Another seismic shift in the studio system may be on its way. The ink on the deal that joined David Ellison‘s Skydance with Paramount is barely dry, and already the new company is looking to acquire one of Hollywood’s oldest and most venerable studios. According to reports, Paramount Skydance is looking to acquire Warner Bros Discovery.
Warner Bros. stock is already jumping at the news, which, if it comes to fruition, would create one of the largest entertainment conglomerates in the world. Warner CEO David Zaslav has recently discussed splitting the company back into its component halves of Warner Bros. and Discovery, reversing the merger that occurred in 2022 when AT&T spun off Warner Entertainment and merged it with Discovery. However, the report indicates that the deal would be for the entire kit and caboodle of Warner Bros. Discovery. That includes Warner Bros. itself, HBO and the streaming service HBO Max, Discovery and its galaxy of cable channels, DC Comics and its associated intellectual property, and much more. Paramount itself now owns Paramount Pictures, CBS, Nickelodeon, MTV, Comedy Central, and the streaming service Paramount+. The bid is said to have the backing of the Ellison family, and will primarily be in cash.
What Hollywood Mergers and Acquisitions Have Happened Recently?
Mergers have long been a part of the movie business; back in 1935, Fox Film and Twentieth Century Pictures merged to form the now-iconic 20th Century Fox. However, in recent years, with tech conglomerates moving into show business and streaming disrupting the entire industry, changing corporate structures are part of the landscape. Disney has been one of the biggest movers and shakers over the past few decades, hoovering up Pixar, Marvel, and Lucasfilm. They made their biggest move yet when they acquired 20th Century Fox and its decades of films and intellectual properties in 2019. Not to be outdone, Amazon acquired one of the most acclaimed studios in Hollywood history in 2022 when it bought MGM (which was itself the result of a 1924 merger between Metro Pictures, Goldwyn Pictures, and Louis B. Mayer Pictures), folding it into Amazon MGM Studios. The latest shift saw Skydance take over troubled Paramount, the home of the Mission: Impossible, Star Trek, and Transformers franchises, among others.
Warner Bros. has been on a hot streak at the cineplex lately, with a number of their films, both franchise and original, topping the box office charts. Seven straight WB movies have opened at $40 million USD or more, including Superman, Weapons, Sinners, and A Minecraft Movie.
Paramount Skydance is reportedly in talks to acquire Warner Bros. Discovery.
via Collider