Paramount Skydance Prepares Bid for Warner Bros. Discovery, Potential Industry Shakeup

Paramount Skydance Poised to Bid for Warner Bros. Discovery

Paramount Skydance is actively preparing an all-cash offer for Warner Bros. Discovery (WBD), collaborating with an investment bank as it explores the potential acquisition, according to sources familiar with the matter. While Warner Bros. Discovery had not officially received an offer as of Thursday, an approach could materialize as soon as next week, CNBC’s David Faber reported.

Following initial reports of the impending bid, WBD’s stock surged 28.2% to close at $16.15, marking its strongest single-day gain. Paramount Skydance’s shares also rose approximately 15%. Both companies declined to comment on the developments.

Strategic Context: WBD’s Planned Corporate Split

Warner Bros. Discovery recently announced plans to separate its global TV networks from its streaming and studio businesses, with the split expected to conclude by April 2025. Post-separation, the streaming and studio operations would be rebranded as Warner Bros., while the global TV networks—including TNT and CNN—would operate under Discovery Global.

Industry insiders note that any acquisition prior to this split would necessitate a bid for the entire company, rather than individual segments.

Industry Implications of a Potential Merger

A merger between Paramount Skydance and Warner Bros. Discovery would forge a media powerhouse with an extensive portfolio spanning broadcast and pay TV networks, leading streaming services, and two major film studios. Paramount Skydance owns CBS, pay TV channels such as BET, MTV, and Nickelodeon, and the Paramount+ streaming platform. Its film library includes iconic titles like The Godfather, Top Gun, and Forrest Gump.

Warner Bros. Discovery, formed from the 2022 merger of WarnerMedia and Discovery, holds assets including CNN, TNT, HBO, and HBO Max, along with the Warner Bros. studio, home to franchises like Harry Potter, DC Comics, and The Lord of the Rings.

Both companies have substantial sports broadcasting rights, covering NFL, MLB, college football and basketball, among others. The combined entity would consolidate a significant portion of marquee sports content, a critical driver for traditional and streaming viewership.

Market Trends and Media Consolidation

The media sector continues to grapple with transformation as streaming disrupts traditional pay TV revenue models. While some companies, including Comcast’s NBCUniversal and WBD, have moved toward spinning off pay TV networks, others like Paramount Skydance are pursuing consolidation strategies.

WBD CEO David Zaslav has publicly advocated for industry consolidation, citing the need for scale amid evolving market dynamics. Notably, the regulatory environment has been a key factor; the Federal Communications Commission recently approved the Paramount Skydance merger following compliance commitments and a settlement with former President Donald Trump.

Paramount Skydance’s Recent Developments

Paramount Skydance emerged from an $8 billion merger finalized in August 2025 after regulatory delays. The company is undertaking significant cost-cutting measures, targeting over $2 billion in savings, with ongoing layoffs and a return-to-office mandate for employees starting next year.

Under CEO David Ellison, son of Oracle founder Larry Ellison, the company has made strategic acquisitions, including securing U.S. rights to UFC events beginning in 2026. Larry Ellison’s net worth surpassed $100 billion recently after Oracle’s optimistic growth outlook boosted its stock.

As the media landscape continues to evolve, the potential Paramount Skydance bid for Warner Bros. Discovery signals a possible major consolidation that could reshape the competitive dynamics of entertainment and sports broadcasting.