By Gavin Boyle
In a move that would transform the entertainment industry, Paramount Skydance owner Larry Ellison disclosed his interest in acquiring the entirety of Warner Bros. Discovery.
“Ellison has been looking at Warner Bros. for a while,” an insider close to Ellison told Deadline. “Nothing new there, he’s just taking a closer look, assessing the pros and cons.”
While many expected Warner Bros. to begin fielding acquisitions after it splits its streaming and studios from the failing linear TV business, it was surprising to receive an inquiry from Paramount Skydance only five weeks after the Paramount and Skydance merger closed. Making the move now, instead of after the Warner Bros. Discovery split takes place, though, could beat out a potential bidding war with cash-flush companies like Apple, Amazon and even Netflix.
Related: Warner Bros. Discovery’s Split Explained
“By acting now, [Paramount Skydance] positions itself to secure the entire company before rivals can cherry-pick the most attractive assets,” MoffetNathanson analyst Robert Fishman explained, per Variety.
Even if the potential deal avoids rival bidders, it could face government scrutiny over anti-trust laws. A combined Paramount Skydance and Warner Bros. Discovery would bring many of the entertainment industry’s most popular franchises under the same roof including Harry Potter, DC and Looney Tunes, from Warner Bros.’s side, to Transformers, Star Trek and SpongeBob SquarePants, from Paramount.
While the FCC would technically not need to be involved in the merge, due to Warner Bros. Discovery not holding any broadcast licenses – the hurdle that caused the Paramount Skydance deal to drag on for so long – the nature of the deal may still face scrutiny from the organization. Rivals missing out on the deal may also lobby with government agencies to ensure the path to complete the deal would not be without major difficulties.
“The DOJ will want to investigate whether the merger could lead to higher prices for consumers, reduce bargaining power for creators and diminish content diversity,” said Andre Barlow, an antitrust attorney in Washington. “At the same time, the Trump administration’s DOJ Antitrust Division could be more lenient toward the deal compared to the prior Biden era’s aggressive stance.”
Paramount has already found itself in the good graces of President Donald Trump after hiring an ombudsman to research any complaints of bias against the company, while also promising to never bring back a diversity hire program. These changes helped smooth out the merger details, allowing Paramount Skydance to become a single entity.
While this major merger is still in its infancy, it could signal a new and exciting era of entertainment as two legacy studios combine into one, providing it with the potential to bring together the top talent in the industry to create more high-quality shows and movies than ever.
Read Next: What the Paramount-Skydance Merger Means for You
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