Barely a month after Skydance Media’s $8.4 billion takeover of Paramount Global closed, fresh talk is swirling in Hollywood: Paramount Skydance is weighing a bid for Warner Bros Discovery (WBD).
If the deal goes ahead, it would reshape the global media and entertainment industry, pulling two of Hollywood’s most storied studios – Warner Bros and Paramount – under the same roof.
Reports from the Wall Street Journal suggest Paramount, who is the owner of Network 10, is preparing a majority cash offer for WBD, backed by the Ellison family.
Neither company has confirmed the talks, but the speculation sent WBD shares soaring by almost 30% in late trading.
Why Warner, why now
WBD, led by chief executive David Zaslav, was created in April 2022 through the merger of WarnerMedia and Discovery.
The combined company has struggled under heavy debt and shifting consumer habits, with Zaslav recently announcing plans to split Warner Bros from Discovery’s cable and global television assets.
The studios, franchises and channels at stake cover some of the best-known names in entertainment – Warner Bros’ film division, CNN, HBO, the DC Comics universe, and Paramount’s portfolio of CBS, Channel 5, Comedy Central, MTV and Paramount Pictures.
A merger would unite Superman, South Park, CNN and 60 Minutes under one corporate umbrella.
Warner Bros. Discovery CEO David Zaslav
Ellison’s rapid moves
David Ellison, son of Oracle billionaire Larry Ellison, wasted no time after completing the Skydance-Paramount merger in August.
In quick succession, he secured a $7.7 billion rights deal making Paramount the exclusive US broadcaster of UFC, signed Stranger Things creators the Duffer brothers to an exclusive contract, and struck a film development partnership with Activision for a Call of Duty movie.
Ellison has also put his stamp on Paramount’s news operations. CBS News has been a flashpoint, particularly after its settlement with Donald Trump over a contested 60 Minutes interview with Kamala Harris.
Earlier this week, Paramount appointed Kenneth Weinstein – a conservative policy veteran and Trump’s onetime pick for US ambassador to Japan – as ombudsman at CBS News.
Meanwhile, Ellison is reportedly close to acquiring The Free Press, the online outlet co-founded by Bari Weiss, with Weiss herself tipped for a role at CBS News.
Paramount, A Skydance Corporation CEO David Ellison
Regulatory and political hurdles
While an acquisition of WBD would not require Federal Communications Commission (FCC) approval – WBD doesn’t own broadcast licences – any tie-up would draw scrutiny from the US Department of Justice on antitrust grounds.
Mike Proulx, vice-president at Forrester Research, told The Guardian that such a move would “redefine the streaming landscape” if it materialised.
“This could be good for consumers in the form of cost savings, but it also would reduce marketplace choice,” he noted.
“What’s clear is that as the streaming market matures, it’s looking a whole lot like the OG television industry – all the way back to when there were just a few big networks and studios.”
However, consumer advocacy voices are already warning against consolidation. Robert Weissman, co-president of Public Citizen, told the same publication that any Paramount-WBD merger “should plainly be struck down” on antitrust grounds.
“But there’s grave reason to worry that the Trump administration would rubber-stamp such a merger, giving a pass to a corporate marriage that would advance its ideological agenda,” he said.
Robert Weissman, co-president of Public Citizen
What it means for CNN and CBS
The fate of major news brands could prove politically charged. CNN, owned by WBD, has long been a target of Trump’s criticism.
CBS News, already under scrutiny following its Trump settlement, would sit in the same group if the companies combined.
That intersection of politics, media power, and entertainment brands is likely to intensify the regulatory debate.
The bigger picture
The Paramount–Skydance merger already marked one of the most significant shake-ups in US media in years.
As Mediaweek reported at the time, the deal placed Paramount – home to CBS, Showtime, and Paramount Pictures – under the control of Skydance, a younger but increasingly influential Hollywood studio.
By bringing in Ellison family capital, the merger was pitched as a way to better compete with streaming giants like Netflix and Disney+.
Now, less than a month later, the prospect of adding Warner Bros Discovery raises the stakes even higher.