Paramount Skydance Reportedly Plans Majority‐Cash Bid For Warner Bros Discovery

Paramount Skydance Corp. (PSKY), following the merger of Paramount Global and Skydance Media, is reportedly preparing a majority cash bid for Warner Bros. Discovery (WBD), backed by the Ellison family.

According to a report by The Wall Street Journal, the proposed bid would cover Warner's entire business, including its movie studio and cable networks. 

Following the report, Paramount Skydance stock surged over 8% on Thursday afternoon while WBD stock jumped nearly 26%. On Stocktwits, retail sentiment around paramount stock remained in 'bearish' territory amid 'low' message volume levels.

Paramount is led by David Ellison, the son of billionaire Larry Ellison. Paramount recently completed its merger with Skydance in August, combining its legacy broadcasting, cable channels, and film production operations.

Soon after the merger, the combined company acquired the U.S. rights of TKO Group Holdings Inc.'s (TKO) UFC for $7.7 billion in a seven-year deal, becoming the exclusive home of all UFC events in the U.S.

Meanwhile, last year, Warner announced a plan to divide its operations into two divisions, one focusing on traditional cable TV and another on streaming and studios. In July, the company unveiled the official names and leadership structures for its two soon-to-be independent companies, which are scheduled to emerge in mid-2026. 

'Streaming & Studios' will become 'Warner Bros', encompassing flagship assets such as Warner Bros. Television, Warner Bros. Motion Picture Group, HBO, HBO Max, DC Studios, and the company's iconic film and TV libraries. 

Meanwhile, 'Global Networks' will take on the name 'Discovery Global', consolidating international television and digital brands, including CNN, Discovery, TNT Sports, Bleacher Report, and Discovery+, across more than 200 countries and territories. 

Paramount Skydance stock has gained over 39% since its merger in August. 

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