Paramount Skydance Corp. (NASDAQ:PSKY) is reportedly working with an investment bank to prepare a potential bid for Warner Bros. Discovery, Inc. (NASDAQ:WBD), according to people familiar with the situation.
- WBD stock had its best day ever. See the price action here.
Takeover Bid?
As of Thursday, Warner Bros. Discovery had not yet received a formal proposal, but sources said an offer could arrive as soon as next week, CNBC reported.
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Warner Bros. Discovery recently announced plans to separate its global television business from its studios and streaming operations, with the split expected by April 2026.
The Paramount Skydance offer would be an all-cash bid for the entire company, since a purchase before the split would require buying WBD outright.
Warner Bros. Discovery's stock jumped more than 28% on Thursday, closing at $16.15 -- its biggest single-day gain ever -- following news of the possible takeover.
Paramount Skydance's shares also rose about 15%. Both companies declined to comment.
Potential Merger
A merger between the two media giants would combine valuable assets: Paramount Skydance owns CBS, Nickelodeon, MTV, BET and Paramount+, along with a film studio that produced classics like "The Godfather" and "Top Gun."
Warner Bros. Discovery controls CNN, TNT, HBO, HBO Max and Warner Bros. studios, home to franchises such as "Harry Potter" and DC Comics.
Both companies also hold major sports rights, including the NFL, MLB, and college sports, making the combined company a major entertainment powerhouse.
Paramount Skydance itself is the result of an $8 billion merger finalized in August after regulatory approval, backed by RedBird Capital Partners and led by Skydance CEO David Ellison.
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