The news: Warner Bros. Discovery (WBD) shares jumped more than 30% Thursday after The Wall Street Journal reported that Paramount Skydance is preparing a majority-cash takeover bid.

• The proposed offer would include WBD’s full slate of video assets—studios, streaming, and TV networks—rather than waiting for the company’s planned 2026 split into Warner Bros. (studios and streaming) and Discovery Global (networks).
• The proposed split would leave Discovery Global carrying most of WBD’s $35.6 billion debt load while retaining a 20% stake in Warner Bros.
• The potential deal is backed by the Ellison family. Larry Ellison and his son David, who recently steered Skydance’s $8 billion acquisition of Paramount Global, have already committed $6 billion in equity.
• That earlier deal handed Skydance control of CBS, Paramount Pictures, Nickelodeon, BET, MTV, Pluto TV, and Paramount+. It came alongside an aggressive cost-cutting plan to save $2 billion, including up to 3,000 job reductions.

WBD’s current market value of $18.07 billion nearly mirrors Paramount Skydance’s $18.12 billion, illustrating how consolidation has reshaped media power structures.

Why it matters:

• Industry shift: Streaming continues to chip away at pay TV, forcing legacy players like WBD and Comcast to spin off linear assets while looking for scale through mergers.
• Franchise firepower: A combined company would house some of the strongest global IP—DC, Harry Potter, HBO, and Paramount’s library—creating a competitor capable of challenging Disney and Netflix.
• Investor sentiment: WBD stock surged 33% on the news, while Paramount Skydance rose 8%, signaling market enthusiasm for consolidation after years of punishing debt and streaming losses.
• Regulatory hurdles: With the DOJ and FTC scrutinizing media and tech, antitrust review is inevitable. However, regulators may struggle to argue against consolidation in a shrinking linear TV market already in decline.

Our take: This deal is the Hollywood sequel no one asked for but many expected. Paramount Skydance would get WBD’s crown jewels without waiting for a complex split, while WBD investors gain an attractive cash exit instead of hoping David Zaslav’s restructuring eventually pays off.

The Ellisons are betting that sheer scale, deep IP, and strong financial backing can overcome the structural decline of traditional TV. It’s an audacious gamble—but also one that reflects the realities of today’s entertainment economy.

If the takeover clears regulatory review, Paramount Skydance would cement its position as a global entertainment powerhouse and WBD would finally escape its debt maze. Whether cost savings and scale can deliver sustainable growth in a streaming-first world remains uncertain—but for now, investors appear ready to buy the vision.