Warner Bros. Discovery Shares Jump After Report Paramount Skydance Prepares Takeover Bid
Wall Street Journal report that Paramount Skydance is preparing an offer for the entire Warner Bros. Discovery business sends stocks sharply higher and stokes consolidation concerns in the US media sector
Shares of Warner Bros. Discovery surged after reports that Paramount Skydance is preparing a bid to buy the rival studio, a move that would combine some of the largest names in US television, news and film under a single owner.
The reported offer, first published by the Wall Street Journal, would target the entire Warner Bros. Discovery business, which includes CNN, HBO and the film studio behind recent hits such as Barbie and the Harry Potter franchise. The news sent Warner Bros. Discovery stock sharply higher, with the company closing up 29% on Thursday; shares of the newly merged Paramount Skydance closed up 16% the same day.
Warner Bros. Discovery and Paramount Skydance did not comment when approached. The Journal reported that no formal bid had been submitted and that the reported plan could yet collapse.
Paramount Skydance is led by David Ellison, whose independent studio Skydance recently completed an approximately $8 billion deal to acquire Paramount. David Ellison has a track record as a Hollywood producer on films such as Top Gun: Maverick and World War Z. His father, Oracle co-founder Larry Ellison, briefly reclaimed the title of the world’s richest person this week, according to the Bloomberg Billionaires Index, and is reported to be an ally of President Donald Trump.
If consummated, the deal would mark another wave of consolidation in the US media industry, which has been reshaped by the rise of streaming services and shifting advertising and subscription revenue models. The potential transaction comes as US media firms face increased scrutiny from the administration of President Trump, an added layer of uncertainty for any large merger.
Warner Bros. Discovery was formed by a 2022 merger and has since faced heavy debt loads, cost-cutting measures and workforce reductions. Earlier this year the company announced plans to split its streaming operations from its more traditional cable television businesses.
The recent Paramount Skydance takeover of Paramount itself drew political attention during its approval process. That deal involved a contentious dispute after President Trump raised legal claims regarding an edited interview with Vice President Kamala Harris; Paramount settled a related matter by agreeing to pay $16 million to a future presidential library. Critics, including some congressional Democrats, characterized the payment as improper, an allegation the company denied.
Industry observers cautioned that even a preliminary plan faces many hurdles. Regulatory approval for a combination of two major media companies could be protracted, and the Wall Street Journal noted the possibility that the reported bid might not proceed.
The reports come amid other moves by David Ellison and affiliates, including media acquisitions under consideration elsewhere. The broader market reaction on Thursday reflected investor interest in potential consolidation and the perceived strategic value of Warner Bros. Discovery’s assets in an evolving media landscape.