The Ellison family, fresh from closing the Skydance Media and Paramount deal, is now eyeing Warner Bros Discovery. Sources say they plan a cash offer that would cover the entire company, including its cable networks and film studio. No exact price has been disclosed yet, and the bid could still fall apart.
Warner Bros Discovery shares jumped more than 35 percent after the report, while Paramount stock rose over 5 percent. Warner Bros Discovery is valued at about $39.8 billion, and Paramount sits at roughly $18 billion.
How the Skydance‑Paramount Deal Was Structured
In August, David Ellison’s Skydance Media completed an $8 billion merger with Paramount. The deal first gave Ellison control of National Amusements, the entity that holds 77.4 percent of Paramount’s Class A common stock and about 9.5 percent of its total equity. After that, Skydance merged with Paramount’s Hollywood assets, which include CBS, Paramount Pictures, Comedy Central, MTV, BET Media Group, Nickelodeon, Paramount+ and Pluto TV.
The transaction allocated $2.4 billion to Shari Redstone, $4.5 billion to non‑National Amusements shareholders, and $1.5 billion in new capital to reduce debt and strengthen the balance sheet. The Ellison family contributed roughly $6 billion, while private‑equity firm RedBird Capital Partners supplied the remaining funds.
Warner Bros Discovery’s Planned Split
Warner Bros Discovery plans to separate its TV networks from its studios and streaming businesses by mid 2026. The new Warner Bros unit will be led by CEO David Zaslav and will house the studios, streaming services, Warner Bros Television Group, Warner Bros Motion Picture Group, DC Studios, HBO, HBO Max, Warner Bros Games, tours, retail and experiences, as well as production facilities in Burbank and Leavesden.
The second unit, Discovery Global, will be overseen by chief financial officer Gunnar Wiedenfels. It will contain CNN, TNT Sports in the United States, Discovery, top free‑to‑air channels across Europe, Discovery+, and Bleacher Report. Discovery Global will also keep a 20 percent stake in Warner Bros and the bulk of the combined company’s $35.6 billion gross debt.
Paramount’s Cost‑Saving Push
At the same time, Paramount is seeking more than $2 billion in cost savings. The company is reviewing up to 3,000 jobs, examining its real‑estate portfolio, and upgrading its technology. Plans include using virtual production studios and AI tools to localize content, and moving Paramount+, Pluto TV and BET+ onto a shared backend next year.
These moves show a clear trend of consolidation in the entertainment industry. If the Ellison family’s bid succeeds, it could reshape the media landscape and create a powerhouse that spans film, television, streaming and sports.
Industry watchers say the outcome will depend on regulatory approval, financing details and the willingness of Warner Bros Discovery shareholders to accept the offer.
Stay tuned for updates as the story develops.
Source: The Wrap
