Paramount Skydance Corp., the studio acquired in August by independent filmmaker David Ellison, is reportedly preparing a major bid for Warner Bros. Discovery Inc. According to insiders, the company is working closely with an investment bank to structure the offer.
However, people familiar with the matter clarified that no direct talks with Warner Bros. have yet taken place.
Warner Bros. earlier announced plans (June 2025) to split its operations into two distinct divisions — one focusing on cable TV networks and the other on streaming and studios.
The proposed Paramount bid, which is expected to be mostly cash, would target the entire company, as reported by The Wall Street Journal.
The offer is being supported by the influential Ellison family. David Ellison’s father, Larry Ellison, co-founder of Oracle Corp. and the world’s second-richest person with a net worth of $383 billion, is backing the deal financially, according to reports.
Paramount declined to comment on the matter, while Warner Bros. did not immediately respond to requests for comment.
Shares of Warner Bros. jumped 29% to $16.15 in New York trading, boosting its market value to $40 billion. Including net debt, its enterprise value now stands at $71 billion. Over the past 12 months, Warner Bros. generated $38.4 billion in revenue.
Meanwhile, Paramount shares rose 16% to $17.46, with a market cap of over $19 billion. Bloomberg data suggests it carries net debt of $11.6 billion, with annual sales totaling $28.8 billion.
According to people close to the matter, Warner Bros. CEO David Zaslav believes the company could secure a higher premium for its streaming and studios division once separated from its struggling cable network assets. For Paramount’s Ellison, the challenge will be convincing Zaslav that an early acquisition is more beneficial than waiting.
If successful, the Paramount-Warner Bros. deal would reduce the number of legacy Hollywood studios from five to four. This would represent the biggest consolidation since Disney acquired Fox’s entertainment business for $71 billion in 2019.
The merger would bring together two powerhouses:
Paramount: known for Mission: Impossible, The Godfather, and Yellowstone.
Warner Bros.: home to Harry Potter, Batman, Casablanca, and HBO’s The Sopranos.
The combined entity would control two giant studio lots in Southern California and an unparalleled collection of blockbuster films and shows.
Major U.S. media companies like Warner Bros. and Comcast (NBCUniversal) are restructuring their operations with streaming at the core. This shift is driven by the decline in pay-TV subscribers, falling ad revenue, and stagnant theatre attendance.
Despite the pivot, profitability in streaming remains elusive. Companies are under investor pressure to cut costs, leading to:
Production cuts
Mass layoffs (thousands of jobs lost)
Delays from strikes that halted production for months in recent years
Comcast, one of the biggest U.S. cable-TV and broadband providers, announced plans to spin off networks like MSNBC, USA, and CNBC. The newly formed Versant Media Group is expected to launch by the end of 2025.
The potential Paramount Skydance bid for Warner Bros. Discovery could reshape Hollywood’s entertainment industry. With David Ellison and his father Larry Ellison providing strategic and financial firepower, the deal could merge two of the most iconic studios in film and television history.
While David Zaslav weighs whether Warner Bros. could fetch a higher valuation post-restructuring, this move highlights the growing urgency of consolidation in the face of streaming wars, declining traditional media revenues, and investor pressure.
If successful, the acquisition would be a landmark transaction, echoing Disney’s takeover of Fox and potentially setting the stage for a new era in global entertainment.