Paramount Skydance is reportedly preparing a $71 billion bid to acquire Warner Bros Discovery, marking one of the largest potential media mergers in recent years. The news, first reported by Variety, comes amid Warner Bros Discovery’s ongoing efforts to evaluate strategic options, including a potential breakup of its businesses.

Structure of the Proposed Bid

According to Variety, Paramount Skydance has allegedly formed an investment consortium with the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi to finance the bid. Paramount would reportedly contribute approximately $50 billion, with the remaining funds coming from the wealth funds. However, Paramount Skydance has described the involvement of these foreign investors as “categorically inaccurate.”

Under the proposed structure, the sovereign wealth funds would take minority stakes and receive select benefits, such as intellectual property rights, movie premieres, or participation in movie shoots, according to sources.

Leadership and Political Connections

Paramount Skydance is led by David Ellison, son of Oracle co-founder Larry Ellison and a close ally of US President Donald Trump. Warner Bros Discovery had previously rejected a bid from the Ellison family, which holds full voting power at Paramount Skydance.

CBS, which is owned by Paramount Skydance, has taken a more conciliatory approach toward the Trump administration. The network recently hired a Trump nominee as an ombudsman following a lawsuit over alleged bias in a 60 Minutes interview with 2024 Democratic presidential nominee Kamala Harris. Paramount also appointed Bari Weiss, a right-leaning journalist, to lead CBS’s broadcast news division.

Warner Bros Discovery: A Company in Transition

Warner Bros Discovery, the parent company of CNN, HBO, TNT, Warner Bros Games, and the DC film universe, is navigating a period of significant change. Declines in its television business have prompted the company to explore multiple strategic options, including:

• Separation of Warner Bros and Discovery Global businesses
• A full buyout of the company
• Individual transactions for certain assets

Nonbinding, first-round bids are due by Thursday, with Paramount Skydance currently the only company reportedly considering a full buyout, according to Axios. Warner Bros Discovery hopes to conclude a deal by the end of the year.

Competitive Landscape and Regulatory Concerns

Other major media companies, including Netflix and Comcast, are reportedly exploring bids. A Comcast-led acquisition would require regulatory approval, and the Trump administration has previously criticized Comcast’s news coverage.

Experts warn that a merger between Paramount Skydance and Warner Bros Discovery could raise antitrust and civic concerns, particularly regarding news media consolidation. Rodney Benson, a professor at New York University, noted that combining CBS and CNN under a single conglomerate with close ties to the ruling party could:

• Limit independent watchdog reporting
• Reduce diverse voices and viewpoints
• Increase conflicts of interest in media coverage

Market Reaction

Following news of the potential deal, Paramount Skydance shares rose 1.7%, Warner Bros Discovery shares increased by 2.8%, Netflix climbed 3.5%, and Comcast gained 0.5% in midday trading.

As negotiations progress, the media industry and regulators will closely monitor the implications of such a massive acquisition, particularly regarding news independence, competition, and influence on public discourse.