Paramount Readies An Offer For Warner Bros. Discovery

Paramount Skydance Warner Bros. Discovery? // Logos courtesy of Paramount and WBD

Paramount, A Skydance Corporation (yes, that’s the full name), is reportedly planning to make an offer to acquire all of Warner Bros. Discovery.

The Big Picture: When David Ellison wrapped up the Paramount deal a few weeks ago, he told the press that he and his backers — RedBird Capital and big papa Larry Ellison — were ready for more. A play for WBD would be an even bigger fish compared to Paramount’s market cap… but then again, so was Skydance compared to Paramount Global.

Behind The Scenes: The WSJ reports that Paramount is preparing a majority-cash bid for WBD — backed by the Ellison family and all that fresh Oracle money from Wednesday’s stock pop.

  • The offer would cover the entire studio, potentially complicating WBD CEO David Zaslav’s plan to split the company in two by next April

  • Ellison wants to supercharge Paramount’s streaming reach while bucking industry trends by trying to revitalize cable brands, so a play for everything makes sense.

  • There’s no word yet on what Paramount plans to offer (and the deal could still fall apart), but WBD’s market cap currently sits at $33 billion and carries a bit more in debt.

  • But Wall Street is already foaming at the mouth, with a potential deal sending WBD’s stock soaring by 33% and Paramount’s up by 16%.

The Fine Print: Even if WBD were to accept a bid, there’s no guarantee that a merger of the two storied studios would pass regulatory scrutiny… even with the recent greenlights for Disney–Fox and Amazon–MGM.

Ironically, many analysts and industry watchers believe Zaslav was siphoning off his declining TV assets to make the studio division and HBO Max more attractive for acquisition, with NBCUniversal pegged as a likely suitor.

Coming Soon: With Paramount making an early play for WBD before it officially puts up the “For Sale” sign, a bidding war could soon be in the cards.

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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.

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