Paramount Skydance Pursues Acquisition of Warner Bros. Discovery Amid Strategic Review

In a move that could significantly reshape the entertainment industry, Paramount Skydance, led by CEO David Ellison, has made multiple acquisition bids for Warner Bros. Discovery (WBD) since September 2025. Despite escalating offers, WBD's board has consistently declined these proposals, considering them undervalued. As of November 5, 2025, WBD is reviewing strategic alternatives amid ongoing interest from various parties.

Paramount Skydance, formed through an $8 billion merger between Paramount Global and Skydance Media in August 2025, has been actively seeking to expand its portfolio. The initial bid for WBD, reported at approximately $20 per share, was rejected by WBD's board. Subsequent offers, including a nearly $60 billion proposal at around $24 per share, were also declined. WBD's board deemed these offers insufficient, with CEO David Zaslav reportedly seeking closer to $30 per share.

In response to these acquisition attempts, WBD announced on October 21, 2025, that it had initiated a comprehensive review of strategic alternatives to maximize shareholder value. This review includes considering the company's planned separation into two entities—Warner Bros. and Discovery Global—expected to be completed by mid-2026. The company acknowledged receiving unsolicited interest from multiple parties for both the entire company and its individual units.

The potential merger has elicited reactions from various stakeholders. The Writers Guild of America (WGA) expressed opposition, stating that repeated mergers in the media industry have negatively impacted workers and reduced competition. The WGA plans to advocate for regulatory intervention to halt the merger. Additionally, Senator Elizabeth Warren criticized the proposed consolidation, expressing concerns over media concentration and its impact on competition and diversity of viewpoints.

Market reactions have been notable. Following reports of Paramount Skydance's initial bid, WBD's stock surged nearly 30%, reflecting investor optimism about potential consolidation in the media industry. Analysts suggest that a merger between Paramount Skydance and WBD could create a content powerhouse, combining major franchises and streaming platforms to better compete with industry leaders like Disney and Netflix.

Regulatory scrutiny is anticipated, given the scale of the proposed merger and its potential to reshape the media landscape. The Federal Communications Commission (FCC) previously approved the Paramount-Skydance merger amid controversy, including a $16 million settlement paid to former President Donald Trump over a lawsuit related to CBS's coverage. This history suggests that any further consolidation will be closely examined by regulatory bodies.

As of November 5, 2025, no acquisition has been finalized. WBD continues to evaluate its options, considering both the planned separation and potential transactions. The outcome of these deliberations could have significant implications for the media industry, potentially leading to further consolidation and reshaping the competitive landscape.

The situation remains dynamic, with industry observers closely monitoring developments. The decisions made by WBD and Paramount Skydance in the coming months will likely influence the future direction of the entertainment sector, affecting content creation, distribution strategies, and consumer choices.