Backed by Larry Ellison, offer could reshape the entertainment industry
Paramount Skydance (PARA) is reportedly preparing a formal bid to acquire Warner Bros. Discovery (WBD), with sources suggesting an offer could fall in the range of $22 to $24 per share. The update, first reported by CNBC’s David Faber, comes amid ongoing speculation about consolidation in the media sector.
Although the exact terms remain uncertain, the prospective bid is expected to be heavily weighted toward cash — between 70% and 80% — with significant financial backing from Larry Ellison, Oracle co-founder and father of Paramount Skydance CEO David Ellison. The balance of the purchase price would likely be paid in stock.
Shares of Warner Bros. Discovery rose about 1.5% on Friday, trading near $19 following news of the possible bid. Paramount Skydance shares also gained modestly, reflecting investor optimism about the potential transaction.
If finalized, the deal would combine two of Hollywood’s most influential studios and unite extensive content libraries, sports rights, and global pay TV networks under one umbrella. The move could also preempt Warner Bros. Discovery’s ongoing restructuring plans, which include splitting its international television networks from its streaming and studio operations.
Industry analysts suggest the acquisition would mark a transformative moment for Paramount Skydance, establishing it as a top-tier media powerhouse capable of competing more aggressively with Disney, Netflix, and other streaming giants. For Warner Bros. Discovery, a deal would provide a strategic exit amid mounting debt pressures and evolving market dynamics.
While timing remains unclear, sources indicated the formal bid may arrive later than initially anticipated. Still, with strong financial support and market momentum, Paramount Skydance’s pursuit of Warner Bros. Discovery could accelerate a new wave of consolidation in the entertainment industry.
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