Paramount+ sign in the Times Square area of New York, USA, on Thursday, December 21st, 2023.
Gabby Jones | Bloomberg | Getty Images
David Ellison appears to be buying up the media empire.
The newly minted Paramount Skydance CEO and chairman tapped the investment bank to prepare a take-out offer for Warner Bros Discovery, according to people familiar with the issue that spoke about the anonymous status to discuss the private transaction.
According to familiar people, Warner Bros Discovery had not yet received the offer as of Thursday. However, the company’s shares rose almost 30% on Thursday afternoon, marking the highest trading day for the stock.
Representatives of Paramount and Warner Bros. Discovery declined to comment.
Bringing the Warner Bros discovery to the fold will increase the growth list of Ellison’s franchise acquisition and sports media rights. Announcing that it will split into two entities in June, WBD has a suite of desirable assets. Add them to Paramount’s intellectual property collection, and Ellison can have a content giant in his hands.
“WBD’s bids will solidify the often overlooked value of a portfolio of assets that are overwhelmed by the balance sheet,” Moffettnathanson analyst Robert Fishman told CNBC.
A mountain of content
Already in-house, Paramount boasts films and TV shows from franchises such as Star Trek, Transformers, SpongeBob Square, Teenage Mutant Ninja Turtles, Por Patrol, Scream and Mission Impossible.
Recently, we have expanded our video game-based IP. Sonic has expanded its own billion-dollar franchise, Sonic the Hedgehog, and has the right to create distribution rights for Call of Duty theatrical film and legendary street fighter adaptations.
Warner Bros Discovery has a large library of major franchises, including DC Superhero, Lord of the Rings, Game of Thrones, and Harry Potter. There are also legacy comics such as Scooby-Doo, Looney Tunes, and Tom and Jerry. He is also a distributor of the Legendary Dune franchise and Godzilla and King Kong films.
Last year, Warner Bros. was the second-highest gross studio at the global box office, and Paramount was the fifth-highest studio, according to data from ComScore.
In addition to bolstering Paramount’s theatrical slate, Warner Bros. Discovery’s streaming service HBO Max has counted more than 125 million subscribers as of the end of the second quarter. Paramount+ currently has around 77 million streaming users.
Chasing ESPN
The Paramount Ski Dance merger led Ellison to secure a $7.7 billion seven-year contract and become the exclusive US home for TKO Group’s UFC Mixed Martial Arts Organization. The agreement means that the UFC will stop the pay-per-view model, and events will be available directly on Paramount+ subscribers, and in some cases CBS.
Sports rights are lacking and are only available if previous transactions expire. apple Already expected to be home to Formula 1, Major League Baseball is waiting until deals expire to reorganize the media package after the 2028 season. That is, Paramount has few other top shelf sports assets to bid and earn in the medium term.
Meanwhile, Warner Bros Discovery has the right to broadcast games from the National Hockey League, Major League Baseball and March Madness Basketball, with the French Open and NASCAR.
A potential partnership between Paramount Skydance and WBD will expand exponentially to Paramount’s intellectual property library and the arsenal of sports content that will help them compete. Disney ESPN.
