Paramount Skydance Eyes $22-$24 Per Share Bid for Warner Bros. Discovery
Paramount Skydance is reportedly preparing a significant offer to acquire Warner Bros. Discovery (WBD), with sources indicating the bid could range between $22 and $24 per share. This potential move could reshape the media landscape by consolidating major pay TV networks, sports rights, and film studios under one umbrella. According to CNBC’s David Faber, who cited unnamed sources, the proposed offer consists of approximately 70% to 80% cash, partially backed by Larry Ellison, Oracle’s co-founder and father of Paramount Skydance CEO David Ellison. The remainder of the consideration would likely be paid in stock. However, Faber emphasized that the price range is speculative and the offer might arrive later than previously anticipated. Following the news, Warner Bros. Discovery shares increased by about 1.5%, trading near $19 per share. This uptick reflects investor interest amid the potential acquisition.Context: Warner Bros. Discovery’s Strategic Shift
Warner Bros. Discovery recently announced plans to separate its global television networks business from its streaming operations and film studios. This strategic split aims to streamline operations but also creates uncertainty around the company’s future structure, potentially making it a more attractive acquisition target. If Paramount Skydance proceeds with its bid, it could preempt the planned separation and form a media conglomerate with extensive content libraries and distribution platforms, intensifying competition in the industry.The involvement of Larry Ellison as a financial backer adds significant weight to the potential transaction. Ellison’s backing could provide Paramount Skydance with the liquidity necessary to make a compelling cash offer, complementing the stock component and enhancing the bid’s attractiveness.
“The proposed offer could combine substantial cash backing with stock, reflecting a strategic approach to acquiring Warner Bros. Discovery,” CNBC’s David Faber reported. While details remain fluid, this development underscores ongoing consolidation trends within the media and entertainment sectors, as companies seek scale to compete with streaming giants and evolving consumer preferences.
