On September 11, 2025, the media landscape was jolted by reports that Paramount Skydance, the recently merged entertainment powerhouse led by David Ellison, is preparing a bid to acquire Warner Bros. Discovery (WBD). According to The Wall Street Journal, Paramount’s owners are eyeing a deal that, if completed, would mark the largest merger of two legacy Hollywood studios ever seen. The news sent shockwaves through Wall Street, with shares of WBD soaring 29% to reach a three-year high and Paramount’s stock jumping more than 15% in a single day, as reported by CNN and NBC News.
The bid, which sources say would be a majority cash offer backed by the deep-pocketed Ellison family, comes just weeks after Paramount finalized its own $8 billion merger with Skydance Media. That deal, approved by the Trump administration after a protracted legal battle, installed David Ellison—son of Oracle co-founder and billionaire Larry Ellison—as Paramount’s new CEO. The younger Ellison wasted no time in signaling his ambitions: not only did he steer Paramount through a turbulent merger, but he also set his sights on expanding the company’s reach through further acquisitions, including a reported offer to buy digital publisher The Free Press for up to $200 million.
According to Fox Business, if the Paramount Skydance bid succeeds, it would unite two of Hollywood’s most storied studios—Paramount and Warner Bros.—along with their vast libraries, news networks, and streaming services. The combined company would bring together HBO, CNN, and Warner Bros. studio with CBS, Showtime, Nickelodeon, MTV, BET, Comedy Central, and more. The scale of such a merger is difficult to overstate: it would reshape the entertainment and news industries, putting some of the most influential brands under a single corporate roof.
The timing of Paramount’s interest is particularly striking. Warner Bros. Discovery announced in June 2025 that it planned to split itself into two companies by early 2026: Discovery Global, which would include CNN and other TV networks, and Warner Bros., encompassing HBO, HBO Max, and the famed Warner Bros. studio. This strategic move, as described by The New York Times, was seen by many analysts as a precursor to further dealmaking, possibly setting the stage for a bidding war among tech and media giants. Indeed, other potential suitors for WBD—including Comcast, Amazon, and Netflix—have already been named by industry observers.
Jessica Reif Ehrlich, senior media and entertainment analyst at Bank of America Securities, told CNN, “It’s obvious the media industry needs to consolidate.” She added, “If Paramount is making an actual bid for WBD, they’re not the only ones who are going to be bidding, in our view.” The sentiment was echoed across Wall Street, where the prospect of a major shake-up in the media sector has been met with both excitement and caution.
But the road to any deal is far from straightforward. WBD, formed in 2022 from a blockbuster merger, is currently valued at $41 billion and saddled with $35 billion in debt. The company’s CEO, David Zaslav, confirmed at a recent investor conference that the planned split is “on track,” and has repeatedly emphasized the need for industry consolidation. Yet, as The New York Times noted, Zaslav may have ambitions of his own—potentially positioning the post-split Warner Bros. as an acquirer, rather than a target, in the next wave of media mergers.
The potential merger also faces significant regulatory hurdles. The Trump administration, which has taken a keen interest in media consolidation since Inauguration Day, would need to approve any deal. The recent Paramount-Skydance merger only cleared the Federal Communications Commission after Ellison agreed to appoint an ombudsman for CBS News and committed not to revive the company’s diversity, equity, and inclusion program. The idea of combining CNN—long a target of President Trump’s ire—with CBS News under one corporate umbrella could prove contentious. Still, as The New York Times pointed out, Comcast has successfully managed both MSNBC and NBC News for years, suggesting that such arrangements are not unprecedented.
Paramount’s CEO, David Ellison, has proven himself a shrewd and ambitious operator. Since taking the helm, he has licensed rights from the Ultimate Fighting Championship, secured a long-term deal with the creators of “South Park,” and aggressively pursued new digital media assets. His father, Larry Ellison, briefly became the world’s wealthiest person on September 10, 2025, after shares in Oracle surged—an indication of the financial firepower behind the Paramount Skydance bid.
WBD’s assets are formidable. The company owns or controls some of the most valuable intellectual property in entertainment, including Harry Potter, Batman, Bugs Bunny, and franchises like “Game of Thrones,” “The Lord of the Rings,” “Friends,” and “The Conjuring.” Its HBO Max streaming service, now profitable and available worldwide, boasts hits such as “The Pitt,” “The White Lotus,” “The Last of Us,” and “The Gilded Age.” Recent box office successes, including “A Minecraft Movie,” have helped Warner Bros. rebound from a tough year, propelling it to the top of the domestic market share rankings for 2025, according to Comscore.
Yet, even a merged Paramount-WBD entity would face stiff competition in the streaming wars. While the combined company would control two of the top five streaming services in the U.S.—HBO Max and Paramount+—they would still be dwarfed by Netflix, which commands more than 300 million subscribers worldwide. Some analysts believe the WBD split is designed to entice bids from tech titans like Amazon and Apple, both eager to expand their entertainment footprints. Others question whether these technology giants are willing to invest billions in content as they focus on artificial intelligence and other priorities.
John Malone, WBD’s board emeritus chair and a mentor to Zaslav, has reportedly discussed further media consolidation with Ellison, telling The New York Times he would “bet on that guy.” Despite the mounting speculation, representatives for both Paramount and WBD have declined to comment on the reports, and no formal bid has yet been submitted. As Fox Business noted, “the plans could still fall apart.”
For now, the industry watches and waits. With WBD’s planned split on the horizon, and multiple potential suitors circling, the stage is set for a dramatic showdown that could redefine the future of Hollywood and the global media business. Whether Paramount Skydance will emerge victorious—or if a new player will swoop in—remains to be seen. But one thing is clear: the race to control the next era of entertainment has never been more intense.
