In a surprising turn of events, Warner Bros. Discovery shares experienced a sharp decline on Wednesday following reports of possible discussions regarding a merger between the media company and its rival, Paramount Global. The stock of Warner Bros. Discovery plummeted by over 5%, while Paramount shares managed to rebound slightly from their earlier lows.

The report, initially brought to light by Axios and referencing multiple sources, has ignited speculation surrounding the future of Paramount. It is believed that controlling shareholder Shari Redstone, who holds Paramount through her company National Amusements, is eager to explore potential partnership opportunities.

Warner Bros. Discovery, formed as a result of the merger between Warner Media and Discovery in 2022, has been diligently working towards cost-cutting initiatives and reducing its debt levels under the leadership of Chief Executive David Zaslav. The alleged meeting between Zaslav and Paramount CEO Bob Bakish on Tuesday in New York has further fueled the rumors of a potential collaboration.

As of now, CNBC has reached out to both Warner Bros. Discovery and Paramount for official statements, but no response has been received at the time of this report.

This breaking news has left investors and industry analysts eagerly awaiting further updates on the possibility of a merger between these two media giants. With no concrete details or specifics released thus far, it remains to be seen how the talks will progress in the coming days.

Stay tuned for more information as this story develops.