Paramount Skydance prepares Ellison-backed bid for Warner Bros. Discovery
Reported majority-cash offer would target the entire company as shares surge; Ellison family expected to provide private financing
Paramount Skydance is preparing a majority-cash bid for Warner Bros. Discovery backed by the Ellison family, the Wall Street Journal reported Thursday, a move that sent Warner Bros. Discovery shares sharply higher.
The potential offer would seek to acquire the entire company, including its cable networks and movie studio, the WSJ said, citing people familiar with the matter. Warner Bros. Discovery shares jumped nearly 30% and Paramount’s stock rose about 7% after the report. Paramount Skydance declined to comment and Warner Bros. Discovery did not immediately respond to a Reuters request for comment.
The reported move follows Paramount’s merger with Skydance Media and comes as Paramount Skydance Chief Executive David Ellison seeks to bolster the company’s film slate and streaming ambitions while trimming costs and restructuring Paramount+. Analysts and media executives have said the Ellison family’s deep pockets and willingness to back a deal with personal wealth were major factors in exploring an audacious bid, given Paramount’s heavy debt load and the pressures of the current streaming market.
Warner Bros. Discovery has already announced plans to separate its cable business from its studios and streaming operations as media companies reshape portfolios amid falling linear TV viewership and the growth of streaming. Earlier this month, WBD finance chief Gunnar Wiedenfels told the Bank of America Media, Communications & Entertainment Conference that the company could sell a roughly 20% stake in its studio unit before an eventual spinoff.
The scope of the reported bid — covering cable networks, film studios and streaming assets — intersects with the restructuring WBD has signaled and could complicate any transaction timeline. A sale or takeover of that scale would typically draw regulatory scrutiny and require negotiations over how to handle planned separations and minority-stake sales referenced by WBD executives.
Paramount and other legacy media companies have taken different approaches to cable and linear assets. Paramount Global has said it plans to retain and develop its cable networks, rejecting the view that cable channels are simply "declining linear assets" to be spun off. The strategic choices underline broader industry tensions about how best to extract value from legacy television businesses while investing in streaming and studios.
It remained unclear whether Paramount Skydance would move from preparation to a formal proposal, or what valuation might be sought. The WSJ report did not specify the timetable for any offer. Market moves after the report reflected investor speculation about the possible deal and its implications for both companies and the wider media landscape.
Warner Bros. Discovery’s next public filings and any formal communication from Paramount Skydance or the Ellison family are likely to clarify intentions. Until then, the report represents a high-profile example of consolidation interest in a media sector grappling with debt loads, changing viewer habits and the economics of streaming.
