Why a Paramount-WBD Merger Makes Sense | Analysis
David Ellison isn’t wasting time. Just five weeks after his Skydance Media closed an $8 billion takeover of Paramount Global, reports say he’s now considering something much bigger — a $70+ billion bid to buy Warner Bros. Discovery (WBD).
Why the rush?
Ellison’s team is still busy cutting costs at Paramount Skydance, including thousands of layoffs, but moving fast on WBD could help him beat rivals like Netflix, Amazon, Apple, Comcast, and Sony, who may want Warner Bros. after it splits in 2026.
Right now, WBD plans to separate into two companies by April 2026:
- Warner Bros. (HBO Max + film studios)
- Discovery Global (CNN, TNT, TBS, Discovery, etc.)
Waiting until then would allow buyers to scoop up the valuable Warner Bros. side without taking on Discovery’s heavy TV baggage and massive debt. But Ellison may be trying to act early to lock in the whole company before competitors swoop in.
The bigger strategy
Industry experts say Ellison’s move may be part of a larger plan — consolidating major media players during a time of disruption to create a giant streaming-first empire. A combined Paramount+, HBO Max, CBS, and Warner Bros. library would be a serious force against Netflix and Disney.
The hurdles ahead
But this won’t be easy:
- Debt load: WBD carries about $71 billion in enterprise value when debt is factored in, much higher than the Paramount deal.
- Regulation: Unlike Skydance-Paramount, this merger combines two media giants with overlapping assets, raising antitrust concerns. Senator Elizabeth Warren has already spoken out, calling it a “dangerous concentration of power” that should be blocked.
- Politics: The Trump administration approved Ellison’s Paramount takeover with conditions, but critics allege backroom deals played a role. More scrutiny is likely this time.
What’s at stake
If successful, Ellison could reshape Hollywood by merging two legendary studios, creating cost savings, and potentially combining CNN with CBS News, plus CBS Sports with Turner’s March Madness coverage. But if the bid stalls, competitors — especially Netflix — may see Warner Bros. as their chance to finally own a major studio.
For now, all eyes are on whether Ellison can really pull off a second mega-deal so soon after swallowing Paramount.
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