In a move that could reshape the landscape of American media, Paramount Skydance is reportedly preparing a massive bid to acquire Warner Bros. Discovery, the conglomerate behind some of the most iconic names in entertainment. The news, first reported by the Wall Street Journal and widely discussed across major outlets like Variety and BBC, has sent shockwaves through the industry, with Warner Bros. Discovery shares soaring nearly 30% on Thursday, September 11, 2025, and Paramount Skydance’s own shares jumping 16% in the wake of the revelations.
The potential acquisition, which would be valued at more than $70 billion when factoring in Warner Bros. Discovery’s substantial debt, comes just weeks after David Ellison’s Skydance Media completed its $8 billion takeover of Paramount Global. The ink is barely dry on that deal, and Ellison’s team is still in the process of laying off upwards of 2,000 employees at the newly merged entity to slash costs, according to Variety. Yet, the younger Ellison, backed by his father Larry Ellison—Oracle co-founder and, as BBC notes, briefly the world’s richest man this week—is already setting his sights on an even bigger prize.
Warner Bros. Discovery is no small fish. The company owns the legendary Warner Brothers studios, the HBO Max streaming service, and cable networks like Discovery, TNT, and CNN. It’s also the studio behind cultural juggernauts like Barbie and the Harry Potter franchise. But the company has struggled since its formation in a 2022 merger, weighed down by debt and forced to make significant job cuts. Earlier this year, CEO David Zaslav announced plans to split the business by April 2026—dividing its streaming and studios from its more traditional cable television operations, a move designed to increase the value of its high-growth assets by carving off the declining TV arm.
According to The New York Post, Zaslav met with bankers at Goldman Sachs during the week of September 8-12, 2025, to gauge interest from other media and tech giants, including Amazon, Apple, and Netflix. His goal is to drive Warner Bros. Discovery’s stock price up to $40 a share—it closed just above $16 on September 11, 2025, with a market value of $40 billion. If he can’t achieve that price, Zaslav reportedly plans to use any appreciation in stock value to acquire more content, keeping Warner Bros. Discovery in the race for streaming supremacy.
But why is Ellison moving now, rather than waiting for the split to be completed? As Variety explains, striking before the separation allows Paramount Skydance to preempt a potential bidding war for the most attractive assets—namely, the streaming and studios business, which includes HBO Max. Industry analysts suggest that after the split, the standalone Warner Bros. would be a highly sought-after target, with potential buyers ranging from Netflix to Amazon, Apple, Comcast, and Sony. Wells Fargo media analyst Steven Cahall described the future standalone Warner Bros. as “the only large IP asset for sale at a time when most studios/streamers have big aspirations.”
Yet, acquiring the entire Warner Bros. Discovery comes with baggage—not least, its debt-heavy TV networks. Kenneth Leon, director of industry and equity research at CFRA Research, told Variety that “the high debt leverage of WBD is an impediment to a high bid for WBD’s shares,” and suggested that even if Paramount Skydance wins the deal, it may only be interested in the streaming and studios components, not the traditional cable networks.
The potential for cost synergies is substantial. MoffettNathanson analyst Robert Fishman pointed out that combining Paramount Skydance’s TV business with Warner Bros. Discovery’s could lead to material savings—think layoffs and the merging of news operations like CBS News with CNN. Fishman also highlighted the long-standing partnership between CBS and Turner for the NCAA’s March Madness Final Four as a potential area for further collaboration.
But the road ahead is far from smooth. Regulatory approval is a significant hurdle. The Trump administration, which took office after the 2024 election, has signaled a lighter touch on mergers compared to the previous Biden administration, whose regulators were known for a tougher stance on antitrust issues. This shift has emboldened media executives like Zaslav, who recently expressed optimism that Trump’s second term “may offer a pace of change and an opportunity for consolidation that may be quite different” and could “provide a real positive and accelerated impact on this industry that’s needed,” according to Variety.
Still, not everyone is on board. Senator Elizabeth Warren (D-Massachusetts) has already voiced strong opposition to the merger, declaring on X (formerly Twitter) that such a tie-up “must be blocked as a dangerous concentration of power.” She also raised concerns about the approval process for the recent Skydance-Paramount merger, citing a $16 million payment from Paramount to settle a lawsuit with former President Trump over a CBS News interview with Kamala Harris. Democrats have labeled the payment a “bribe”—an accusation Paramount denies—and have demanded further documentation about the negotiations. The government ultimately approved the deal, but only after Skydance committed to ensuring its programming would “embody a diversity of viewpoints,” ending Paramount’s diversity initiatives, and appointing an ombudsman to review complaints of bias.
The politics don’t end there. The merger talks have placed David Ellison, once known mainly for producing blockbusters like Top Gun: Maverick and World War Z, squarely in the political spotlight. His father Larry Ellison, a longtime ally of Donald Trump, is now vying with Elon Musk for the title of world’s richest man, thanks to Oracle’s booming AI business. President Trump even floated Larry Ellison’s name as a potential buyer for TikTok earlier this year, according to BBC.
Meanwhile, the media landscape continues to shift. Paramount recently announced a five-year deal to air South Park on its streaming network, poaching the show from HBO. The Late Show with Stephen Colbert is set to end in May 2026, a move that has sparked questions about political motivations—questions Paramount denies. David Ellison is also reportedly close to acquiring The Free Press, a digital media outlet co-founded by Bari Weiss, further expanding his media footprint.
For now, both Warner Bros. Discovery and Paramount Skydance have declined to comment on the potential deal. As the industry watches and waits, the outcome of this high-stakes chess match could determine not just who controls some of Hollywood’s most valuable assets, but also the shape of the media business for years to come. With regulatory, financial, and political challenges looming, one thing is certain: the next chapter in the story of American media consolidation is just getting started.
