According to multiple reports, Warner Bros. Discovery and Paramount are in talks of a potential merger. As first reported by Axios, sources say the CEOs of the two companies met over lunch on Tuesday, Dec. 19, at Paramount’s New York City headquarters for several hours, where they discussed the possible deal. The merger between the two media giants would mean combining their streaming services, Max and Paramount+, to compete better with Netflix and Disney+.

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Warner Bros.’ Max currently has 95 million subscribers, and Paramount streaming service Paramount+ has 63 million subscribers. A merger between the two media conglomerates would give them a better chance to compete with the more popular streaming services Disney+, with 105 million subscribers, and Netflix, with 247 million subscribers.

Media and entertainment technology analyst Paul Erickson said that the potential merger between the two media giants is further evidence of economic challenges the entertainment and streaming services are facing.

“The mere reality of two major players being driven by mutual challenges and competitive forces to entertain a merger is an indication that collaborations, mergers and acquisitions at all levels may be needed to survive today’s market pressures,” Erickson said.

Paramount would bring its TV assets like CBS and Nickelodeon to join WBD’s operations, which include CNN and HBO. On the movie front, Warner Bros. Pictures has the DC Universe and Lord of the Ring film franchises. Paramount’s properties include Mission Impossible and Star Trek.

The deal could mean WBD buying Paramount or its parent company, National Amusements. Sources said both options are on the table.