In a major development in the global media and entertainment industry, Paramount Skydance is preparing an Ellison backed bid for Warner Bros. Discovery (WBD). According to reports from the Wall Street Journal and Reuters, the proposed offer is expected to be a majority cash deal that could reshape the future of Hollywood’s biggest studios.
The Wall Street Journal report highlights that Paramount Skydance, which recently completed its own merger with Paramount Global, is now positioning itself to acquire all of Warner Bros. Discovery. This includes its extensive cable TV networks, world renowned Warner Bros. studio, and the popular streaming business, Max. By moving now, the Ellison backed group aims to stay ahead of a planned restructuring at Warner Bros. Discovery, which is reportedly planning to split into two divisions: one focusing on legacy cable television and the other on studios and streaming.
According to Reuters, this strategic timing could also help Paramount Skydance avoid intense competition from tech giants such as Amazon and Apple, which are increasingly showing interest in acquiring major entertainment assets. The report noted that shares of Warner Bros. Discovery surged by as much as 35% after news of the potential bid broke, while Paramount’s stock also saw gains, reflecting strong investor interest in the possibility of consolidation.
The Ellison family, known for its significant investments in media and technology, is backing this high stakes bid. Their financial support could provide Paramount Skydance with a competitive edge in closing such a massive acquisition. Analysts suggest that if successful, the merger would create one of the most powerful entities in global entertainment, combining Paramount’s deep film and TV portfolio with Warner Bros. Discovery’s vast assets.
However, the Wall Street Journal report also points out that regulatory hurdles and antitrust scrutiny may pose significant challenges. With the scale of this deal, watchdog agencies are expected to closely examine its impact on competition in the entertainment and streaming sectors.
This potential merger marks another step in the rapidly evolving entertainment landscape, where traditional studios are increasingly consolidating to compete with digital first giants. Paramount Skydance’s bid for Warner Bros. Discovery reflects not only strategic expansion but also the shifting balance of power in global media.
If completed, the deal would mark one of the biggest acquisitions in Hollywood history, fundamentally reshaping the competitive dynamics of the industry.
