Paramount Skydance preps bid for Warner Bros Discovery - reports

David Ellison’s Paramount Skydance is preparing an offer to buy Warner Bros Discovery (WBD), according to US reports.

The move, first reported by the Wall Street Journal, could come as soon as next week according to the US-based outlet. The news has already sent WBD shares soaring a record 28% to more than $16 apiece, while Paramount Skydance closed 15% up at $17.50.

Paramount Skydance only debuted on the market in August following a year-long merger process, but the Ellison-led firm was quick to unveil its senior team and has already struck a $7bn deal for UFC rights and partnered with Stranger Things creators the Duffer brothers. It is also looking to cut roles to save $2bn in costs.

An acquisition of WBD would be its biggest move by far, however, creating a giant US-based entity that would include the entirety of the David Zaslav-led company’s operations.

WBD - created when Warner Media and Discovery combined in 2022 - had been planning to split its network business from its streaming and studio businesses, a move expected to conclude in April 2026.

A Paramount Skydance acquisition - expected to be an all-cash deal funded via Oracle founder Larry Ellison, according to US reports - would create a behemoth, with the company valued at north of $16.5bn. WBD is valued at around $40bn.

A combined company would house brands ranging from The Godfather, Top Gun and Yellowstone on the Paramount Skydance side to Harry Potter, The Sopranos and The Lord of the Rings on the WBD side.

Paramount Skydance owns a raft of TV networks including US broadcaster CBS, MTV and BET, as well as being the owner of 5 in the UK and Network 10 in Australia.

It also houses streamer Paramount+, which has almost 80 million subscribers, as well as a vast studio network that produces Star Trek, South Park and Taylor Sheridan’s series such as the Yellowstone franchise and Landman.

WBD, meanwhile, operates global streamer HBO Max - with almost 130 million subscribers globally - and an array of networks such as CNN, TNT and a portfolio of Discovery-branded channels.

Its studio operations are equally large, producing the new Harry Potter TV series and with offices around the world.

US consolidation has been on the cards over the past year as incumbent studio businesses look to compete with more nascent streamers, following the decline in linear viewing and cable subscriptions in the US.

Paramount and WBD did not immediately respond to the news.