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Shares of Warner Bros. Discovery (WBD) soared over 30% on Thursday following reports that Paramount Skydance is preparing to launch a takeover bid for the media giant. The news, first reported by The Wall Street Journal, signals a potential game-changing consolidation in the entertainment industry.
According to sources familiar with the matter, Paramount Skydance is working on an all-cash offer aimed at acquiring the entirety of WBD. While no official proposal has been presented yet, discussions are reportedly underway behind the scenes. Representatives for both companies have so far declined to comment on the matter.
Shares of Paramount Skydance also jumped nearly 8% in afternoon trading as investor excitement grew.
Warner Bros. Discovery recently announced plans to split its operations into two independent companies. The restructuring will separate its global TV networks business, which includes channels like CNN and TNT, from its streaming and studio divisions. WBD CEO David Zaslav told investors earlier this week that the separation is expected to be finalized by April 2026. Under the new structure, the streaming and studio assets will operate under the Warner Bros. name, while the TV networks unit will be called Discovery Global.
Paramount and Skydance completed their own high-profile merger in August after months of negotiations. The combined company, led by David Ellison — son of Oracle co-founder Larry Ellison — has been aggressively expanding, signing a series of deals aimed at strengthening its position in a rapidly changing media landscape.
The entertainment industry has been undergoing a massive transformation as traditional pay-TV models decline amid the rise of streaming platforms. Companies like WBD and Comcast have begun spinning off their legacy TV businesses to focus on growth areas such as streaming, films, and digital content.
Industry analysts have long predicted that further consolidation is inevitable, as major players seek to gain scale and compete with global giants like Netflix, Disney, and Amazon.
Following Thursday's report, WBD shares surged to a session high of $15.97, reflecting renewed investor optimism. If Paramount Skydance proceeds with its bid, it would mark one of the largest takeovers in recent Hollywood history, potentially reshaping the competitive landscape of film, television, and streaming for years to come.
