Paramount Eyes Warner Bros. Discovery in Potential Blockbuster Deal, Analysts Predict Bidding War

The long-rumored sale of Warner Bros. Discovery (WBD) is gaining momentum after a Wall Street Journal report revealed that Paramount’s new leadership is preparing a bid to acquire the media giant. The news sent shockwaves through the entertainment industry, with analysts warning that the move could spark a fierce bidding war involving multiple tech and media heavyweights.

Shares of WBD – CNN’s parent company – surged 29%, closing at a three-year high and nearly returning to the stock price level seen when Warner Bros. Discovery was formed through a 2022 merger. Paramount’s stock also jumped 15%, reflecting growing investor optimism about potential consolidation in the struggling media sector.

Jessica Reif Ehrlich, senior media analyst at Bank of America Securities, said the development was inevitable.
“The only surprise is the timing,” she noted. “It’s obvious the media industry needs to consolidate. If Paramount is making a bid for WBD, they won’t be the only ones.”

Warner Bros. Discovery had been preparing to split into two separate companies by early 2026, a move seen by analysts as a setup for future acquisitions or partnerships. Paramount’s reported bid aims to purchase the entire company before the planned split.

Potential rival bidders include Comcast, Amazon, and Netflix, with Netflix emerging as a particularly strong contender, according to Wells Fargo analysts who described WBD’s streaming and studio assets as a prime merger target.

The interest from Paramount follows an aggressive expansion strategy by CEO David Ellison, who recently orchestrated a high-profile takeover of Paramount’s TV and film divisions through his company, Skydance Media. Ellison, the son of Oracle founder Larry Ellison, has made no secret of his ambitions to reshape Paramount into a dominant, digitally driven media powerhouse.

Industry veteran John Malone, chair emeritus of WBD’s board and a mentor to WBD CEO David Zaslav, recently hinted at Ellison’s potential role in reshaping the sector.
“I’d bet on that guy,” Malone told The New York Times, revealing he had discussed possible consolidation plans with Ellison during last summer’s Sun Valley media conference.

For now, both companies have declined to comment on the report. Meanwhile, WBD is pushing forward with its 2026 breakup plans, which would see CNN and other TV networks grouped under Discovery Global, while HBO, HBO Max, and Warner Bros. Studios would form a separate Warner Bros. entity.

At a recent investor conference, Zaslav reassured stakeholders that “everything’s on track” for the split but reiterated that industry consolidation remains critical for survival.

If Paramount proceeds, the battle for WBD could become one of the most significant media mergers in years, reshaping the global entertainment landscape and intensifying competition in the streaming wars.