Paramount Skydance Prepares Warner Bros Bid As Network Ten’s Future Still Uncertain

Paramount Skydance, the newly formed Hollywood powerhouse led by David Ellison, is reportedly preparing a takeover bid for Warner Bros Discovery (WBD) in a deal that could reshape the global media and streaming industry, including in Australia.

According to The Wall Street Journal, Paramount is working with bankers on a majority cash offer for WBD, backed by Ellison family wealth.

Neither company has confirmed the approach, but the speculation sent Warner Bros shares soaring 29% in New York trading, giving the company a market value of around US$40 billion. Paramount stock also jumped 16%.

For Australia, the development adds further uncertainty over Network Ten, which has been under pressure since Skydance completed its A$13 billion takeover of Paramount Global in August.

As ChannelNews previously reported, Ten’s costly rebrand of its 5pm news into a primetime 6pm bulletin has flopped, drawing fewer than 100,000 metro viewers a night.

Ellison may look to divest or restructure Ten as he pursues bigger global ambitions, raising questions about the broadcaster’s long-term survival.

The timing of the reported bid is crucial. Warner Bros chief executive David Zaslav announced in June plans to split the company into two – one focused on streaming and studios, the other on cable TV – in an attempt to unlock more value.

Any Paramount move would pre-empt that separation, with Zaslav expected to push for a hefty premium.

If successful, the merger would bring together some of the biggest franchises and brands in entertainment, from Harry Potter, Batman and HBO’s The Sopranos to Paramount’s Mission: Impossible, Yellowstone and The Godfather. It would also unite major news outlets CNN and CBS under one corporate roof, a politically charged prospect in the US.

David Ellison, son of Oracle co-founder Larry Ellison, only finalised his takeover of Paramount weeks ago.

Since then, he has moved quickly to expand the business, striking a multi-billion-dollar UFC broadcast deal, securing the Stranger Things creators, and signing a film pact with Activision for a Call of Duty movie.

Analysts say a Paramount-Warner deal would mark the biggest Hollywood consolidation since Disney’s US$71 billion acquisition of Fox in 2019, shrinking the number of legacy studios from five to four.

But antitrust experts warn such a tie-up could reduce consumer choice, even as it strengthens the studios’ fight against Netflix and Disney+.