Paramount Skydance is drafting a cash offer to take over Warner Bros Discovery.
It’s the latest potential fusion of some of America’s largest media brands. For consumers, it could change how they get news, watch television and movies, and stream live events.
And, in the media industry, it could mark another consolidation among the giants.
Skydance — the film studio behind the Top Gun and Mission: Impossible franchises — recently closed an $8 billion deal to purchase Paramount’s assets.
The company is run by David Ellison, the son of billionaire Larry Ellison, who briefly became the world’s richest man.
Paramount — the television company that runs CBS, Nickelodeon, MTV, and the Paramount+ streaming service — initially agreed to the deal in July 2024.
Now, the new company wants even more assets under its wing. The offer would take over all of Warner Bro’s properties, including the cable networks and movie studio, the Wall Street Journal reported.
Warner Bros Discovery owns the DC Comics franchise, HBO (and its streaming service), CNN, TNT, HGTV, and the Food Network.
The pact would put all of Warner Bros Discovery’s assets, including HBO – the studio behind Euphoria – into Paramount Skydance’s hands
The deal is not yet official and would require federal regulatory approval to be completed.
Media watchers have been predicting that major production companies would have to start joining forces.
For years, consumers have been trading in their cable programming for separate streaming services. But in the past year, Netflix, Paramount+, Peacock, and Apple TV have all raised their prices on consumers.
In conversations with the Daily Mail, subscribers have increasingly threatened to cancel their monthly streaming plans as they become more expensive.
Mergers could bring more of the creative properties under the same umbrella, making the studio projects less expensive for consumers.
Larger production companies could also help counter new players: entertainment studios are dealing with fresh competition from social media streamers like YouTube, TikTok, and Instagram.
The changing dynamics have forced media executives to rethink their businesses.
On Wednesday, David Zaslav, the top boss at Warner Bros Discovery, announced that his company will attempt to split into two: a global TV network and another streaming and production studio.
Skydance, the studio that produced Tom Cruise’s Top Gun: Maverick, has been snapping up talent for its new business
Warner Bros Discovery’s stock price ballooned after The Journal’s report
The divorce would be finalized in April, he said. It’s unclear how a potential deal with Paramount Skydance would impact the breakup.
After the announcement, rumors flooded the internet that major tech players like Apple or Amazon would swoop in to purchase some of the split’s leftovers.
Paramount Skydance was the first player to move.
If submitted and approved, it would be a huge leap for Paramount Skydance.
Its combined company is worth an estimated $18 billion. Warner Bros Discovery is currently valued at around $33 billion.
Wall Street loved the aggressive move.
After The Journal’s reporting, shares for Warner Bros jumped nearly 27 percent, while Paramount Skydance is up more than ten percent.
The reported deal is another sign that the marriage of Paramount and Skydance is off to a fast start.
Last week, reports began circulating that CBS was close to naming Bari Weiss, a former New York Times writer, as its top editor.
Yesterday, the company announced it was hiring Dane Glasgow as the chief product officer. He was pilfered from Meta, the company that runs Facebook, WhatsApp, and Instagram.
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