Warner Bros Discovery Shares Jump Amid Paramount Skydance Buyout Rumors
Shares of Warner Bros Discovery surged on Thursday following reports that Paramount Skydance is considering a full buyout of the media giant, a move that could significantly reshape the U.S. entertainment industry.
The potential acquisition, first reported by The Wall Street Journal, would include Warner Bros Discovery’s extensive portfolio, such as HBO, CNN, and Warner Bros Studios, home to blockbuster franchises like Harry Potter and Barbie.
If completed, the deal would mark another major step toward consolidation in the media sector, which has been navigating intense competition fueled by the streaming boom. Both companies have faced increasing political scrutiny under President Donald Trump’s administration.
Neither Warner Bros Discovery nor Paramount Skydance has commented on the report.
The speculation comes just weeks after Paramount Skydance finalized its $8 billion merger, which saw David Ellison’s independent film studio, Skydance, acquire Paramount — the parent company of CBS and popular shows like Yellowstone.
David Ellison, son of Oracle co-founder Larry Ellison, has built a strong reputation in Hollywood, having produced hits such as Top Gun: Maverick and World War Z. His father, who briefly overtook Elon Musk as the world’s richest person earlier this week, has also been linked to major tech and media deals, including being floated by Trump as a potential TikTok buyer.
Following the buyout reports, Warner Bros Discovery shares jumped 29%, while Paramount Skydance rose 16%. However, insiders cautioned that no formal bid has been submitted, and the talks remain preliminary.
Warner Bros Discovery has faced financial headwinds since its 2022 merger, struggling with heavy debt and implementing widespread job cuts. Earlier this year, the company announced plans to split its streaming operations from its traditional cable television business in an effort to stabilize growth.
Paramount Skydance’s expansion has also come with political entanglements. Its recent takeover of Paramount faced a lengthy approval process, including a $16 million settlement with the government related to former President Trump’s legal battle with CBS over an interview with Vice President Kamala Harris.
As the media landscape continues to shift, analysts say the potential deal could be one of the most consequential mergers in recent entertainment history, with the combined company gaining unprecedented influence over streaming, film, and traditional television markets.
