Paramount Skydance, backed by the Ellison family, is reportedly preparing a majority cash bid to acquire Warner Bros. Discovery (WBD), which saw a 29.10% stock increase, according to The Wall Street Journal, citing sources familiar with the matter.
The bid targets the entire company, encompassing its cable networks and movie studio.
Warner announced last year it would restructure into two divisions: one for its legacy cable-television business and another for streaming and studios.
This move is ambitious, as Warner Bros.’ market capitalization of approximately $31 billion (based on the latest data showing $31.05 billion) is over twice that of Paramount Skydance. No formal bid has been submitted, and the plan could still collapse.
By targeting Warner before its planned division split, Paramount Skydance aims to avoid a potential bidding war for the studio and streaming unit, which could attract tech giants like Amazon or Apple.
A successful deal would unite two iconic Hollywood studios and merge the parent companies of HBO Max and Paramount+. Warner’s portfolio includes “Barbie,” DC Comics, Harry Potter, “The White Lotus,” and cable networks like CNN, TBS, and TNT.
The deal’s scale could trigger significant antitrust and regulatory scrutiny.Skydance, led by David Ellison, son of billionaire Larry Ellison, recently completed its merger with Paramount, which owns Nickelodeon, MTV, Comedy Central, and its film studio.