Warner Bros. Discovery Stock Soars on Reported Paramount Skydance Takeover Bid

Shares of Warner Bros. Discovery (WBD) surged as much as 34% on Thursday.

The move came after reports that Paramount Skydance, backed by the billionaire Ellison family, is preparing a majority cash bid for the entertainment giant. The news ignited investor enthusiasm, sending Warner Bros. stock to the top of the S&P 500 for the day, while Paramount shares also climbed nearly 8%.

The bid, though not yet formally submitted, would cover all of Warner Bros. Discovery’s assets—including its famed Warner Bros. movie studio, HBO and HBO Max, DC Comics, and CNN. If successful, the deal would combine two of Hollywood’s most storied companies under the leadership of David Ellison, whose Skydance Media recently acquired Paramount Global for $8.4 billion.

The Ellison Factor and Strategic Rationale
The reported bid underscores David Ellison’s aggressive strategy to expand Skydance into a dominant media force, with strong backing from his father Larry Ellison, the Oracle co-founder whose wealth now exceeds $360 billion. Analysts note that financing a Warner Bros. acquisition would require substantial private capital, given WBD’s pre-bid market value of around $30 billion and its heavy debt load of about the same size.

Ellison has already demonstrated a bold appetite for deals, signing exclusive rights with the UFC, the Duffer brothers of Stranger Things, and Activision’s Call of Duty franchise. Adding Warner Bros. Discovery would instantly reshape the entertainment landscape, uniting studios, streaming platforms, and legacy broadcast assets at a time when traditional media companies are under pressure from tech giants like Apple (AAPL) and Amazon (AMZN).

What It Means for Investors
For Warner Bros. shareholders, the potential buyout represents both opportunity and uncertainty. The stock is already up nearly 25% year-to-date and now trades close to its 52-week high of $13.70. Still, long-term holders have endured sharp declines—$1,000 invested five years ago would be worth just $581 today.

Fundamentally, Warner Bros. Discovery has been working to improve its balance sheet, cutting $20 billion in debt and projecting more than $1.3 billion in streaming profitability this year. The company also announced plans to split into two public businesses—one focused on studios and streaming, the other on global networks like CNN and Discovery. A Paramount Skydance acquisition could disrupt or accelerate those plans, depending on regulatory approvals and strategic priorities.

Conclusion
Warner Bros. Discovery’s stock surge highlights investor excitement over consolidation in the media sector, where scale and streaming dominance are increasingly critical. While no formal bid has yet been made, the Ellison-backed move could mark one of the largest shake-ups in Hollywood history. For retail investors, the news may drive continued volatility in WBD shares as the market weighs blockbuster deal speculation against the company’s long-term financial challenges.

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