Warner Bros. Market Capitalization is approximately $29 billion, Paramount is valued at approximately $10 billion.

Film company Warner Bros. and Paramount have begun merger talks, Variety reports.

According to sources, on December 19, the head of Warner Bros. David Zaslav and Paramount chief Bob Bakish met to discuss a possible deal. Zaslav also met with Shari Redstone, the head of National Amusements Inc., which owns a controlling stake in Paramount Global.

Warner Bros. Market Capitalization is approximately $29 billion, Paramount is valued at approximately $10 billion.

In the event of a merger between Warner Bros. will be able to use its international network to promote Paramount’s franchises, and Paramount’s children’s films and animated series could, in turn, prove to be an important asset for Warner Bros.’ streaming business.

Both companies declined to comment officially on the merger talks. Sources indicated that discussions about the deal are only at the initial level.