Warner Bros Discovery Shares Jump on Paramount Skydance Buyout Reports

Shares in Warner Bros Discovery surged nearly 30% on Thursday after reports that Paramount Skydance is preparing a takeover bid for the media giant, whose assets include CNN, HBO, and the studios behind Harry Potter and Barbie. Paramount Skydance stock also climbed 16%.

The potential offer, first reported by the Wall Street Journal, has not yet been formally submitted and could still fall apart. Both companies declined to comment.

A deal would mark a major consolidation in the US media industry, which has been reshaped by streaming and is facing increased scrutiny under President Donald Trump’s administration.

Paramount Skydance is led by David Ellison, son of Oracle co-founder Larry Ellison, who briefly overtook Elon Musk this week as the world’s richest man. Skydance recently completed its $8bn (£5.9bn) merger with Paramount, which owns CBS and hit shows such as Yellowstone.

Ellison has built his own Hollywood reputation as a producer on films like Top Gun: Maverick and World War Z. He is also reportedly pursuing the purchase of digital outlet The Free Press, co-founded by journalist Bari Weiss.

The Paramount merger approval process drew political controversy after the company agreed to pay $16m to settle a dispute with Trump over a CBS interview with Kamala Harris. Democrats have called the payment a “bribe” and demanded disclosure of negotiations, which Paramount denies.

As part of regulatory approval, Skydance committed to ending Paramount’s diversity programmes, appointing an ombudsman to review bias complaints, and ensuring programming reflects a “diversity of viewpoints.”

Meanwhile, Warner Bros Discovery, created in a 2022 merger, has been weighed down by debt and job cuts. Earlier this year, it said it planned to split its streaming platforms from its traditional cable TV business.