In a bold move signaling further consolidation in the media industry, Paramount Skydance is preparing a majority cash bid to acquire Warner Bros. Discovery (WBD), according to a report by The Wall Street Journal. The bid, backed by the deep-pocketed Ellison family, aims to acquire the entirety of WBD, including its cable networks, movie studio, and streaming platforms. This development comes just weeks after Paramount Global completed its $8.4 billion merger with Skydance Media in August 2025, led by David Ellison, son of Oracle co-founder Larry Ellison.
The proposed acquisition would unite two legacy Hollywood studios—Paramount Pictures and Warner Bros.—along with major television networks like CBS, Nickelodeon, CNN, and HBO, and streaming services Paramount+ and Max. This move is seen as an effort to achieve greater scale in the competitive streaming market, where giants like Netflix and Disney+ dominate. As of June 2025, Paramount+ reported 77.7 million subscribers, while WBD’s streaming division, primarily Max, boasted 125.7 million subscribers, highlighting the potential for a combined entity to bolster its global streaming presence.
The announcement sent WBD shares surging over 30% on September 11, 2025, while Paramount Skydance’s stock rose by approximately 7%. The bid, which has not yet been formally submitted, is strategically timed before WBD’s planned separation of its global TV networks (Discovery Global) from its streaming and studio businesses (Warner Bros.) by mid-2026. By targeting the entire company, Paramount Skydance aims to avoid a potential bidding war for WBD’s studio and streaming assets, which could attract tech giants like Amazon or Apple.
However, the deal faces significant hurdles. A merger of this scale would likely draw scrutiny from the U.S. Department of Justice due to concerns over market concentration and reduced competition in the media sector. While the deal may not require Federal Communications Commission approval, as WBD holds no broadcast licenses, political and regulatory challenges remain, particularly given WBD’s ownership of CNN, a frequent target of political criticism.
David Ellison’s vision for Paramount Skydance emphasizes a tech-forward approach, including streamlining Paramount+ and Pluto TV onto a unified platform and leveraging AI and virtual production to enhance content creation. Acquiring WBD could provide cost synergies and strengthen Paramount’s film and TV portfolio, but the financial and regulatory complexities of such a mega-merger will be closely watched as the media landscape continues to evolve.
