Weeks after closing its merger with Paramount, David Ellison’s Skydance is again at it.
At this time, The Wall Avenue Journal reported that Ellison, the son of billionaire Larry Ellison, and his Paramount Skydance firm are getting ready a majority money bid for Warner Bros. Discovery.
In keeping with the report, the bid is for the whole firm, together with the cable networks and film studio.
Forward of the Journal’s report, WBD had been planning to separate into two entities: Warner Bros., which can comprise the streaming and studios divisions, and Discovery International, which can embrace the worldwide networks. The break up was deliberate for mid-2026.
WBD’s inventory surged after the report of the deal, climbing greater than 30%, whereas Paramount’s grew round 6%.
Reps for Paramount and WBD didn’t instantly return ADWEEK’s request for remark. The Journal famous {that a} bid hasn’t been submitted, and the deal may disintegrate.
In 2023, Paramount and WBD reportedly additionally held talks a couple of potential merger, with Warner Bros. Discovery CEO David Zaslav assembly with former Paramount International CEO Bob Bakish on the time. Nevertheless, that deal finally by no means got here to fruition.
Skydance’s $8 billion merger with Paramount closed simply final month, with the FCC giving the deal its approval in late July.
So what would this imply for the business?
In keeping with Mike Proulx, vp, analysis director, Forrester, the deal “feels prefer it’s coming from the plot of HBO’s Succession” and has the potential to “redefine the streaming panorama.”
“A brand new streaming service by combining HBO Max with Paramount+ would have the dimensions to raised compete in opposition to Netflix and the unified Disney+ and Hulu library,” Proulx mentioned. “This may very well be good for customers within the type of price financial savings, however it additionally would cut back market selection. What’s clear is that because the streaming market matures, it’s trying an entire lot just like the OG tv business—all the best way again to when there have been just some massive networks and studios.”
