Paramount Skydance Acquisition Bid Sends Warner Bros. Discovery Stock Soaring 36%

Warner Bros. Discovery stock surged dramatically following a major acquisition report. Shares jumped 36 percent after news broke of a potential bid from Paramount Skydance. The deal could reshape the entire media landscape.

According to The Wall Street Journal, Paramount Skydance is preparing a mostly cash offer. The bid is reportedly backed by the Ellison family. David Ellison recently finalized his purchase of Paramount Global.

Warner Bros. Discovery Stock Reacts to Major Deal Speculation

WBD shares reached over $17 during trading. They had opened the session under $13. This represents a significant single-day gain for shareholders.

The potential acquisition would cover all of Warner Bros. Discovery. This comes as CEO David Zaslav plans to split the company. That separation is now expected in April 2026.

The merger would combine major Hollywood studios and networks. It would bring together Paramount’s CBS with Warner’s HBO and cable channels. Such a deal would face serious regulatory scrutiny.

Ellison Family Backs Potential Media Mega-Merger

David Ellison leads the Paramount Skydance effort. His father Larry Ellison provides financial backing. The Oracle founder recently briefly became the world’s richest person.

The Ellison family has substantial resources to fund the deal. Larry Ellison’s net worth increased by about $100 billion recently. Oracle’s stock performance fueled this massive wealth jump.

Warner Bros. Discovery formed through a previous merger in April 2022. The company combined Discovery, Inc. with AT&T’s WarnerMedia. It has been working to reduce significant debt from that transaction.

The potential Paramount Skydance acquisition represents a major shift in media consolidation. Warner Bros. Discovery stock performance shows investor excitement about this possibility. This deal could create one of Hollywood’s most powerful studios.

Thought you’d like to know

Who is backing the Warner Bros. Discovery acquisition bid?

The bid is backed by the Ellison family. David Ellison leads Paramount Skydance after recently acquiring Paramount Global. His father Larry Ellison, Oracle’s founder, provides financial support.

How much did Warner Bros. Discovery stock increase?

The stock jumped nearly 36 percent following the acquisition report. Shares reached over $17 during trading after opening below $13. This represents one of the stock’s largest single-day gains.

What would a Paramount-Warner merger include?

The merger would combine Paramount’s assets including CBS with Warner’s HBO and studio operations. It would create a media giant with broadcast, cable, and streaming platforms. The deal would also merge major film studios and content libraries.

When did Warner Bros. Discovery form as a company?

The company formed in April 2022 through a merger between Discovery, Inc. and AT&T’s WarnerMedia. The combination created significant debt that management has been reducing. The company was planning to split into two separate entities by 2026.

What regulatory challenges might this deal face?

The merger would likely face significant regulatory scrutiny regarding market concentration. The combination of broadcast networks and major studios would attract antitrust attention. Regulatory approval would be uncertain and potentially lengthy.