WBD Shares Soar Over 25% on Ellison-Backed Paramount Takeover Report

Lead: Warner Bros. Discovery stock jumped more than 25% in early trading Thursday after a report that Paramount Skydance, backed by the Ellison family, is preparing a takeover bid for the media giant.

Nut Graf: The surge reflects investor enthusiasm over potential consolidation in the entertainment sector and comes as Warner Bros. Discovery (WBD) readies a strategic spin-off of its cable networks by next April, underscoring shifting dynamics in the industry.

Takeover Speculation Drives Rally

• Bid Origins: The Wall Street Journal reported that Paramount Skydance, led by David Ellison with backing from his father, Oracle co-founder Larry Ellison, is preparing an all-cash offer for Warner Bros. Discovery’s film studio, streaming assets and cable channels.
• Market Reaction: Shares climbed over 25% Thursday morning, extending a rally that saw WBD trade around $15.09-up 20% by midday-on heavy volume.
• Investor Implications: Analysts view the potential deal as a catalyst for further consolidation among studios and streamers, and believe Netflix, Amazon and Comcast could also emerge as bidders.

Strategic Context and Financial Position

Warner Bros. Discovery has embarked on a multi-year debt-reduction plan, trimming liabilities by roughly $20 billion, while boosting operating margins across its studios and streaming divisions. CEO David Zaslav has outlined a plan to complete the network spin-off by April 2026, aiming to unlock value and streamline operations.

Next Steps and Outlook

Paramount and Skydance spokespeople declined to comment on the takeover chatter. Market watchers will be closely monitoring formal filings and any regulatory hurdles, with a proposed timeline for bid submission expected in the coming weeks. Continued M&A activity could reshape the competitive landscape, fueling further volatility in WBD shares.