Paramount Skydance is preparing a majority cash bid for Warner Bros. Discovery, a move that would combine two of Hollywood’s most iconic studios while reshaping the media landscape, according to a report in The Wall Street Journal. The offer, backed by the Ellison family, is expected to target Warner Bros. Discovery in its entirety.
That includes the company’s legacy cable networks such as CNN, TBS and TNT, along with its film studio and popular franchises like Barbie, Harry Potter and DC Comics. Insiders told The Wall Street Journal the bid has not yet been submitted, and the plan could still unravel before reaching the negotiating table.
If finalized, the acquisition would represent one of the largest bets in entertainment history. Warner Bros. Discovery carries a market capitalization of nearly $33 billion, more than twice the size of Paramount Skydance. Yet, timing could prove to be the critical factor.
Warner recently announced it would restructure into two separate operating divisions. One for traditional television and another for its streaming and studios. By moving now, Paramount Skydance aims to prevent competitors, including tech giants Amazon and Apple, from entering the bidding once Warner’s restructuring is complete.
Warner Bros. Discovery shares jumped almost 35% Wednesday afternoon following news of the potential offer. Paramount Skydance shares rose nearly 6%, signaling optimism among investors about the potential consolidation.
The deal would bring together HBO Max and Paramount+, two streaming services still fighting for market share in an increasingly competitive space. With subscriber growth slowing across the industry, scale has become a necessity.
Pairing Warner’s deep library of content with Paramount’s established channels such as Nickelodeon, MTV and Comedy Central could strengthen both services’ positions against Netflix, Disney+ and other rivals.
However, questions remain about how regulators would view the merger. The size and scope of a Paramount Skydance–Warner Bros. Discovery combination would almost certainly trigger antitrust scrutiny. The push comes shortly after Skydance, led by David Ellison, completed its merger with Paramount.
Ellison, son of Oracle co-founder Larry Ellison, has quickly emerged as a major player in Hollywood’s ongoing consolidation. Bringing Warner Bros. Discovery into the fold would accelerate his influence across both traditional media and digital platforms.
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