After months of speculation surrounding a significant merger between Warner Bros. and Paramount Global, a recent report indicates that Warner Bros. has decided to withdraw from the proposed agreement.

Warner Bros. Discovery has put the brakes on merger discussions with Paramount, citing a significant 47% decline in its stock value over the past year, nearing a 52-week low. Despite this setback, Skydance Media, led by David Ellison, intends to persist with its thorough examination of a potential deal between the two entities, even as talks are temporarily suspended. Ellison has personally explored the prospect of acquiring Paramount Global with the aim of privatizing the company.

Rumors surrounding the merger discussions between Warner Bros. and Paramount surfaced last December, sparking widespread excitement online about the potential collaboration and the potential crossover of franchises from the two renowned studios. Warner Bros. Discovery CEO David Zaslav and Paramount Global head Bob Bakish initially engaged in preliminary discussions before intensifying their conversations this January as both struggling companies explored the prospect of merging. However, insiders familiar with the negotiations indicate that talks have since cooled off this month.

Paramount Global has recently formed a committee, spearheaded by a financial advisor, to evaluate bids for the company as well as individual assets. In addition to David Ellison's expressed interest, media tycoon Byron Allen submitted a $14 million bid for Paramount Global in January. Meanwhile, Comcast has been working with financial experts to assess the viability of a business collaboration with the company, although Comcast has stated it has no intention of acquiring assets.