Paramount Skydance weighs $30 bn move for Warner Bros Discovery takeover

Paramount Skydance, backed by billionaire Larry Ellison, is weighing a $30 billion bid for Warner Bros Discovery, a move that could unite Hollywood giants and reshape global media landscape

Paramount Skydance is preparing a bid to acquire Warner Bros Discovery, news agency Reuters reported. If successful, the move could bring together two of Hollywood’s most iconic studios and reshape the global entertainment industry.

 

The bid would be supported by the Ellison family. Skydance is led by David Ellison, whose father, Larry Ellison, co-founder of Oracle and one of the world’s wealthiest individuals, is expected to provide financial backing.

 

Just weeks ago, Skydance completed its $8.4 billion purchase of Paramount Global. Adding Warner Bros Discovery would expand its reach even further, uniting DC Comics superheroes like Superman with Nickelodeon’s SpongeBob SquarePants, alongside major franchises including The Matrix and Star Trek.

 

Following reports of the potential bid, Warner Bros Discovery shares surged nearly 30 per cent, while Paramount rose 15 per cent, the news report said.

 

What’s at stake

 

Warner Bros Discovery has been reorganising its business, aiming to split its declining cable television arm from its studio and streaming operations. Skydance, however, is reportedly interested in acquiring all of Warner Bros Discovery’s assets — including Warner Bros Studios, HBO and CNN — in a largely cash deal.

 

If successful, the merger would also bring together the HBO Max and Paramount+ streaming services, creating a stronger competitor to Netflix, Disney+, and Comcast’s Peacock.

 

Regulatory and political hurdles

 

Any such deal would face scrutiny from US regulators. Legal experts said the Department of Justice would likely review whether it could reduce competition in film, television, and streaming, Reuters reported.

 

The news report quoted Andre Barlow, a Washington-based antitrust attorney, as saying: “The DOJ will want to investigate whether the merger could lead to higher prices for consumers, reduce bargaining power for creators and diminish content diversity."

 

However, Barlow noted that the Trump administration’s antitrust division may take a more lenient stance compared to the Biden-era regulators.

 

Ellison’s financial muscle

 

Larry Ellison, 81, holds a 41 per cent stake in Oracle and is the world’s second-richest person, with a net worth exceeding $360 billion, according to Forbes. His family has been central to financing Skydance’s growth.

 

Paramount Skydance’s market value stood at $16.4 billion before the report, while Warner Bros Discovery was valued at about $30 billion. Despite cutting debt in recent years, Warner Bros still carries around $30 billion in net debt.

 

If completed, the merger would reduce the number of independent major studios, potentially increasing market concentration in theatrical releases, streaming, and television licensing. Analysts say it would also give the combined company more leverage with advertisers and cable providers, the news report said.

 

The proposed deal reflects a broader trend of consolidation in media, as traditional entertainment companies seek scale to compete with technology giants like Apple and Amazon, which are investing heavily in streaming content and sports rights.

 

David Ellison has already signalled his ambition to rebuild Paramount’s film portfolio, strengthen streaming operations, and cut costs. Adding Warner Bros Discovery would accelerate that strategy, cementing the Ellison family’s role as a major force in Hollywood.