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Shares in Warner Bros Discovery (WBD) were 4% higher ahead of the US opening bell, after climbing 29% in Thursday’s session, fuelled by reports that Paramount Skydance (PSKY) is preparing a takeover offer.
According to a Wall Street Journal report, Paramount (PSKY) is planning a majority cash bid for WBD (WBD), with the offer reportedly being backed by the Ellison family. The deal, if it materialises, would mark a major shake-up in the US entertainment and media industry, combining some of the most iconic brands across TV, cinema, and news for the first time.
A merger between Paramount (PSKY) and Warner Bros Discovery (WBD) would unite an large portfolio of assets, including Warner Bros movie studios, CNN, the DC Comics franchise, and TV networks such as HBO, among others. Paramount, in turn, boasts its own properties, such as Paramount Pictures, CBS in the US, Channel 5 in the UK, and popular networks like Comedy Central and MTV.
Such a combination would reshape the landscape of US media, bringing together household names like South Park and Superman, 60 Minutes and CNN, under one corporate umbrella.
The scale of the potential combination could bring antitrust and regulatory scrutiny.
Mike Proulx, research director at Forrester VP, said: “If this buyout were to actually happen it would redefine the streaming landscape through further consolidation. A new streaming service by combining HBO Max with Paramount+ would have the scale to better compete against Netflix and the unified Disney+ and Hulu library.
“This could be good for consumers in the form of cost savings, but it also would reduce marketplace choice. What’s clear is that as the streaming market matures, it’s looking a whole lot like the OG television industry—all the way back to when there were just a few big networks and studios.”
Skydance, run by David Ellison, the son of billionaire Oracle (ORCL) founder Larry Ellison, closed its deal to merge with Paramount (PSKY) weeks ago.
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