Paramount Skydance talking to Apollo, buyout firms to join possible $60B Warner Bros. Discovery bid: sources
News Summary
Paramount Skydance chief David Ellison is in talks with major private equity firms, including Apollo Global Management, to join his possible bid to acquire Warner Bros. Discovery (WBD) in a potential $60 billion megadeal, sources indicate. Apollo, which previously made a $26 billion debt-fueled offer for Paramount in spring 2024 before losing to Skydance, appears closest to assisting Ellison, while Blackstone has investigated but is not currently interested in a financing role. David Ellison is seeking fresh capital as his father, Larry Ellison of Oracle, reportedly has limited appetite for media deals. Meanwhile, WBD CEO David Zaslav is pushing ahead with plans to separate WBD into two units and has hired Goldman Sachs to find other potential buyers, seeking over $30 a share for the streaming and studio unit, significantly higher than the Ellison's leaked $22-$24 a share for all of WBD. Funding questions, WBD's proposed split, and the Trump administration's stance on foreign capital in major U.S. media acquisitions complicate the potential deal.
Background
In 2025, the U.S. media industry is in a state of flux with ongoing consolidation. David Ellison's Skydance recently completed an $8 billion acquisition of Paramount in August 2024, a 13-month saga that concluded under the Trump administration. This news emerges just a month after the Paramount deal, with David Ellison reportedly exploring an all-cash bid for Warner Bros. Discovery (WBD), which owns major assets like Warner Bros. studio, HBO, and CNN. The scale and complexity of this potential transaction underscore the intense competition among media giants to consolidate market share and content libraries in the streaming era.
In-Depth AI Insights
Is David Ellison likely to successfully raise the colossal funds required for a WBD acquisition? Answer: It appears unlikely without significant shifts. - The article explicitly states David Ellison needs tens of billions in cash, yet Paramount Skydance only has around $2.75 billion on hand. - Despite Larry Ellison's surging wealth, insiders suggest he has limited appetite for media deals, and analysts doubt he would sell $60 billion in Oracle stock to fund this bid. - While private equity firms like Apollo could contribute, bridging a $60 billion gap requires substantial backing from multiple major investors, further complicated by WBD CEO Zaslav's demand for a significant premium. How might this potential media mega-merger impact the competitive landscape and what would be the Trump administration's stance? Answer: If successful, it would further intensify market concentration and likely face stringent scrutiny. - The media industry is undergoing massive consolidation, and an acquisition of WBD would create a formidable player with an even stronger content library and distribution network, exerting immense pressure on competitors like Netflix and Disney+. - The Trump administration generally takes a cautious, if not skeptical, view of large mergers, especially those involving national security and foreign capital. The mention of Redbird Capital's ties to China and Gulf States could raise concerns about "foreign cash" acquiring major U.S. media companies. The hiring of Makan Delrahim, a former Trump DOJ antitrust chief, may be intended to navigate these potential hurdles but also signals the inevitability of scrutiny. What are the deeper strategic implications behind David Ellison's acquisition of Free Press and WBD's rumored split plan? Answer: Ellison's strategy might involve diversifying content and distribution, while Zaslav appears to be optimizing asset value in response to acquisition threats. - Ellison's high-priced acquisition of the right-leaning Free Press and appointing its editor-in-chief to CBS indicates an intent to not only control traditional entertainment assets but also to secure a foothold in news and political commentary, potentially aiming to capitalize on specific audience segments or influence public discourse. - WBD CEO Zaslav's plan to separate growth businesses (streaming and studios) from traditional cable properties is a classic