Copyright Variety
Warner Bros. Discovery is officially on the block, disclosing that it has received interest from “multiple parties” to acquire all or part of the company and that its board is reviewing various options. WBD didn’t say so, but David Ellison’s freshly merged Paramount Skydance is one of the bidders making a serious play for the media conglomerate. Needless to say, such a deal would represent major consolidation in the industry. It would pool Warner Bros. and Paramount Pictures, two of Hollywood’s most storied studios, along with their large content libraries. On the TV side, it would bring Paramount’s CBS broadcast, MTV, Comedy Central and BET together with HBO, TNT, TBS, Discovery Channel, HGTV, Food Network and more from WBD — with CNN and CBS News likely under one umbrella. And a merged Paramount-Warner Bros. Discovery would be expected to fuse HBO Max and Paramount+ into a supercharged streaming service. Of course, a Paramount-WBD merger would undoubtedly include a massive tranche of layoffs. Note that Ellison and his team are expected to begin mass layoffs at Paramount Skydance the week of Oct. 27, eliminating around 2,000 jobs in the U.S. with additional cuts internationally. As of the end of 2024, Warner Bros. Discovery had approximately 35,000 employees, including full- and part-time workers; Paramount Global had 18,600 at the end of last year but has made additional layoffs since then. There’s no guarantee Ellison and his financial partners (which include his mega-billionaire dad, Larry Ellison) will clinch a deal for Warner Bros. Discovery. WBD has rejected three offers from the Paramount team, including the latest one for nearly $24/share that comprised 80% cash, CNBC reported Wednesday. WBD is in the midst of splitting itself into two companies: Warner Bros., housing its streaming and studios businesses, and Discovery Global, with most of WBD’s TV business, a deal projected to be completed by April 2026. Other companies rumored to be interested in Warner Bros. Discovery assets — most likely the Warner Bros. entity with HBO Max and without the rest of the TV networks — include Comcast (which itself is unloading the bulk of NBCUniversal’s TV biz into a new company, Versant), as well as Amazon and Netflix. On Netflix’s earnings interview Tuesday, co-CEO Ted Sarandos said the company has “no interest in owning legacy media networks,” indicating a Netflix bid for WBD in its entirety is off the table; he also said Netflix can be “choosy” with M&A and said it evaluates all potential deals “relative to the price, relative to the opportunity cost, and relative to other alternatives.” Among the options it is evaluating, Warner Bros. Discovery said it would consider a deal structure under which it would sell Warner Bros. (streaming and studios) alongside a spin-off of Discovery Global to shareholders. “It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market,” David Zaslav, Warner Bros. Discovery’s CEO, said in a prepared statement Tuesday. “After receiving interest from multiple parties, we have initiated a comprehensive review of strategic alternatives to identify the best path forward to unlock the full value of our assets.” It’s a bit of déjà vu: WBD’s Zaslav and Paramount Global’s then-CEO Bob Bakish had met to discuss the possibility of a merger in late 2023 (before the Skydance takeover). But those talks didn’t progress, and Skydance ended up closing on the deal for Paramount. The future of Warner Bros. Discovery is currently up in the air. But given that Ellison and his financial partners might be able to put together an offer WBD can’t refuse, here’s what a combined Paramount Skydance-WBD would look like. Studios Warner Bros. is home to the DC Universe and Harry Potter film franchises, while Paramount’s portfolio includes Star Trek, Mission: Impossible and Top Gun. WBD’s Studios business includes the Warner Bros. Motion Picture Group (comprising Warner Bros. Pictures, New Line Cinema and Warner Bros. Pictures Animation), DC Studios and DC Comics Publishing, Warner Bros. Television Group, as well as consumer products, themed entertainment and brand licensing, home entertainment and interactive gaming. Hits in 2025 for the studios biz, in a rebound from recent years, have included James Gunn’s “Superman,” “A Minecraft Movie,” Ryan Coogler and Michael B. Jordan’s “Sinners,” “Final Destination Bloodlines,” Brad Pitt’s “F1: The Movie,” and “Weapons.” In 2024, the studios segment’s highlights were “Dune: Part Two,” “Beetlejuice, Beetlejuice” and “Godzilla x Kong: The New Empire” on the film side, and “Abbott Elementary,” “Shrinking” and “The Voice” on the TV side. Paramount Pictures’ results for the second quarter of 2025 were lifted by Tom Cruise’s “Mission: Impossible – The Final Reckoning,” which set a franchise record for the biggest global opening in theaters and grossed nearly $600 million at the global box office. The studio’s franchises include “The Godfather” trilogy, “Indiana Jones,” “Titanic,” “Forrest Gump,” “Top Gun,” “Iron Man,” “Love Story,” “Beverly Hills Cop” and “Saving Private Ryan.” In addition, the company’s filmed entertainment segment includes the Paramount Pictures Studio lot in L.A., spanning roughly 62 acres of land. Paramount Skydance also includes Skydance’s animation, film, TV, games and sports divisions. Streaming WBD’s streaming businesses include HBO Max, which just announced price increases of $1-$2 per month effective Oct. 21, as well as Discovery+ and sports streaming packages. As of the end of June, the services had 57.8 million domestic and 67.9 million international streaming subs, for 125.7 million total. HBO Max includes all current and classic HBO original series including “The Sopranos,” “Game of Thrones,” “Succession,” “The Pitt,” “The Penguin,” “The White Lotus,” “The Last of Us,” “Peacemaker,” “Hacks” and “Task” along with shows like “Friends,” “Abbott Elementary,” “Rick and Morty” and “The Big Bang Theory.” Paramount+ had 77.7 million subscribers as of the end of June. Paramount also operates the free, ad-supported Pluto TV service and the BET+ subscription service. Paramount+ features original series, shows and movies from brands and studios including BET, CBS, Comedy Central, MTV, Nickelodeon, Paramount Pictures and the Smithsonian Channel. Paramount+ Premium is also home to Showtime content, including original scripted series and nonfiction projects and films. The premium plan includes live sports programming through local live CBS streams, and all Paramount+ subscribers have streaming access to CBS News Network and CBS Sports HQ. TV Networks WBD’s linear networks in the U.S. include CNN, TNT, TBS, Turner Classic Movies, OWN, HGTV, Food Network, TLC, Discovery Channel and Adult Swim. In 2024, the company launched CNN International in Europe on Max. Paramount’s TV business comprises CBS – which the company touts as “America’s most‑watched broadcast network” — CBS News, CBS Sports, Nickelodeon, MTV, BET, Comedy Central, Smithsonian Channel and TV Land.
