Paramount Skydance is preparing a potential bid for Warner Bros Discovery, according to a source familiar with the matter, in what could be one of Hollywood’s most significant mergers. The move, first reported by the Wall Street Journal, would bring together two legendary studios and reshape the entertainment industry.
The bid is expected to be backed by the powerful Ellison family, including Skydance chief David Ellison and his father, Oracle co-founder and billionaire Larry Ellison. It comes only weeks after Skydance’s $8.4 billion acquisition of Paramount Global, underscoring the family’s growing influence in Hollywood.
If completed, the deal would unite iconic brands under one umbrella: DC Comics superheroes like Superman, Nickelodeon hits such as SpongeBob SquarePants, sci-fi franchises including The Matrix and Star Trek, and major news outlets CBS News and CNN. Analysts described the move as a “sequel no one expected but everyone saw coming.”
While no formal offer has yet been submitted, reports of the possible takeover sent Warner Bros Discovery shares surging by 30%, while Paramount stock rose 15%. Both companies declined to comment.
Skydance is reportedly aiming to acquire all of Warner Bros Discovery’s assets—including Warner Bros studios, HBO, and CNN—through a largely cash-funded deal. This comes as WBD CEO David Zaslav pushes ahead with restructuring efforts, separating its declining cable TV business from streaming and studio operations.
Industry experts believe the Ellisons’ financial strength and political ties, including Larry Ellison’s long-standing friendship with President Donald Trump, will be key to overcoming both regulatory and antitrust hurdles. Legal analysts warn that the Department of Justice will likely examine whether such a merger could drive up consumer prices, reduce content diversity, or weaken bargaining power for creators.
If approved, the merger would create a stronger competitor to Netflix, Disney, and Comcast, while consolidating Hollywood further as traditional media companies face mounting pressure from tech giants like Apple and Amazon in the streaming wars.
Warner Bros Discovery, valued at about $30 billion before the news, still carries around $30 billion in net debt, though it has pledged significant reductions. By comparison, Paramount Skydance was valued at $16.4 billion before the potential bid surfaced. Analysts say the Ellisons’ vast resources—Larry Ellison’s fortune exceeds $360 billion—make the ambitious deal financially “doable.”
The bid, if successful, would accelerate Skydance’s strategy of strengthening its film portfolio and boosting the struggling Paramount+ streaming platform, further consolidating the entertainment landscape.
