Paramount Skydance prepares an offer to buy Warner Bros. Discovery

Paramount Skydance It seeks to be the largest in the film industry.

Or at least that is what we deduce for its most recent move. According to information from the Wall Street Journal, Paramount Skydance prepares an offer to buy Warner Bros. Discoverythat It would be mostly in cashaccording to anonymous nearby sources cited by the WSJ, which could mean the union of two Hollywood historical studies and one possible transformation or redefinition of the industry.

The offer is backed by the Ellison family, including its director, David Ellison, and his father, billionaire Larry Ellison, which is placed in second place in the World multimillionaire list, with a net worth that exceeds $ 360,000 million dollars.

The Ellison family has been fundamental to finance the expansion of Skydance. Analysts have indicated that any acquisition of Warner Bros. Discovery would probably require important private financing, given the size of the agreement and the limitations of the Skydance Paramount balance.

The proposal would seek Acquire all WBD assets: From its Traditional cable networks, until its Warner Bros cinematographic study.y streaming platforms.

The surprise and bold offer, which occurs just a few weeks after the purchase that Skydance made of global paramount for $ 8.4 billion dollars was formalized, would mean the union of some of the most popular and known brands under the same roof, gathering the superheroes of DC Comics Like Superman, and spongeBob Nickelodeonand science fiction franchises as The Matrix y Star Trekand two important news chains such as CNN and CBS News, in addition to the fusion of streamings HBO Max y Paramount+.

In addition, it is presented at a key moment for WBD, which last June announced that it would implement an internal restructuring that will divide its operations into two large areas: one dedicated to streaming and content production (WB, HBO, HBO Max), and another focused on traditional television (Warner TV chains, and digital brands such as Discovery+, Bleacher Report, CNN).

As part of this restructuring, a new HBO Max rebranding was chosen, and returned to the name with which the streaming service in 2020 debuted.

The WSJ reported that no offer has been presented and the plans could still fail.

Even so, the actions of Warner Bros. Discovery rose up to 30% after the news, while those of Paramount rose 15%.

The market value of Paramount Skydance was $ 16.4 billion before knowing the possible offer, and that of Warner Bros. Discovery was around $ 30,000 million. While Warner Bros. Discovery has worked to reduce its debt, it still maintains a net debt of approximately $ 30,000 million, a figure that, it has been said, will decrease significantly by the end of the year.

After the fusion of Paramount with Skydance Media, David Ellison said that he would seek to strengthen the company's film offer and its streaming ambitions while reducing costs and restructuring its Paramount+service, which is going through difficulties.

It is expected that, due to the heritage of the Ellison,

The other side of the currency

The other side of the currency would be more or less like this:

The fusion of these two immense companies, It would reduce the number of great independent studies, giving the merged entity a higher market share in premieres in film rooms, domestic entertainment and content licenses. The fusion of cable businesses of both companies could increase their negotiation power, which could result in higher advertising and transmission rates with cable suppliers.