Warner Bros. Discovery has ended talks with Paramount Global about a potential acquisition after stock prices for both companies dropped to a 52-week low.
A report from CNBC claims WBD broke off talks after spending several months exploring a potential takeover of the company. The report added that Skydance Media continues to perform “due diligence” on a potential purchase of the company.
A previous CNBC report claimed WBD CEO David Zaslav and Paramount CEO Bob Bakish had discussions about a potential merger late last year. The talks then heated up in January, but have since cooled as Warner Bros. Discovery stock dropped 10% last week after it failed to reach targets for earnings and revenue. The company’s stock price has nearly been cut in half in the past year and is trading at 52-week lows.
Meanwhile, Paramount just implemented widespread job cuts, eliminating the roles of 800 inside the company as its stock price also has dropped. It will release its financial results on a Wednesday earnings call.
