MW A likely bid by Paramount for Warner Bros. Discovery means the big media roll-up is underway

By Lukas I. Alpert

A merger of two of the largest TV and film companies may just be the beginning of a major reformation of the media world

David Ellison just completed a takeover of Paramount and is reportedly preparing a bid to acquire Warner Bros. Discovery.

With the ink barely dry on a deal to take over Paramount, David Ellison is reportedly setting his sights on transforming the entire media landscape.

The newly minted company Paramount Skydance Corp. (PSKY) is reportedly preparing a bid to acquire the entirety of Warner Bros. Discovery Inc. (WBD), including its cable properties and film business, according to The Wall Street Journal.

If a deal were to go through, it would mark a radical shift of power in Hollywood and signal that a long-expected media roll-up is finally underway.

In June, Warner Bros. Discovery announced plans to spin off its legacy cable-television business, including channels like CNN, MTV and Nickelodeon, from its film studio and its streaming service, HBO Max. Earlier this year, Comcast's Corp.'s $(CMCSA)$ NBCUniversal announced a similar plan to spin off its cable channels.

Many analysts have speculated that a buyer could eventually emerge to roll up the declining cable companies, as they still deliver plenty of cash.

That Paramount is preparing to bid for the entirety of Warner Bros. Discovery came as somewhat of a surprise to media watchers. WBD's stock shot up 29% Thursday, to its highest close since Aug. 4, 2022. Paramount shares jumped 15.6%, to their highest close since May 3, 2023.

No dollar figure has emerged in regards to how much Paramount would be willing to offer, but WBD has a market capitalization of over $31 billion.

The Journal reported that Ellison is planning to make a mostly cash offer and will not involve his private-equity partners Redbird Capital, who helped with his $8 billion bid to buy Paramount. Ellison's bid would be backed by money from his family; Ellison's father is Oracle Corp. $(ORCL)$ co-founder Larry Ellison, one of the richest people in the world.

Benchmark Equity Research noted that a WBD spinoff - expected to be completed by next year - would create tax problems for an immediate buyout, which could provide impetus to get a deal done quickly.

"Although there are other companies that would have keen interest in [Warner Bros. Discovery], most evidently Sony $(SONY)$ (JP:6758), we would be surprised if any suitor arose to challenge a David Ellison bid given Paramount Skydance's privileged access to capital and likely superior synergy profile," Benchmark wrote in a note to clients.

The research firm also said it didn't expect any major regulatory issues for such a deal, as Ellison appears to have good ties with the Trump administration and there is only one network, CBS, involved.

The Paramount-Skydance merger drew criticism for the lengths the two sides appeared willing to go to secure approval from the Trump administration. Paramount agreed to settle a defamation lawsuit brought by President Trump against CBS that many legal experts considered baseless, leading to accusations that the payment amounted to a bribe.

Ellison has also signaled that he intends to make considerable changes at CBS News, perhaps making it more conservative in focus.

-Lukas I. Alpert

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September 11, 2025 17:05 ET (21:05 GMT)

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