In a stunning turn of events, Warner Bros. Discovery has slammed the door on a massive takeover offer from Paramount Skydance, leaving the industry buzzing with questions about the future of media consolidation. But here's where it gets controversial: Was the $20 per share offer truly undervaluing WBD, or is this a strategic move to hold out for a sweeter deal? According to a recent Bloomberg report, Warner Bros. Discovery (WBD) has rejected a takeover bid of approximately $20 per share from David Ellison’s Paramount Skydance, deeming it “too low.” This comes just weeks after Ellison’s Skydance finalized its acquisition of Paramount Global, sparking speculation about his ambitions to reshape the media landscape. WBD, the powerhouse behind HBO/HBO Max, Warner Bros. Entertainment, CNN, TNT, and TBS, boasts a market cap of $42.3 billion, with shares closing at $17.10 on Friday—a 36% surge since Ellison’s interest became public in September. And this is the part most people miss: The Bloomberg report didn’t clarify whether Paramount’s offer included assuming WBD’s staggering $35.6 billion debt, a detail that could dramatically alter the deal’s appeal.
Behind the scenes, Paramount Skydance has been in talks with Apollo Global Management, the firm that previously vied for Paramount Global, to potentially join forces in the WBD bid. Larry Ellison, David’s billionaire father and Oracle founder, was the financial backbone of Skydance’s $8 billion Paramount Global deal, underscoring the family’s appetite for media dominance. Representatives from Paramount, WBD, and Apollo remained tight-lipped when approached for comment.
At last week’s Bloomberg Screentime conference in L.A., David Ellison stopped short of confirming the WBD bid but hinted at his broader vision. He argued that Paramount needs to acquire more content-producing powerhouses to thrive in today’s streaming-dominated market, echoing WBD CEO David Zaslav’s recent calls for industry consolidation. “You actually need more content to yield more engagement,” Ellison stated, emphasizing the need to produce “more movies, more television series” to achieve scale. While he didn’t name specific targets, his comments fueled speculation that WBD could be a key piece in his puzzle.
Here’s the kicker: Paramount Skydance’s bid, if successful, would acquire WBD in its entirety, as first reported by the Wall Street Journal. This comes at a pivotal moment, as WBD plans to split into two companies next spring—Warner Bros. (studios and streaming) and Discovery Global (TV networks and Discovery+). Could this split be a strategic move to make WBD more attractive to buyers, or is it a defensive play to fend off unwanted advances?
The rejection of the $20 per share offer raises a thought-provoking question: Is WBD playing hardball to secure a higher price, or does it genuinely believe it can thrive independently in an increasingly consolidated market? And what does this mean for the future of media giants in the streaming era? Let us know your thoughts in the comments—do you think WBD made the right call, or is this a missed opportunity? The debate is wide open, and the stakes have never been higher.
