As Paramount Skydance moves toward a possible acquisition of Warner Bros. Discovery, CNBC’s David Faber reported Friday that the offer could fall in the range of $22 to $24 per share. Faber, citing unnamed sources, cautioned that the price range is speculative and that any formal bid could be delayed beyond previous expectations.
Shares of Warner Bros. Discovery (WBD) rose roughly 1.5% Friday morning to trade around $19 each amid the news.
Last week, CNBC reported that the newly merged Paramount Skydance was preparing a substantial cash offer for Warner Bros. Discovery. Such a move could preempt a planned split of Warner Bros. Discovery’s operations, combining its global pay TV networks, sports rights, and major film studios with Paramount Skydance’s content portfolio to create a media powerhouse.
Warner Bros. Discovery recently announced plans to separate its global television networks business from its streaming and studio operations, prompting speculation about potential buyers.
Faber noted that any formal bid from Paramount Skydance could consist of roughly 70% to 80% cash, partially backed by Larry Ellison, co-founder of Oracle and father of Paramount Skydance CEO David Ellison. The remaining portion of the proposed deal could be paid in stock, though details have not been finalized.
The potential transaction highlights the growing consolidation in the media sector as companies seek scale in content, distribution, and streaming capabilities to compete in a rapidly evolving entertainment landscape.
The proposed deal is expected to be predominantly cash-based, with 70% to 80% of the offer financed through cash, backed in part by Oracle co-founder Larry Ellison. The remaining portion would likely be in the form of PSKY stock. This structure aims to provide immediate liquidity to Warner Bros. Discovery shareholders while maintaining strategic alignment between the two companies.
The merger would unite two of Hollywood’s most iconic studios, combining Warner Bros.’ extensive film and television portfolio—including DC Comics, HBO, CNN, and TBS—with Paramount’s assets, including Paramount+, CBS, and Nickelodeon. This consolidation is seen as a strategic move to enhance competitiveness against major media players like Netflix and Disney, particularly in the evolving streaming landscape.
Following the announcement, Warner Bros. Discovery’s stock experienced a notable increase, reflecting investor optimism about the potential deal. However, some analysts have expressed caution. TD Cowen analyst Doug Creutz downgraded WBD’s stock from “Buy” to “Hold,” citing concerns over the speculative nature of the bid and the possibility of the offer not materializing.
The proposed acquisition would require approval from regulatory bodies, including the Federal Communications Commission (FCC) and the Department of Justice (DOJ), due to antitrust concerns. The deal’s impact on media competition and content diversity will likely be key factors in the regulatory review process.
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