Paramount Skydance is preparing a takeover bid for Warner Bros. Discovery, according to multiple reports. CNBC confirmed that the recently merged entertainment company has hired an investment bank to prepare an offer for the entirety of WBD. The bid would come approximately two months after Skydance completed its $8.4 billion acquisition of Paramount Global in August 2025.

According to Deadline, the proposed offer would be majority cash and backed by the Ellison family fortune. Larry Ellison, Oracle co-founder and one of the world's wealthiest individuals with a net worth of $370 billion, is the father of David Ellison, who leads the combined Paramount Skydance entity. Warner Bros. Discovery stock surged 29% on Thursday following the news, while Paramount shares jumped 15%.

The timing of the potential bid comes ahead of WBD's planned corporate split scheduled for April 2026. Warner Bros. Discovery CEO David Zaslav announced that the company would separate its streaming and studio operations from its global television networks business. However, the Paramount offer would target the entire company before this separation occurs.

Why This Matters

The potential acquisition represents a major consolidation move in the struggling traditional media sector. CNN reports that analysts view this as the beginning of a broader bidding war for Warner Bros. Discovery assets. Bank of America Securities analyst Jessica Reif Ehrlich stated that "the media industry needs to consolidate" and predicted other bidders would emerge.

The combined entity would create a streaming powerhouse with approximately 200 million subscribers worldwide. Paramount+ currently serves 77.7 million subscribers, while HBO Max reaches 125.7 million users as of June 2025. This scale would position the merged company as a top-five global streaming player, competing directly with Netflix's 300 million subscribers and Disney's combined 183 million across Disney+ and Hulu.

Financial benefits include potential synergies of $3 billion to $5 billion annually and combined television advertising revenue of approximately $20 billion. The deal would also unite vast intellectual property portfolios, combining Paramount's Star Trek and Mission Impossible franchises with Warner's DC Comics, Harry Potter, and Lord of the Rings properties.

Industry Implications

The merger reflects broader challenges facing traditional media companies in the streaming era. Variety notes that rising content costs and regulatory pressures are driving industry consolidation. Netflix spent $18 billion on content in 2025, creating an "inflationary spiral" that pressures smaller competitors.

According to PwC's Global Entertainment & Media Outlook, the entertainment industry generated $2.9 trillion in revenue during 2024, growing 5.5% year-over-year. However, analysts expect continued consolidation as companies seek scale advantages in content creation and distribution.

The potential deal faces regulatory scrutiny, with Senator Elizabeth Warren calling for the merger to be blocked as "a dangerous concentration of power." The combination would create a horizontal merger that typically draws Justice Department attention due to potential competition reduction. However, analysts note that WBD does not hold broadcast licenses, which could simplify regulatory approval compared to traditional broadcast network mergers.

Further Reading

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