Warner Bros. Discovery is officially on the block, revealing it has received interest from “multiple parties” to acquire all or part of the company, and its board is considering various options. WBD won’t say so, but Paramount Skydance, which David Ellison just merged with, is one serious bidder for the media conglomerate.
Needless to say, a deal like this would mean massive consolidation in the industry. It will pool two of Hollywood’s most storied studios, Warner Bros. and Paramount Pictures, and their extensive content libraries. On the television side, Paramount’s CBS broadcasts, MTV, Comedy Central, and BET will be joined by WBD’s HBO, TNT, TBS, Discovery Channel, HGTV, Food Network, and more, with CNN and CBS News potentially coming under one umbrella. And if Paramount and Warner Bros. Discovery merge, it’s expected to combine HBO Max and Paramount+ into a powerful streaming service.
Of course, the Paramount-WBD merger will no doubt include major layoffs. That’s because a merger between the two conglomerates would reduce corporate overhead and consolidate functionality across the studio, TV and streaming businesses. Please note that Ellison and his team will begin mass layoffs at Paramount Skydance the week of October 27th, eliminating approximately 2,000 jobs in the United States and making additional cuts internationally. As of the end of 2024, Warner Bros. Discovery had approximately 35,000 full-time and part-time employees. Paramount Global had 18,600 employees at the end of last year, but has since made additional job cuts.
There is no guarantee that Ellison and his financial partners (including his billionaire father, Larry Ellison) will strike a deal with Warner Bros. Discovery. CNBC reported on Wednesday that WBD has rejected three offers from the Paramount team, including the latest offer of nearly $24 per share with 80% cash.
WBD is in the midst of splitting itself into two companies. The deal is expected to be completed by April 2026 between Warner Bros., which has streaming and studio businesses, and Discovery Global, which will handle most of WBD’s television business. Other companies rumored to be interested in Warner Bros.’ Discovery assets (presumably the Warner Bros. entity with HBO Max and no remaining TV networks) include Comcast (which itself is unloading most of the assets). It merged NBCUniversal’s television operations into a new company, Versant, which also brought in Amazon and Netflix. During Netflix’s earnings call on Tuesday, co-CEO Ted Sarandos said the company has “no interest in owning a traditional media network,” suggesting that a bid by Netflix for the entire WBD was off the table. He also said Netflix could be “selective” when it comes to M&A, evaluating all potential deals “against price, opportunity cost, and other options.”
Warner Bros. Discovery said that among the options it is considering, it would consider a deal structure that would sell Warner Bros. (streaming and studios) to shareholders alongside a spinoff of Discovery Global. “It is not surprising that the significant value of our portfolio is being recognized by other companies in the market,” Warner Bros. Discovery CEO David Zaslav said in a prepared statement Tuesday. “Following interest from multiple parties, we have begun a comprehensive review of strategic alternatives to identify the best path forward to maximize the value of the asset.”
This is a bit of deja vu. WBD’s Zaslav and Paramount Global’s then-CEO Bob Bakish met in late 2023 (prior to the acquisition of Skydance) to discuss a potential merger. However, those negotiations did not progress, and Skydance ended up signing a contract with Paramount.
The future of Warner Bros. Discovery is currently up in the air. But here’s what a combination of Paramount Skydance and WBD might look like, given that Ellison and his financial partners could potentially be able to put together an offer that WBD can’t refuse.
studio
Warner Bros. is home to the DC Universe and Harry Potter film series, while Paramount’s portfolio includes Star Trek, Mission: Impossible, and Top Gun.
WBD’s studio businesses include Warner Bros. Motion Picture Group (composed of Warner Bros. Pictures, New Line Cinema and Warner Bros. Pictures Animation), DC Studios and DC Comics Publishing, and Warner Bros. Television Group, as well as consumer products, themed entertainment and brand licensing, home entertainment and interactive games. The studio industry’s 2025 hits include James Gunn’s “Superman,” “The Minecraft Movie,” Ryan Coogler and Michael B. Jordan’s “Sinners,” “Final Destination: Bloodline,” Brad Pitt’s “F1: The Movie” and “Weapons” in a rebound from recent years. Highlights for the studios in 2024 were Dune: Part 2, Beetlejuice, Beetlejuice, and Godzilla x Kong: New Empire on the film side, and Abbott Elementary, Shrinking, and The Voice on the TV side.
Paramount Pictures’ second-quarter 2025 results were boosted by Tom Cruise’s Mission: Impossible: The Last Reckoning, which set a record for the biggest franchise in world theatrical release, with global box office revenue of nearly $600 million. The studio’s franchises include the “Godfather” trilogy, “Indiana Jones,” “Titanic,” “Forrest Gump,” “Top Gun,” “Iron Man,” “Love Story,” “Beverly Hills Cop” and “Saving Private Ryan.” In addition, the company’s motion picture entertainment division includes the Paramount Pictures Studios property, which spans approximately 62 acres of land in Los Angeles. Paramount Skydance also includes Skydance’s animation, film, television, gaming and sports divisions.
streaming
WBD’s streaming business includes HBO Max, which the company just announced will raise prices by $1 to $2 per month starting October 21, as well as Discovery+ and sports streaming packages. As of the end of June, the service had 57.8 million streaming members in Japan and 67.9 million overseas, for a total of 125.7 million. HBO Max includes all current and classic HBO original series such as The Sopranos, Game of Thrones, Succession, The Pit, The Penguin, White Lotus, The Last of Us, Peacemaker, Hux and Tusk, as well as Friends, Abbott Elementary, Rick and Morty, The Big Bang, and more. It also includes programs such as “Theory”.
Paramount+ had 77.7 million subscribers at the end of June. Paramount also operates a free ad-supported Pluto TV service and a BET+ subscription service. Paramount+ features original series, shows, and movies from brands and studios like BET, CBS, Comedy Central, MTV, Nickelodeon, Paramount Pictures, and the Smithsonian Channel. Paramount+ Premium also features Showtime content, including original scripted series and nonfiction projects and movies. Premium plans include live sports programming through local live CBS streams, and all Paramount+ subscribers have streaming access to CBS News Network and CBS Sports HQ.
television network
WBD’s linear networks in the U.S. include CNN, TNT, TBS, Turner Classic Movies, OWN, HGTV, Food Network, TLC, Discovery Channel and Adult Swim. In 2024, the company launched CNN International on Max in Europe.
Paramount’s television operations consist of CBS, which the company touts as “America’s most-watched broadcast network,” CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Smithsonian Channel, and TV Land.
The potential merger of CBS News and CNN raises the prospect that Bari Weiss, who was appointed editor-in-chief of CBS News after Paramount Skydance’s $150 million acquisition of Free Press, will have some role in CNN’s editorial operations.
