WASHINGTON (dpa-AFX) - Paramount Skydance is reportedly working with an investment bank on a potential takeover bid for Warner Bros. Discovery. While no formal offer has been made yet, a proposal could arrive as early as next week, CNBC reported.
The news sent shares of WBD soaring more than 28 percent on Thursday to close at $16.15 the company's best trading day ever. Paramount Skydance stock also jumped 15% following the Wall Street Journal's initial report on the planned bid. Both companies declined to comment.
The offer, expected to be all-cash, would target the entirety of WBD. The media giant is in the process of separating its global TV networks from its streaming and studio operations, with CEO David Zaslav signaling the split could be complete by April. The restructured entities would be known as Warner Bros. and Discovery Global.
A merger between the two companies would create one of the most powerful players in global media, combining WBD's HBO, CNN, TNT, and Warner Bros. studios home to 'Harry Potter,' DC Comics, and 'The Lord of the Rings' with Paramount Skydance's CBS, Paramount+, MTV, Nickelodeon, and film hits such as 'Top Gun' and 'The Godfather.' Both companies also control an extensive portfolio of U.S. sports rights, from the NFL to major college athletics.
The bid comes amid sweeping industry shifts as streaming continues to erode traditional pay TV models. While executives like Zaslav have long argued consolidation is necessary, other companies, including Comcast and WBD itself, have opted for structural separations.
If successful, the merger would mark another dramatic step for Paramount Skydance, led by David Ellison and backed by RedBird Capital, just months after completing its $8 billion merger and securing regulatory approval in August.
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