- Warner Bros. Discovery rejected an initial offer from Paramount Skydance of around $20 per share.
- Paramount is considering raising its bid and seeking additional financial support, in talks with Apollo Global Management.
- Warner is considering splitting into two companies, a move that could alter the valuation and timing of a potential transaction.
- Other candidates are losing ground: Netflix would not undertake a $75-100 billion investment, and Comcast would face intense regulatory scrutiny.
The Hollywood corporate chessboard is moving again: Paramount Skydance has explored buying Warner Bros. Discovery. (a group with recent legal actions such as the sues MidJourney), but the first approach has not prosperedAccording to multiple reports, the initial proposal was deemed insufficient by the company led by David Zaslav, rekindling debate over the price, timing, and regulatory feasibility of such a deal.
This script comes after the recent integration of Skydance into Paramount and in the midst of a restructuring process in the entertainment sector. David Ellison's bet is on gaining scale to produce more films and series, but Warner—at a time of greater commercial traction— She doesn't seem willing to give up control without a valuation that reflects its current momentum.
The offer: figures, rejection and evaluation
According to sources cited by Bloomberg, Paramount Skydance offered around $20 per share by the entirety of Warner Bros.. Discovery (WBD). The proposal was rated as too low and, for now, has been rejected by WBDIn the pre-market session, WBD shares closed at $17,10, with a market capitalization of approximately $42,3 billion.
The available information does not clarify whether the approach contemplated the assumption of the WBD's net debt (around 35,6 billion at the end of June), a key factor in calculating the company value. Neither Warner Bros. Discovery nor Paramount has made detailed public comments., beyond the usual line of caution in these processes.
In parallel, Paramount considers raising the bid, directly sound out WBD shareholders, and strengthen its financial muscle with specialized partners. The strategy indicates that the transaction is not ruled out, but that negotiations would require a different price range and clarity regarding the asset scope.
Why now: internal reorganization and box office
The timing is no coincidence. Warner has hinted at plans to split into two companies looking ahead to next year: on the one hand, studios and streaming (Warner Bros.) and, on the other, international networks (Discovery Global). Executing a purchase before this separation could avoid asset fragmentation and facilitate immediate industrial synergies in production, licensing and distribution.
In addition, WBD's film business is experiencing a favorable period: Motion Picture Group presidents Michael De Luca and Pam Abdy have renewed their contracts. after a solid box office performance. Various reports put the studio's global box office takings at around 4.000 billion so far this year, with multiple new releases leading the opening weekend.
This operational improvement not only raises internal morale; it also hardens price expectations of any hypothetical buyer. In other words, the more brilliant the catalog and its performance, the more difficult it is to justify a limited premium on a total transaction.
Funding and support from Paramount Skydance
At the forefront of the offensive is David Ellison, which has just completed the integration of Skydance with Paramount. On the financial front, talks have emerged with Apollo Global Management to co-finance a reinforced offer, while Larry Ellison —founder of Oracle and father of David— continues to be a relevant supporter of the new Paramount.
Given the initial rejection, several avenues for progress are being considered within Paramount: increase the price, structure the operation with mixed instruments (cash and shares) or attract additional capital that reduces the resulting leverage. All of this is always subject to market reaction and regulatory interpretation in the US and other territories.
- Raise the bid: explore a range that brings the valuation closer to the post-synergy potential.
- Go to shareholders: test for direct support if the WBD board remains reticent.
- Strengthen financing: Partners like Apollo could reduce execution risk.
Other potential buyers and the regulatory filter
Analysts see less room for improvement in the alternatives lane. Netflix would not be a likely contender: It would not be appropriate to spend between 75 and 100 billion and, in addition, the interest in cable channels inherited would be scarce. Comcast would face an antitrust review especially rigorous; Apple y Amazon They do not seem ready for a leap of this magnitude; y Sony would likely need a venture capital partner to propose a competitive approach.
This crossing of restrictions leaves Paramount Skydance in a preferred position if the sector continues to consolidateThe focus, therefore, shifts from "who" to "how": structure, timing, and regulatory conditions will be the arbiters of the game.
What scenarios are contemplated
There are various outcomes on the table. The most straightforward would be a improved offer for 100% of WBD that satisfies the board and passes regulatory filters. Another way would be through an alliance or distribution and content agreements that generate scale without full integration. A third path, pending a possible spin-off into WBD, would involve activating selective block operations once the assets have been separated.
In public, Ellison has avoided confirming specific moves, although he hints at a pro-consolidation agenda: “There are viable short-term options” and the priority is to gain capacity to produce "more films and series." The market, meanwhile, discounts that the coming weeks and months will be decisive in determining whether the hypothesis translates into a formal negotiation.
With a first slam and several pieces still to be moved, Warner and Paramount gauge their strength in a pulse that reflects the race for streaming scale, catalog relevance, and the cost of capital. If a new offer arrives, its price, the inclusion (or not) of debt, and the regulatory framework will set the pace of a transaction that, if closed, would redefine the entertainment map on both sides of the Atlantic.
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