A possible shake up in the entertainment industry is gaining attention as reports suggest that Paramount Skydance is preparing a plan to acquire Warner Bros Discovery. The update was first shared by an entertainment trade outlet in the United States, which cited people familiar with early discussions. According to the report, an investment group had been formed with sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi to support a $71 billion bid. It also said Paramount Skydance would provide about $50 billion, with the rest expected from the funds. The company, however, has called the involvement of these wealth funds “categorically inaccurate”.
Paramount Skydance is led by David Ellison, the son of Oracle cofounder Larry Ellison, who is also known to have close ties with the current United States administration. Warner Bros Discovery had earlier rejected a proposal from the Ellison family, which controls voting power at Paramount Skydance. Both companies did not respond to inquiries from a common news organisation. The report added that under the suggested structure, the wealth funds would hold small minority stakes and would each receive “an IP, a movie premiere, a movie shoot”. Warner Bros Discovery, which owns major entertainment brands including DC films, television studios, premium channels, news networks and gaming units, is considering several options as its television business faces a sharp decline.
The company confirmed in October that it is weighing separation plans, a full company deal or individual transactions involving its Warner Bros or Discovery Global divisions. A United States based news website reported that Paramount Skydance is the only company currently showing interest in a complete purchase and that Warner Bros Discovery wants to finalise a decision by the end of the year. The political climate is also influencing the process. Other potential bidders like Netflix and Comcast are reportedly evaluating possibilities, but any move by Comcast would face regulatory hurdles. The current administration has repeatedly criticised Comcast, which owns several major news outlets.
There are also concerns about concentrated media control. A professor at a leading university told a common news organisation that if Paramount Skydance, which already owns CBS, also gains control of CNN, “that would create an added civic risk”. He warned that placing two major news networks under one large conglomerate with strong political links could reduce independent reporting and limit diverse viewpoints. Shares of Paramount Skydance were up 1.7% in midday trading. Warner Bros Discovery climbed 2.8%, Comcast rose 0.5% and Netflix gained 3.5%.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
