Shares soar as reports surface of Paramount Skydance preparing audacious Warner Bros takeover

Warner Bros Discovery shares rocketed nearly 30% after reports suggested that Paramount Skydance is preparing a dramatic takeover bid for the struggling media giant.

The potential deal, first revealed by the Wall Street Journal, would see Paramount Skydance acquire the entirety of Warner Bros Discovery — home to CNN, HBO, and the legendary film studios behind Harry Potter and Barbie.

If successful, the move would represent one of the biggest shake-ups in Hollywood’s history, further fuelling consolidation in an industry already transformed by the streaming revolution. It also comes at a politically sensitive moment, with the media sector facing close scrutiny from Donald Trump’s administration.

Shares in Warner Bros Discovery closed up 29% on Thursday, while Paramount Skydance gained 16%. The surge reflected investor excitement, even though no formal offer has been submitted and the plan could still collapse.

Warner Bros Discovery declined to comment, while Paramount Skydance did not respond to media requests.

The company leading the charge, Paramount Skydance, is run by David Ellison. The 41-year-old Hollywood producer is the son of Oracle co-founder Larry Ellison, who briefly overtook Elon Musk this week as the world’s richest man, with a fortune exceeding $380bn.

David Ellison made his mark with blockbuster productions such as Top Gun: Maverick and World War Z. Only weeks ago, his independent studio Skydance completed its $8bn merger with Paramount, bringing under its control CBS News and hit shows such as Yellowstone.

Now, his ambitions appear to extend further. Reports suggest Ellison is also closing in on buying The Free Press, the digital media outlet co-founded by journalist Bari Weiss.

But Paramount’s merger with Skydance has already dragged the younger Ellison into political controversy. The deal required prolonged government review due to a row stemming from Trump’s legal battle with CBS over an interview with Kamala Harris, which he alleged was edited to favour Democrats.

Ultimately, Paramount paid $16m to settle the dispute. The money is earmarked for a future presidential library, but critics, particularly Democrats, have branded the payout a “bribe”. Paramount has strongly denied the accusation, insisting the settlement was a pragmatic resolution.

When approving the merger, officials imposed conditions: Paramount had to commit to showcasing a “diversity of viewpoints,” dismantle its existing diversity programmes, and create an ombudsman role to handle complaints of political bias.

The fallout has already reshaped programming. Paramount announced that The Late Show with Stephen Colbert would end its run in May 2026, a decision critics allege was politically motivated. The company has denied those claims, arguing the cancellation was part of its broader restructuring. Meanwhile, Paramount snatched the rights to South Park for its streaming service in a five-year deal, luring the satirical series away from HBO.

Warner Bros Discovery, formed in 2022 through the merger of WarnerMedia and Discovery, has struggled ever since. Saddled with debt and forced to cut thousands of jobs, it recently revealed plans to split its streaming operations from its traditional cable business.

The potential Paramount Skydance bid highlights both Warner Bros Discovery’s vulnerability and the growing concentration of power in fewer hands at the top of the media industry.

For Ellison, whose father is a close ally of Trump, success would cement his place as a defining figure in global entertainment. But the hurdles are immense: regulatory scrutiny, political landmines, and the question of whether audiences — already sceptical of mega-mergers — will ultimately buy in.

For now, the only certainty is that Wall Street is betting big on a Hollywood drama playing out far beyond the silver screen.