Regretting the Paramount merger - Drexel Triangle
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Opinion Regretting the Paramount merger By Chan Chung Oct. 16, 2026 Chan Chung Photo by Rocco Fonseca | The Triangle Last week, Paramount closed out a deal to merge with Warner Bros. Discovery, Inc. after settling an antitrust lawsuit by state attorneys general. The combined new company will control a massive media empire including Paramount+, HBO Max, Pluto TV, CBS, CNN, Comedy Central, Nickelodeon, TNT, TBS, HBO, MTV, Food Network, DC Universe, "Harry Potter," "Star Trek," and "Mission: Impossible." This further cements an oligopoly within the media industry, which inevitably is bad news for people who enjoy cinema, streaming, and good journalism. This is because the premise of capitalism is based on a healthy amount of competition, which oligopolistic industries inherently prevent. The massive size of Paramount lends itself to these problems. With large size comes economies of scale. That is, certain costs stay fixed or grow logarithmically as organizational size increases. For example, the size of the information technology department does not need to grow with the number of computers because a centralized server can uniformly apply certain settings across a whole group of computers. This step is crucial to cementing the oligopoly. Potential new competitors face steep barriers of entry into this industry which stops them from even trying. Without the threat of new...
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