Warner Bros. Discovery and Paramount Global are discussing a potential merger.

The merger aims to consolidate the entertainment and streaming industry to compete with Netflix and Disney Plus.

Potential regulatory scrutiny and Paramount's struggles in streaming could bring uncertainty to the merger.

The merger would expand program offerings, consolidate costs, and merge franchises like 'Mission: Impossible' and 'Star Trek'.

The merged company might combine resources of CBS News and CNN.

Both companies saw a slight drop in shares following the merger news.