September 13, 2025, 5:44 am | Read time: 3 minutes
Recently, Paramount merged with Skydance, and now the new company plans to acquire another giant in the media industry: Warner Bros. Discovery. This could have far-reaching consequences for the streaming market.
Paramount Plans Acquisition Offer for Warner Bros. Discovery
As reported by the Wall Street Journal, Paramount Skydance is preparing a bid for Warner Bros. Discovery, primarily financed in cash. WSJ cites information from people familiar with the matter. The offer is said to encompass the entire company, including cable channels, streaming services, and the well-known film studio.
According to the report, the Ellison family supports the acquisition plans. Since the merger of Paramount with Skydance Media, company head David Ellison has been exploring opportunities to expand the company’s film portfolio and streaming strategy. The goal: stronger competition for Netflix and Disney in the global streaming market.
Warner Bros. Discovery actually plans to split into two divisions by 2026: Streaming & Studios—with Warner Bros. films, HBO, and HBO Max—and Global Networks, which includes Discovery and various cable channels. An acquisition by Paramount would disrupt these plans and merge the entire offering with its own services, including Paramount+.
Possible Consequences of the Acquisition for Streaming Customers
Subscribers could feel the impact. Industry experts anticipate a consolidation of platforms: Paramount+, HBO Max, and Discovery+ could eventually be merged or bundled. This would create one of the largest and most diverse streaming offerings ever—from blockbuster films to high-quality HBO series to Discovery’s reality formats.
However, new pricing structures are likely to follow. Paramount Skydance has already announced plans to save 2 billion U.S. dollars. The cost-cutting measures are expected to continue even after the acquisition of Warner Bros. Discovery—especially since operating multiple streaming platforms simultaneously is inefficient and costly. A comprehensive offering would mean more content in one subscription for customers. But: Less competition in the market could also lead to higher prices.
However, Paramount Skydance and Warner Bros. Discovery could exert more pressure on market leaders Netflix, Disney, and Amazon Prime Video after a merger. Netflix alone has a market capitalization of more than 511 billion USD, Disney nearly 210 billion USD. In comparison, Paramount Skydance is currently valued at 19 billion USD. Warner Bros. Discovery is worth more than 40 billion USD.
The deal is not yet sealed. Regulatory authorities in the U.S. and abroad will closely scrutinize the proposal. Negotiations between Paramount and Skydance have also been prolonged and, at times, threatened to come to a complete halt.