Paramount Skydance is preparing a blockbuster bid for Warner Bros. Discovery that could value the struggling media giant at up to $24 a share, according to CNBC.
The proposed deal is expected to be 70% to 80% cash — backed in part by Oracle co-founder Larry Ellison, father of Paramount Skydance CEO David Ellison — with the rest in stock.
CNBC reporter David Faber said Friday that Paramount Skydance, the Ellison-controlled venture, is eyeing a bid in the range of $22 to $24 per share.
Warner Bros. Discovery stock began the day on Wall Street in the red, but the CNBC report, which was pubished at around 10:30 a.m. Eastern Time, sent shares higher.
As of 11 a.m. Eastern Time, the stock was up by nearly 2%. Paramount Skydance stock rose slightly as well.
Faber cautioned the figures were speculative and that a formal offer may come later than initially expected.
The looming bid reported by CNBC would put Warner Bros. Discovery — currently trading around $19 — at a multibillion-dollar premium.
Nevertheless, The Post reported that Warner Bros. Discovery CEO David Zaslav is pushing for a bidding war over his $40 billion media giant as David Ellison’s Paramount Skydance eyes a takeover.
Shares of Warner Bros. Discovery surged nearly 30% after initial word of Ellison’s planned bid, but Zaslav may split the company into two publicly traded entities next year if his price target isn’t met.
Zaslav has already met with Goldman Sachs bankers to solicit interest from Amazon, Apple and Netflix, aiming to drive the company’s stock up to $40 a share from its current $16.
Warner Bros. Discovery recently announced plans to carve up its operations, separating its global TV networks division from its streaming and film studio assets.
The split had been seen as a prelude to sales or partnerships, drawing interest from private equity firms and rival studios.
By moving now, Paramount Skydance could preempt those plans and seize a trove of assets that include HBO, CNN, Warner Bros. Pictures, DC Studios, and Discovery’s roster of lifestyle channels.
The bid comes just months after Paramount Global merged with David Ellison’s Skydance in an $8 billion tie-up that gave the Hollywood scion control of the company once led by Shari Redstone.
That deal created a powerful new player with Paramount Pictures, CBS, MTV, Nickelodeon and an extensive sports rights portfolio. Adding Warner Bros. Discovery would create a behemoth with two major studios and one of the largest bundles of pay TV networks in the world.
Industry analysts said the bid reflects mounting pressure on legacy media firms as cord-cutting accelerates and streaming growth slows.
Warner Bros. Discovery has been saddled with debt since its 2022 merger and has struggled to turn its Max streaming service into a Netflix rival.
CNBC reported last week that Ellison’s camp was weighing an aggressive move on Warner Bros. Discovery, setting the stage for a high-stakes contest over the future of Hollywood.
The Federal Communications Commission and Department of Justice would need to sign off on any combination, and antitrust scrutiny is expected.
Neither Paramount Skydance nor Warner Bros. Discovery has publicly commented on the offer.
