Warner Bros. Discovery (WBD) shares saw a significant surge, increasing nearly 36 percent amid reports that Paramount Skydance is preparing a substantial cash bid for the company. This move is backed by the Ellison family, with David Ellison, son of Oracle founder Larry Ellison, recently merging Paramount Global with his Skydance company—a deal that was finalized just last month.
WBD’s stock hit a peak of over $17 per share, a stark contrast to its opening price below $13. This jump in shares represents a marked shift for investors who have been anticipating growth within the company.
Larry Ellison’s recent success has further illuminated the unprecedented week for him, as a notable rise in Oracle’s stock value increased his net worth by approximately $100 billion. This upswing temporarily positioned Ellison ahead of Elon Musk as the world’s wealthiest individual.
The reported bid from Paramount Skydance covers the entirety of Warner Bros. Discovery. This acquisition plan comes at a crucial time as WBD’s CEO, David Zaslav, is currently in the midst of splitting the company into two distinct entities, a process expected to conclude by April 2026. Under this restructuring, Zaslav will oversee the “Warner Bros.” entity, which includes studios and HBO, while Gunnar Wiedenfels, the current chief financial officer, is set to lead the legacy cable channels along with Discovery+.
The formation of Warner Bros. Discovery occurred in April 2022 when Zaslav’s Discovery, Inc. merged with AT&T’s WarnerMedia, resulting in a significant debt burden. Although a portion of that debt has been addressed since the merger, much of what remains is anticipated to be spun off with the cable business.
While the prospect of a merger between Paramount Skydance and Warner Bros. Discovery presents considerable regulatory challenges, it is noted that this potential deal may be less complicated for Ellison. Unlike other media conglomerates, Ellison does not own a broadcast network, as his interests are primarily in streaming, cable, and film. This situation could streamline the acquisition process, should negotiations progress.
