Paramount Skydance Initiates Potential Takeover Bid for Warner Bros. Discovery
Paramount Skydance’s CEO David Ellison has engaged an investment bank to prepare a bid for Warner Bros. Discovery (WBD), according to sources familiar with the matter who spoke anonymously due to the confidential nature of the discussions. As of Thursday, Warner Bros. Discovery had not formally received an offer, but its shares surged nearly 30%, marking its best trading day on record.
Neither Paramount nor Warner Bros. Discovery representatives commented on the developments.
Combining Vast Entertainment Libraries
A successful acquisition would significantly expand Paramount Skydance’s portfolio, integrating Warner Bros. Discovery’s extensive suite of intellectual properties and media rights. WBD, which announced plans in June to split into two separate companies, possesses high-value franchises such as DC superheroes, Game of Thrones, Harry Potter, and the Lord of the Rings. It also holds classic animation properties including Scooby-Doo, Looney Tunes, and Tom and Jerry.
Paramount’s existing assets include major franchises like Star Trek, Transformers, SpongeBob SquarePants, Teenage Mutant Ninja Turtles, and Mission: Impossible. Additionally, Paramount has recently secured rights to produce a Call of Duty film and distribute Legendary’s Street Fighter adaptation, expanding its reach into video game-based content.
Streaming and Box Office Strength
Warner Bros. Discovery’s HBO Max streaming service boasts over 125 million subscribers as of Q2 2025, outnumbering Paramount+’s approximately 77 million users. Both studios rank among the top global box office performers, with Warner Bros. Discovery second and Paramount fifth last year, according to Comscore data.
Enhancing Sports Media Holdings
Following the Paramount-Skydance merger, Ellison secured a $7.7 billion, seven-year agreement making Paramount the exclusive U.S. broadcaster for the UFC, transitioning its events from pay-per-view to streaming on Paramount+ and CBS. Sports media rights are highly competitive and infrequently available, with major properties like Formula 1 and Major League Baseball already tied up through 2028.
Warner Bros. Discovery holds broadcast rights to the National Hockey League, Major League Baseball, NCAA March Madness, the French Open, and NASCAR, assets that could significantly enhance Paramount Skydance’s sports portfolio.
Strategic Implications
Industry analysts note that acquiring Warner Bros. Discovery would unlock the intrinsic value of its content portfolio, which has been constrained by WBD’s heavy debt load. This potential consolidation could create a formidable entertainment and sports media conglomerate capable of challenging dominant players such as Disney’s ESPN.
FinOracleAI — Market View
The news of Paramount Skydance preparing a bid for Warner Bros. Discovery introduces significant market speculation, reflected in WBD’s 30% stock surge. The deal could transform Paramount into a leading content and sports media powerhouse, leveraging WBD’s extensive franchises and streaming subscribers.
However, complexities remain due to WBD’s planned corporate split and substantial debt, posing integration and financial risks. Market participants should monitor official bid announcements, regulatory scrutiny, and any shifts in subscriber growth or sports rights acquisitions.
Impact: positive
