Paramount Skydance is reportedly preparing a bid to acquire Warner Bros Discovery, potentially reshaping the entertainment industry.
The bid would be backed by the Ellison family, including Skydance CEO David Ellison and his father, Oracle co-founder Larry Ellison, according to the Wall Street Journal. No formal offer has been submitted yet, and plans could still change, News.Az reports, citing Reuters.
If completed, the deal would bring together some of Hollywood’s most recognizable brands, including DC Comics superheroes like Superman, Nickelodeon's SpongeBob SquarePants, science-fiction franchises such as The Matrix and Star Trek, and major news networks CBS News and CNN.
“This deal is the Hollywood equivalent of a sequel no one expected but everyone sort of saw coming,” said eMarketer analyst Jeremy Goldman.
Shares of Warner Bros Discovery surged as much as 30% after news of the potential bid, while Paramount’s stock jumped 15%. Both companies declined to comment.
Warner Bros Discovery has been restructuring its media business, planning to separate its declining cable television operations from its studio and streaming units. Skydance, however, is seeking to acquire all of Warner Bros Discovery’s media assets in a mostly cash deal, including Warner Bros studios, HBO, and CNN.
“For WBD shareholders, a cash-rich exit is far more appealing than waiting around for Zaslav’s restructuring magic to (maybe) pay off,” Goldman added, referring to CEO David Zaslav’s plan to split cable from the company’s other operations.
