Paramount Skydance prepares bid to acquire Warner Bros Discovery
Tie-up would combine two of the best-known Hollywood conglomerates
Paramount Skydance is preparing a bid to buy Warner Bros Discovery with funding backed by Oracle’s Larry Ellison, said people familiar with the matter, in a deal that would combine two top media conglomerates.
Paramount, weighed down by debt, would be able to fund the cash element of the deal by tapping billionaire Ellison’s resources, one of the people said.
The tie-up would combine the company behind the Paramount movie studio and CBS News with the owner of HBO, CNN and Warner Bros. However, the people stressed an offer had not been made and might not materialise.
Skydance, which is run by the Oracle founder’s son David Ellison, took over Paramount last month following a protracted merger process.
Paramount Skydance’s market value was $16bn as of Wednesday’s close, while that of Warner Bros Discovery was $31bn. Paramount’s shares closed up 5.9 per cent on Thursday, while Warner Bros leapt 29 per cent.
A person close to Larry Ellison said: “There’s no question of the financial capability of Larry to do a deal like this.” However, the person cautioned Oracle’s co-founder was involved “to the extent that he is a backstop” and stressed this was “David’s deal”.
The Wall Street Journal first reported on Paramount’s potential bid.
A takeover would help both compete against larger entertainment groups such as Netflix and Disney.
Warner Bros had 126mn global streaming subscribers at the end of June, while Paramount’s streaming service had 78mn.
In comparison Netflix had more than 300mn subscribers at the end of 2024 when the company stopped reporting the numbers.
Against that backdrop, David Ellison, 42, is looking to revive the ailing Paramount after years of struggle under its previous ownership.
He spent more than a year pursuing the legendary studio behind films such as The Godfather in a process marked by legal battles, executive upheaval and political controversy.
The $8bn takeover drew scrutiny after Ellison made concessions on newsroom oversight and diversity policies to secure regulatory approval from Donald Trump’s administration.
The move to buy Warner Bros signals Ellison’s broader ambition to cement his place among Hollywood’s power players.
Forrester analyst Mike Proulx said a merger would “redefine the streaming landscape through further consolidation”.
“What’s clear is that as the streaming market matures, it’s looking a whole lot like the [original] television industry — all the way back to when there were just a few big networks and studios,” he said.
Paramount and Warner Bros did not immediately respond to requests for comment.