"State of play: Paramount Skydance is working on a cash bid to acquire Warner Bros. Discovery, a source familiar with the discussions tells Axios. The deal would give the CBS parent access to another major news network, CNN, and a rival Hollywood studio, Warner Bros. Pictures. It would also breathe new life into Paramount Skydance's streamer Paramount+, which - combined with WBD's HBO Max - could better compete with Netflix and Disney for scale."
"By the numbers: A deal to buy WBD in cash wouldn't come cheap. WBD is currently valued at around $40 billion on the public market. It has $35 billion in debt remaining from the merger of Discovery and WarnerMedia, which formed the current company in 2022. Of note: In addition to family money, Ellison leveraged capital from RedBird Capital Partners, a private investment firm, to help foot the bill for his takeover of Paramount this summer."
Ellison completed Skydance Media's merger with Paramount Global and is targeting larger distressed media assets amid the streaming era. Paramount Skydance is preparing a cash bid to acquire Warner Bros. Discovery, which would add CNN and Warner Bros. Pictures while combining Paramount+ with HBO Max to better compete with Netflix and Disney. Warner Bros. Discovery is valued around $40 billion and carries about $35 billion of merger-related debt. Ellison used family funds and outside capital for the Paramount takeover, has pursued sports and distribution deals, and faces regulatory and political challenges from expanded news ownership.
Read at Axios
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