Paramount Skydance Corp., the Hollywood studio taken over in August by independent filmmaker David Ellison, is preparing a bid for rival Warner Bros. Discovery Inc., according to a person with knowledge of the matter.
The mostly cash offer will be for the entire company, the Wall Street Journal reported earlier Thursday, without providing terms. Warner Bros. said late last year it planned to restructure into two divisions, one focused on the cable TV business and the other on streaming and studios.
The Paramount offer is being backed by the Ellison family, the newspaper reported. David Ellison’s father is Larry Ellison, co-founder of Oracle Corp. and the world’s second-richest person, with a fortune valued at $383 billion.
Paramount declined to comment. Warner Bros. didn’t immediately respond to a request for comment.
In addition to film and TV studios, Paramount owns a stable of cable and broadcast properties, including CBS and MTV, and the Paramount+ streaming service, Warner Bros., also a film and TV producer, likewise operates TV channels including CNN and HBO, as well as the HBO Max streaming business.
Shares of Warner Bros. rose as much as 27% to $15.97 in New York. Paramount fell more than 7% to $10.87.
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