That streamer already removed some underperforming titles this summer, but considering Zaslav was willing to dismiss even high-profile titles like “Westworld” from his streaming services, a more comprehensive content cull would be in no way surprising.

Other Paramount streaming assets like Noggin could also be on the table. That kid-focused streamer was put on the sale block by Paramount earlier this year, similar to BET, and like BET the company ultimately decided not to sell. That could quickly change with merger talks now underway.

Would any of CBS’s live sports rights fall under Zaslav’s discerning eye? It’s possible, but less likely. Paramount holds a package of rights from the PGA Tour until 2030, and the Professional Bull Riders Association until 2028. Zaslav could try to get out of those deals early, but it seems highly unlikely that he’d give up CBS’s NFL package or its lineup of college football and basketball.

One Paramount asset that observers should expect to stay with the merged company is Pluto TV. WBD has had plans to create a free ad-supported streaming platform of its own for some time, and reiterated those plans in May. But if it does merge with WBD, it would have a ready-made ad-supported video-on-demand (AVOD) platform with tens of millions of monthly active users.

There’s a wide range of items at Paramount that could be struck from the budget if it merges with WBD. Audiences will have to keep their fingers crossed that cuts don’t affect their favorite programming segment, but it’s almost certain that Zaslav will drive some budget reductions if the two companies do come together.