Paramount Skydance reportedly wants to buy Warner Bros. Discovery. Here's what the megamerger would mean

"Yesterday, the Wall Street Journal reported that Paramount Skydance was preparing a bid to buy its rival Warner Bros. Discovery, citing anonymous sources. CNBC and other outlets also reported the rumored plan. The deal, according to WSJ, would be a majority all-cash one that would bid for the entirety of Warner Bros. Discovery, including its famed movie studio and its myriad cable networks. It would also include the HBO Max streaming service."

"If the deal were to be approved by Warner Bros. Discovery and its shareholders, it would make the combined media giants one of the largest entities ever in the U.S. media space. It would also come at a time when the media landscape continues to go through massive shifts as streaming continues its disruption of both the cable and network television landscape and Hollywood and the movie theater experience."

"The consolidation of the two companies would also, somewhat ironically, stymie Warner Bros. Discovery's stated efforts to de-consolidate itself, and thus the industry. In 2022, WarnerMedia and Discovery merged, but by 2024, the newly formed Warner Bros. Discovery announced plans to uncouple many of the company's assets. A merger between Warner Bros. Discovery and Paramount Skydance would put an end to that decoupling, as Paramount Skydance is reportedly set to acquire all of Warner Bros. Discovery's current assets."

Paramount Skydance is preparing a bid to buy Warner Bros. Discovery in a majority all-cash offer that would include the studio, cable networks, and HBO Max. If approved by Warner Bros. Discovery and its shareholders, the combined company would rank among the largest U.S. media entities. The move would reverse Warner Bros. Discovery's recent efforts to break up and uncouple assets after the 2022 WarnerMedia-Discovery merger and 2024 plans to deconsolidate. The proposed acquisition would occur amid ongoing industry shifts driven by streaming disruption of cable, network television, and theatrical distribution. The consolidation would concentrate major film, cable, and streaming assets under one corporate roof.

Read at Fast Company