Paramount Skydance is working with an investment bank as it gears up to make a formal offer for Warner Bros. Discovery (WBD), according to people familiar with the matter.
As of Thursday, WBD had not received an official proposal, but a bid could arrive as early as next week, CNBC’s David Faber reported. News of the potential takeover first broke in The Wall Street Journal.
The report sent WBD shares soaring 28% on Thursday, closing at $16.15 — the best single-day performance in the company’s history. Paramount Skydance stock also rallied, finishing the day up around 15%. Both companies declined to comment.
Details of the Bid
The Journal reported that Paramount Skydance is preparing an all-cash offer for the entirety of Warner Bros. Discovery. The timing comes as WBD is in the process of separating its global television networks from its streaming and studio operations.
At an investor conference earlier this week, WBD CEO David Zaslav said the split should be completed by April. The new structure would see streaming and studios rebranded as Warner Bros., while the TV networks division — home to CNN, TNT and other pay-TV brands — would be renamed Discovery Global.
Executives had previously indicated that once the split was finalised, each business would be free to pursue deals independently. For now, however, any takeover bid would need to cover the entire company.
Media Consolidation on the Horizon
A merger between Paramount Skydance and Warner Bros. Discovery would create one of the world’s largest media companies, with an extensive portfolio of pay-TV channels, two leading film studios, and major sports rights under one roof.
Paramount Skydance owns CBS, Paramount+, BET, MTV and Nickelodeon, along with a film studio responsible for classics such as The Godfather, Top Gun and Forrest Gump. WBD, formed by the 2022 merger of WarnerMedia and Discovery, controls HBO, HBO Max, CNN, TNT and Warner Bros. Studios — home to the Harry Potter, DC Comics and Lord of the Rings franchises.
Both companies also hold major sports rights, including the NFL, MLB, and college football and basketball. Industry observers have long predicted consolidation, with Zaslav himself repeatedly arguing that scale is essential in today’s shifting media landscape.
Shifting Strategies Across the Industry
While consolidation remains a likely path for some companies, others are pursuing separation. Comcast, for example, recently announced plans to spin off NBCUniversal’s pay-TV networks, including CNBC and MSNBC, into a separate publicly traded firm. WBD followed suit with its own separation plan.
Paramount Skydance itself was created through an $8 billion merger finalised last year after a lengthy regulatory review. The Federal Communications Commission approved the deal weeks after Paramount settled a $16 million lawsuit with Donald Trump over the editing of a 60 Minutes interview with Kamala Harris.
At the time, FCC Chairman Brendan Carr welcomed Skydance’s pledge to revitalise CBS, once one of the most influential U.S. broadcasters. Since then, the company has pursued aggressive cost-cutting, targeting more than $2 billion in savings, with layoffs and a return-to-office mandate for employees.
Backed by RedBird Capital Partners and led by David Ellison — son of Oracle founder Larry Ellison — Paramount Skydance has been expanding its sports portfolio, including acquiring U.S. rights to UFC events from 2026.
Meanwhile, Larry Ellison himself saw his net worth jump by more than $100 billion on Wednesday, after Oracle’s upbeat growth forecasts sent its shares surging.