In the wake of the historic $110 billion takeover of Warner Bros. Discovery (WBD), Paramount Global has announced plans to merge Paramount+ and HBO Max into a single streaming powerhouse. The move, confirmed by Paramount CEO David Ellison during an investor call on Monday, aims to create a service with over 200 million direct-to-consumer subscribers.
Scaling Up to Compete
The combined entity will position Paramount as a top-tier rival to industry leaders. While Netflix remains the frontrunner with over 325 million subscribers, the new Paramount/HBO hybrid will rival the combined scale of Disney+ and Hulu, significantly outperforming smaller players like Peacock (44 million).
A Sports Rights Titan
The merger will consolidate a massive sports portfolio under one roof, including:
- NFL, MLB, and NHL
- March Madness and College Sports
- UFC (with plans to migrate events to HBO platforms)
David Ellison noted that while the services will merge, the HBO brand will continue to “operate with independence” within the new ecosystem. Plans for a separate sports-only streaming service previously developed by TNT Sports have been scrapped in favor of this integrated model.
Regulatory Path and Timelines
Paramount expects to close the deal by September 30, 2026. Despite potential regulatory scrutiny, Ellison stated there are “no statutory impediments” to the merger. If the deal is delayed past the deadline, Paramount faces a “ticking fee” of approximately $650 million per quarter.