Speculation about the potential sale of Warner Bros. Discovery (WBD) intensified recently, following reports that Paramount’s new owners are preparing to place a bid for the competing media giant. Analysts caution that any ensuing deal is likely to be lengthy and complex, marking the start of what could become a competitive bidding war.
On the day the news broke, shares of WBD experienced a dramatic surge, rising by 29% and reaching their highest level in three years. This increase highlights a near-complete rebound for WBD’s stock since its merger in 2022. Similarly, shares in Paramount climbed more than 15%, signaling investor optimism regarding both companies’ futures in a challenging media landscape.
Bank of America Securities analyst Jessica Reif Ehrlich commented on the situation, noting that the timing of Paramount’s interest was the only unexpected factor. She emphasized the pressing need for consolidation within the media industry, hinting that Paramount may not be the only contender looking to acquire WBD.
Warner Bros. Discovery has plans to split into two distinct entities by early 2026—a strategy that analysts interpret as indicative of potential further mergers and acquisitions in the media sector. However, reports indicate that Paramount seeks to acquire the entire company before this planned split occurs.
Several prominent companies have been identified as potential bidders for WBD, including Comcast, Amazon, and Netflix. In a recent assessment, Wells Fargo analysts described WBD’s streaming and movie studio divisions as “attractive M&A candidates,” suggesting that Netflix could emerge as the “most compelling buyer.”
CEO David Ellison of Paramount, who has expressed ambitions for strategic growth, is at the forefront of this initiative. Ellison, the son of Oracle founder Larry Ellison, recently led the integration of Paramount with Skydance Media, aiming to position the newly merged entity in a digitally savvy direction.
Additionally, John Malone, a long-time associate of WBD CEO David Zaslav and chair emeritus of WBD’s board, revealed that he has had conversations with Ellison regarding potential consolidation in the media industry. Malone expressed his confidence in Ellison during a book promotion, indicating strong belief in his vision for Paramount.
Both Warner Bros. Discovery and Paramount have refrained from commenting on the reports concerning the expected bid. As preparations for WBD’s split continue, Zaslav confirmed that various networks, including CNN, will transition to a new entity called “Discovery Global,” while assets like HBO and Warner Bros. will remain under the “Warner Bros.” umbrella.
Zaslav has frequently highlighted the necessity for consolidation in the industry, leading to speculation that the disparate halves of WBD, post-split in 2026, could potentially pursue acquisitions rather than divestitures.
