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| David Ellison |
Larry and David Ellison's Paramount Skydance has emerged victorious in a heated bidding war, securing a definitive agreement to acquire Warner Bros. Discovery in a deal valued at approximately $110 billion (with Paramount paying $31 per share in cash).
The merger, announced Friday after Warner Bros. deemed Paramount's revised bid superior and Netflix withdrew, would create one of the world's largest media empires—if it gains regulatory and shareholder approval, expected potentially in Q3 2026.
The combination would unite Paramount (including CBS, Paramount+, and franchises like Mission: Impossible and Star Trek) with Warner Bros. Discovery's assets, adding HBO, CNN, HBO Max (with nearly 130 million subscribers), thousands of iconic films, and a vast cable network portfolio.
The companies described the merger as creating a "Hollywood champion" that would boost consumer choice and opportunities for creative talent and labor.
Key assets the Ellisons would control include:
- Streaming: HBO Max (fourth-largest streamer) and Paramount+ (fifth-largest, with 79 million subscribers). It's unclear if they will merge platforms or keep them separate with bundle options, similar to Disney's approach with Disney+ and Hulu. Experts suggest separate platforms with package deals to gain market share without immediate price hikes, especially to attract international subscribers where Paramount+ is weaker.
- News: CNN (with over 3,000 employees, including anchors like Anderson Cooper, Kaitlan Collins, and Jake Tapper) joining CBS. This has raised concerns among CNN staff about editorial independence, given the Ellisons' ties to Trump and their prior appointment of Bari Weiss to infuse more conservative voices at CBS News. Reports indicate fears of potential influence or changes.
- Movies and Studios: A massive film library rivaling Disney's, combining Warner Bros.' Harry Potter, Batman, The Lord of the Rings, The Wizard of Oz, and Gone With the Wind with Paramount classics like The Godfather and Chinatown. The deal adds Warner Bros.' 110-acre Burbank lot (with over 30 soundstages) to Paramount's Hollywood facilities. Industry observers warn this consolidation could reduce major buyers for talent, potentially impacting production quality, though short-term theatrical releases may remain unchanged.
- Cable TV and Programming: A huge lineup including Paramount's MTV, Comedy Central, Nickelodeon, and BET; plus Warner's Discovery networks (HGTV, Food Network, TLC), Adult Swim, Cartoon Network, TBS, TNT, and Turner Classic Movies. HBO classics like Game of Thrones, The Sopranos, Sex and the City, and Veep would also join.
- Sports: Enhanced rights combining CBS's NFL, NCAA March Madness, and Masters coverage with TNT's MLB, NHL, NASCAR, additional NCAA events, US Soccer, US Open, and Wimbledon tennis.
Employees at both companies are bracing for potential layoffs, with reports of anxiety and hopes for voluntary buyouts to avoid deeper cuts. Paramount did not immediately respond to inquiries.
The Ellisons, with Larry (Oracle co-founder and TikTok US investor) providing major financial backing and David leading as CEO, transformed Skydance from a smaller player into a Hollywood powerhouse after its 2025 Paramount merger. They outmaneuvered Netflix, which had an earlier $27.75-per-share deal for WBD's studio and streaming assets but declined to match the higher offer amid regulatory and competitive concerns.
The deal faces scrutiny, including from state attorneys general.