Sometimes a company just can't catch a break. Warner Bros. Discovery (WBD) has already cycled through three different owners in seven years, and now it's about to do it all over again. Except this time, the stakes are considerably higher—and so are the bidders lining up at the door.
First-round offers are landing Thursday for the HBO and DC Comics parent, and the list of suitors reads like a who's who of entertainment power players: Paramount Skydance (PARA), Comcast (CMCSA), and perhaps most surprising of all, Netflix (NFLX). Yes, that Netflix—the streaming giant that has spent years studiously avoiding megadeals is now contemplating one of the biggest acquisitions in Hollywood history.
The Man Who Started It All
If you're looking for someone to blame (or credit) for this feeding frenzy, point your finger at David Ellison. The 42-year-old tech scion barely had time to unpack his boxes after closing his $8 billion Paramount takeover before he reportedly fired off three separate bids for Warner Bros. Discovery. His most aggressive offer hit $23.50 per share—a staggering 90% premium to where the stock traded before he came knocking.
Each bid was rebuffed, but Ellison didn't take the hint. Instead, he doubled down, lining up conversations with Gulf sovereign wealth funds and reportedly leveraging his family's considerable political connections. His billionaire father, Larry Ellison, remains one of President Donald Trump's most influential donors, which isn't exactly irrelevant when you're pursuing a deal that's certain to attract regulatory scrutiny.
Speaking of which: Paramount Skydance's new chief legal officer, Makan Delrahim, previously served as Trump's antitrust chief. In a bidding war where regulatory approval could make or break the deal, those Washington ties matter.
According to Axios, Warner Bros. Discovery isn't satisfied with Ellison's latest $23.50-per-share bid. The company reportedly wants Paramount Skydance to bump it up to around $30 per share, which would value the entire enterprise at over $74 billion. That's a lot of Batman movies.
The Competition Heats Up
Ellison's relentless pursuit has done something remarkable: it's dragged traditional rivals off the bench and into the game.
Comcast sees an opportunity to attach Warner's film studio and HBO Max to NBCUniversal, creating a content powerhouse that could go toe-to-toe with Apple's (AAPL) AppleTV and Amazon's (AMZN) Prime Video. The logic is sound, but there's a problem. Comcast is already carrying about $99 billion in debt, and its stock is down 28% this year. That doesn't leave much room for an escalating bidding war, especially if Ellison keeps pushing prices higher.
Which brings us to the wild card: Netflix. The company has never done anything remotely close to a deal of this magnitude. Its entire acquisition strategy to date has been modest, almost cautious. But the appeal of Warner Bros. Discovery is undeniable. Imagine adding Batman, Harry Potter, and Game of Thrones to Netflix's already dominant content machine. With only $17 billion in borrowings and a stock that's up 24% in 2025, Netflix has both the balance sheet and the market momentum to make a serious run at this.
For now, Paramount Skydance is seen as the front-runner. Warner Bros. Discovery's board is expected to reach a final decision by Christmas. In the meantime, the company is working to spin off its cable networks business from the rest of its operations by next year—potentially sweetening the deal for whoever ends up winning.
The Stock Tells the Story
Warner Bros. Discovery shares have been on a wild ride. Since Ellison first expressed interest, the stock has almost doubled in value. On Wednesday, shares closed at $23.09, down slightly for the day, but they ticked up 1.2% in premarket trading Thursday. The company's market cap now sits at roughly $58 billion.
Market data shows exceptionally strong momentum for the stock, though value metrics remain weak with moderate growth characteristics. The price trend has been positive across short, medium, and long-term timeframes—exactly what you'd expect when multiple deep-pocketed buyers are circling.
It's a remarkable turnaround for a company that's been through the merger wringer more times than most. Warner Bros. Discovery has already had three owners in seven years, and now it's about to get a fourth. The only question left is which bidder will be willing to pay the most—and whether Warner Bros. Discovery's board thinks any of them are paying enough.
