Paramount Skydance eyes Warner Bros. Discovery takeover with potential bid up to $24 a share

Paramount Skydance is pursuing a takeover bid for Warner Bros. Discovery that could value the company at as much as $24 a share, according to CNBC. The proposed offer would be largely cash, with 70% to 80% paid in cash backed by Oracle co-founder Larry Ellison, father of Paramount Skydance chief executive officer David Ellison, and the remainder in stock. CNBC's David Faber cautioned that the figures are speculative and that a formal offer may come later than initially expected. The report also noted that Paramount Skydance is weighing a bid in a range of roughly $22 to $24 per share. Meanwhile, Warner Bros. Discovery stock traded in the red at the outset of the day, but rose after the CNBC report; by around 11 a.m. Eastern Time, the shares were up about 2%. Paramount Skydance stock edged higher as well.

The potential bid would represent a multibillion-dollar premium to Warner Bros. Discovery’s current level, which has hovered around the high teens to around $19 a share in recent sessions. The development comes as Warner Bros. Discovery has signaled it may restructure its operations and could split its global TV networks division from its streaming and film assets next year, a move that has drawn interest from private equity firms and rival studios. The CNBC report follows The Post’s coverage that CEO David Zaslav has pushed for a bidding war to maximize value for the company he leads.

Analysts say the possibility of a high-stakes contest over Warner Bros. Discovery underscores mounting pressure on legacy media players as cord-cutting accelerates and streaming growth moderates. If a deal advances, Paramount Skydance would press into a portfolio that already blends Paramount Pictures, CBS, MTV, Nickelodeon and a broad sports-rights footprint through Paramount Global, with Ellison-backed Skydance providing a rapid expansion vehicle. The combination would also create a behemoth with two major studios and one of the world’s largest bundles of pay-TV networks, potentially altering competition for film, television, and streaming assets.

Paramount Skydance’s approach comes months after the two companies completed an $8 billion merger that gave David Ellison control of a broader Hollywood presence. Ellison’s involvement, along with backing from Ellison’s close associate, has intensified market speculation about what assets could be up for grabs if a deal proceeds. Oracle co-founder Larry Ellison’s financial support would be a significant enabler for a cash-heavy approach in a sector where debt and financing pressures loom large for leveraged combinations.

Warner Bros. Discovery has been weighing strategic options as it contends with debt attributed to the 2022 merger and challenges in monetizing its Max streaming service to rival Netflix. The landscape for major media consolidations remains fluid, with executives and bankers reportedly exploring interest from tech giants such as Amazon, Apple and Netflix as potential participants in a larger deal. Regulators would review any combination for antitrust concerns, and officials from the Federal Communications Commission and the Justice Department would need to sign off before such a merger could close.

Industry observers note that a Paramount Skydance bid, if pursued, would intensify the battle for streaming supremacy, premium content, and distribution leverage across networks and platforms. A deal could prompt renewed discussions about asset divestitures or partnerships as companies seek to streamline operations and maximize shareholder value in a rapidly evolving media economy. Neither Paramount Skydance nor Warner Bros. Discovery has publicly commented on the report.