Paramount Skydance Plans $22-$24 Billion Warner Bros. Discovery Bid Backed by Larry Ellison

Paramount Skydance is preparing a potential takeover bid for Warner Bros. Discovery (WBD), valuing the company between $22 and $24 per share, with a payment structure of approximately 70% to 80% cash backed in part by Oracle co-founder Larry Ellison and the remainder in stock. This strategic move aims to preempt Warner Bros. Discovery's planned split of its global TV networks from its streaming and studio assets, potentially creating a major media powerhouse with a vast portfolio including HBO, CNN, and Warner Bros. studios. Warner Bros. Discovery, currently trading near $19 per share with a market capitalization around $47.25 billion, has seen its stock rise modestly following news of the potential bid. CEO David Zaslav is reportedly pushing for a bidding war and has engaged investment banks to explore interest from companies like Amazon, Apple, and Netflix, aiming to raise the stock price further. Analyst consensus remains mixed, with some projections suggesting significant downside risk, but brokerage recommendations overall indicate an “Outperform” rating for WBD shares. The outcome of this potential deal could reshape the media landscape by consolidating major content and distribution assets under Paramount Skydance's control.