In what could be one of the most significant transactions in recent media-industry history, David Ellison’s newly formed Paramount Skydance appears to be the front-runner in a potential takeover of Warner Bros Discovery (WBD). Analysts say Ellison’s access to deep financial resources and strong Washington connections give him a distinct edge over other suitors.
Ellison and his team are riding high following the August agreement that brought together Paramount and his production outfit, Skydance. With that momentum behind him, he is now the bidder to beat for the entire WBD empire, which encompasses the HBO brand, the Warner Studios film division, and a streaming business boasting more than 120 million subscribers globally.
While others, such as Comcast Corporation, Apple Inc., and Netflix Inc., have been mooted as possible acquirers, Ellison is singled out for being structurally better placed to absorb the scale of WBD. A recent bid of roughly US $60 billion is claimed to have been submitted and rejected by WBD, suggesting there is serious intent behind the acquisition chatter.
At a valuation of approximately US $74 billion (based on Bank of America analyst Jessica Reif Ehrlich’s estimate of US $30 per share), the price tag is admittedly steep. But it is within sight of Ellison’s capacity, given that his father, Larry Ellison, is among the world’s wealthiest individuals, pegged at a net worth of about US $330 billion.
In contrast, while Apple and Netflix are financially capable of large deals, their historical focus and corporate strategy do not point towards acquiring heavy legacy-media assets. Apple’s largest acquisition remains the US $3 billion purchase of Beats; Netflix has never done a takeover beyond US $1 billion. Even Comcast, despite its size, holds roughly US $9.7 billion in cash and would likely need to bring in substantial debt or partner engagement for a bid of this magnitude.
A key strategic consideration is whether WBD would be sold in whole or broken into parts. Analysts argue that splitting the company might be more attractive to some bidders who are hesitant to take on its roughly US $35 billion debt and the declining prospects of its traditional cable-TV business. For example, Netflix or Apple might hone in on the studio and streaming assets, while Comcast could prefer the theme parks and core NBCUniversal media assets.
However, Ellison reportedly has his “trump card.” People view Ellison’s access to Washington through his father’s established political connections as a significant advantage in navigating regulatory hurdles. A deal of this magnitude, encompassing major U.S. cable-network assets and two dominant studios, would undoubtedly attract intense scrutiny from the U.S. administration. As one academic observer put it, “If anyone does buy the whole thing … it’s going to have to have the blessing of the current U.S. administration.”
From a UK and wider Europe perspective, the unfolding story merits close monitoring. Media consolidation on this level may impact worldwide content distribution, streaming pricing, and competitive dynamics in countries outside the United States. For content producers and broadcasters in the UK, the effects of a WBD acquisition could impact licensing agreements, rights negotiations, and platform strategies across the business.
The combination of deep capital, political leverage, and recent dealmaking momentum places Paramount Skydance in a dominant position. The stakes are high: if Ellison succeeds, he will reshape one of Hollywood’s foundational media conglomerates; if not, the bidding war and regulatory maze ahead promise to be at least as complex. Either way, WBD’s future and the broader media landscape may be on the cusp of a major transformation.
