Skydance Media Explores $70 Billion Warner Bros. Discovery Acquisition Following Paramount Takeover

David Ellison’s Skydance Media is reportedly eyeing a colossal acquisition of Warner Bros. Discovery (WBD), a move that comes mere weeks after completing its $8 billion takeover of Paramount Global. This potential $70 billion-plus deal, currently under consideration, signifies an aggressive push by Ellison to consolidate media assets amidst ongoing industry instability.

The timing of Skydance’s interest in WBD is critical, particularly as Warner Bros. Discovery prepares for a planned split into two entities—Warner Bros. (HBO Max and studios) and Discovery Global (TV networks)—by April 2026. Analysts suggest that moving now could preempt a bidding war for the highly coveted Warner Bros. streaming and studio assets post-split. By acquiring the entire company upfront, Skydance could secure key growth drivers like HBO Max and consolidate its streaming-first strategy, as noted by MoffettNathanson analyst Robert Fishman in a recent research note.

However, a Skydance-WBD merger faces substantial financial and regulatory obstacles. WBD currently holds an enterprise value of approximately $71 billion, largely due to significant debt. This high leverage is seen as a major impediment to a smooth acquisition, according to Kenneth Leon of CFRA Research, who issued a note on September 11.

Politically, the proposed merger has already drawn fire. Senator Elizabeth Warren (D-Massachusetts) publicly called for the deal to be blocked this week, citing concerns over a “dangerous concentration of power” within the media landscape. This opposition highlights the increased scrutiny such large-scale horizontal mergers are likely to face, especially compared to Skydance’s previous, less overlapping acquisition of Paramount. The recent approval of the Skydance-Paramount merger under the Trump administration, following concessions and alleged financial dealings, also adds a complex layer to potential regulatory reviews.

Despite the hurdles, the aggressive pursuit of WBD by Skydance reflects a broader industry trend towards consolidation, an outcome Warner Bros. Discovery CEO David Zaslav has openly supported, particularly anticipating a more favorable M&A environment under a second Trump administration.

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