Shares of Warner Brothers Discovery and Paramount Skydance experienced a notable surge on Thursday, following reports suggesting that Paramount Skydance is considering a bid to acquire its rival studio.
The potential offer encompasses the entirety of Warner Brothers Discovery’s operations, including CNN, HBO, and the film studio responsible for blockbuster franchises like “Barbie” and “Harry Potter.”
This prospective deal signals further consolidation within the U.S. media landscape, which has undergone a dramatic transformation due to the proliferation of streaming services. It also arrives amidst increased scrutiny of U.S. media firms from the administration of President Donald Trump.
Warner Brothers Discovery has declined to issue a statement regarding these reports. Paramount Skydance has yet to respond to requests for comment.
News of the potential acquisition was initially reported by The Wall Street Journal.
Paramount Skydance is helmed by David Ellison, son of Oracle co-founder Larry Ellison, who briefly held the title of world’s wealthiest individual this week.
The news surfaces mere weeks after the completion of Paramount Skydance’s $8 billion merger, which saw David Ellison’s independent film studio, Skydance, acquire Paramount, parent company of CBS News and the popular series “Yellowstone.”
Mr. Ellison is also reportedly finalizing plans to acquire The Free Press, a digital media outlet co-founded by Bari Weiss.
At market close on Thursday, Warner Brothers Discovery shares were up 29%, while Paramount Skydance closed 16% higher.
The Wall Street Journal cautioned that a formal bid has not yet been submitted, and the proposed deal remains subject to potential collapse.
David Ellison entered the film industry after leaving the University of Southern California, establishing himself as a producer on successful films such as “Top Gun: Maverick” and “World War Z.”
His father, Larry Ellison, an ally of President Donald Trump, briefly surpassed Elon Musk as the world’s richest person, with an estimated net worth of $380 billion, according to the Bloomberg Billionaires Index.
The Paramount acquisition has also drawn David Ellison into the political arena.
The deal faced a protracted approval process, fueled by a dispute involving President Trump’s legal challenges against CBS over an interview with Kamala Harris, which he alleged was unfairly edited to favor the Democratic Party.
Paramount ultimately agreed to pay $16 million to resolve the dispute, with the funds earmarked for a future presidential library.
The settlement did not include any admission of wrongdoing or regret.
Democrats have characterized the payment as a “bribe,” an allegation that Paramount has vehemently denied. They have also requested documentation pertaining to the negotiations from the company.
Warner Brothers Discovery was formed through a 2022 merger. Since then, the company has faced challenges related to debt and has implemented significant workforce reductions.
Earlier this year, the company announced plans to restructure its operations, separating its streaming brands from its legacy cable television business.
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