Paramount in Talks with Fox and Sony for Home Entertainment Merger

Paramount Pictures is seeking to merge its home entertainment division with a rival and is in advanced talks with Sony Pictures and 20th Century Fox, according to the Financial Times. It is unclear which of the two companies will strike a deal with Paramount. None of the companies made any comment.

The negotiations have focused on combining disc production, distribution and back-office functions. One proposal would involve Paramount having its discs manufactured at Sony DADC rather than at Technicolor as it does now. The merger would result in considerable savings for Paramount at a time where home video sales are slumping and the studios find it increasingly hard to finance their film production.

Outward operation - including marketing and sales – would remain separate.