Paramount Skydance Still Hasn’t Submitted Buyout Bid for Warner Bros. Discovery, Source Says

Paramount Skydance has yet to formally approach Warner Bros. Discovery with a buyout bid, according to people familiar with the matter. The effort, led by Paramount Skydance CEO David Ellison with funding from Larry Ellison, was anticipated to come as an all-cash offer that could spark merger talks valued at more than $50 billion. But the bid remains unsubmitted, and insiders say the Ellison group is still sorting out how to proceed in a way that avoids a hostile confrontation or prematurely signaling its hand to potential rivals.

The central hurdle for the would-be acquirer is timing and tact. Sources say the Ellisons and their RedBird Capital partners are weighing how best to approach Warner Bros. Discovery Chief Executive Officer David Zaslav, whom they fear could use a formal approach to fan the flames of a bidding war or press for more favorable terms. Some discussions within Skydance have contemplated engaging a third party with influence over Zaslav, including John Malone, a longtime mentor and a major Liberty Media shareholder who helped orchestrate the Discovery-WarnerMedia merger that birthed WBD. It’s unclear whether Malone would press Zaslav to entertain Ellison’s proposal, especially given Malone’s own stake in the company and his history of transactional leverage in media.

Meanwhile, people familiar with the matter say official outreach to Zaslav could come later this week or well down the road, depending on how the Ellison team gauges whether other bidders may surface. Zaslav is known for seeking maximum value and has shown a willingness to wait for stronger offers, according to several sources close to the situation. He has publicly signaled that he expects strategic options, including the possibility of selling assets separately as he continues to reorganize Warner Bros. Discovery into more streamlined units.

Zaslav, who has been navigating WBD’s complex debt load stemming from the 2022 merger that created the company, has been cited by multiple sources as actively evaluating bids and partnerships for the streaming, studio, and cable arms. He has reportedly heard interest in at least the streaming and studio halves from major tech and media players, including Netflix and Amazon. Someone briefed on the matter said Zaslav privately dismissed a CNBC report that Ellison’s bid appeared to be in the $22 to $24 per-share range as too low, arguing that he would attract additional bidders and a higher valuation if he waited.

Zaslav has hired Goldman Sachs to help position WBD for sale or more expansive strategic options, teams that have previously aided large-scale media consolidations. His approach to the business has included cost cuts and strategic divestitures, along with a push to monetize streaming assets more effectively. The company’s past decisions — from shelving controversial projects to rebranding and then rebranding again around its streaming service — have been part of a broader effort to stabilize cash flow while pursuing growth through franchises and international expansion.

Paramount Skydance’s move comes after its $8 billion Paramount acquisition and the Ellison-backed push to build a broader media empire. The Ellisons reportedly possess substantial liquidity, and their approach to WBD would be a test of whether a cash bid could realistically compete with Zaslav’s strategy for unlocking value through unit-specific sales and ongoing content creation.

Analysts have noted that WBD trades near a historically low price, with some forecasting a higher price tag should a robust bidding contest emerge. The market has watched for signals that new bidders could enter the fray, a development that could affect the company’s debt strategy, content investments, and streaming economics. In interviews and briefings, participants stressed that a formal bid would likely trigger a formal due-diligence window and unwind several strategic plans that Zaslav has been setting for the next phase of the company’s evolution.

As of now, there is no confirmed offer on the table, and the Ellison group has not disclosed a timetable for moving forward. The decision to delay or accelerate a bid will hinge on how many credible bidders materialize and how Zaslav responds to any engagement that could shape the future of Warner Bros. Discovery. The situation remains fluid, with market participants watching closely for a possible breakthrough or a continuation of Zaslav’s strategy to maximize value through a potential mix of core asset sales, partnerships, and ongoing content investment.