Paramount Skydance Drafts Cash Offer to Acquire Warner Bros. Discovery, Report Says
Proposed takeover would combine major cable networks, film studios and streaming services and faces likely regulatory review
Paramount Skydance is preparing a cash bid to acquire Warner Bros. Discovery, The Wall Street Journal reported Thursday, a move that would combine two of the largest U.S. media organizations and reshape the landscape for cable, streaming and live-event distribution.
The proposed offer, still not official, would bring Warner Bros. Discovery’s portfolio — including HBO and its streaming service, the DC Comics franchise, CNN, TNT, HGTV and the Food Network — under the control of Paramount Skydance. The report said the transaction would require federal regulatory approval and could prompt intense review by antitrust authorities.
Paramount Skydance is the combined entity formed after Skydance closed an $8 billion deal to acquire Paramount’s assets, which include CBS, Nickelodeon, MTV and the Paramount+ streaming service. Skydance is led by David Ellison, son of billionaire Larry Ellison, and is known for producing films such as Top Gun: Maverick and Mission: Impossible – Fallout.
According to the Journal’s reporting, the move would represent a substantial expansion for Paramount Skydance. Market valuations cited in reporting put Paramount Skydance at roughly $18 billion, while Warner Bros. Discovery is valued at about $33 billion. Shares of Warner Bros. Discovery rose sharply after the Journal published the report, jumping nearly 27 percent, while Paramount Skydance shares climbed more than 10 percent.
The companies have not announced a formal agreement. Any transaction would be subject to negotiation and the approval of Warner Bros. Discovery’s board, shareholders and federal regulators. Industry observers note that regulators have scrutinized major media and technology mergers closely in recent years, citing concerns about competition in distribution, advertising markets and news reach.
Paramount Skydance’s appetite for expansion has been evident since its acquisition of Paramount’s assets and in recent hires. The company announced this week that Dane Glasgow, formerly a product executive at Meta Platforms, would join as chief product officer, a move signaling an emphasis on streaming product and digital distribution.
A combination of the two companies would concentrate an array of broadcast and cable networks, premium scripted content, sports and news outlets and two major streaming services under a single corporate umbrella. Executives and analysts say such consolidation can lead to changes in how programming is packaged, priced and distributed, although the specific effects would depend on the structure of any deal and regulatory conditions imposed.
Warner Bros. Discovery’s holdings include award-winning scripted programming produced for HBO, a broad catalog of theatrical films and franchises, and news operations such as CNN. Paramount Skydance’s recent growth has focused on bolstering its content pipeline and streaming reach through Paramount+ and its legacy broadcast and cable networks.
If pursued, the transaction would follow a trend of consolidation in the media industry as companies seek scale to compete with streaming platforms and digital advertising rivals. Any definitive proposal, timeline or terms have not been made public, and both companies declined to comment beyond regulatory filings and standard corporate disclosures.
The Wall Street Journal was the first to report the drafting of a takeover bid. The situation remains fluid; further developments, filings or statements from the companies or regulators could emerge as talks progress or if a formal offer is submitted.