$71 Billion Paramount Skydance Bid Reportedly Leads Warner Bros. Discovery Acquisition Race, CNN's Future a Central Factor

Paramount Skydance has reportedly gained the "inside track" to acquire Warner Bros. Discovery (WBD), according to well-placed media executives. This development comes as multiple media giants, including Comcast and Netflix, submitted bids for WBD's assets, with Paramount Skydance's offer reportedly valued at up to $71 billion. The unique positioning of Paramount Skydance is largely attributed to the pivotal role of CNN, a Warner Bros. Discovery cable network with a historically contentious relationship with Donald Trump.

The Ellison family, led by Oracle co-founder Larry Ellison and his son David Ellison, the CEO of Paramount Skydance, is prepared to fully finance the potential acquisition. Warner Bros. Discovery CEO David Zaslav has reportedly sought a deal valuing the company at $30 per share, or approximately $70 billion. Paramount Skydance's previous offers, including one around $23.50 per share, were rejected, leading to a reported $71 billion bid, potentially backed by Middle Eastern sovereign wealth funds.

A critical factor in Paramount Skydance's favor is its perceived ability to navigate regulatory approvals, partly due to Larry Ellison's connections to the Trump administration. According to reports, the Ellisons are uniquely interested in acquiring CNN as part of the deal, viewing it as a profitable business with global reach despite declining linear TV viewership. There are indications that the Ellisons might seek to "neutralize" CNN's editorial stance, with suggestions that Bari Weiss's editorial oversight, currently at CBS, could extend to CNN.

In contrast, rival bidders Comcast and Netflix have primarily focused their offers on WBD's film and streaming assets, such as Warner Bros. studio and HBO Max, rather than the entire company. Both companies face significant regulatory hurdles and potential political opposition, particularly from a Trump administration, due to concerns over market concentration and past media coverage. Analysts suggest that regulatory reviews for Comcast and Netflix could be lengthy and complex, unlike the potentially smoother path for Paramount Skydance.

Should Paramount Skydance succeed, the merger would unite major Hollywood studios, streaming platforms like HBO Max and Paramount+, and news operations including CNN and CBS News. This consolidation would reshape the entertainment industry, creating a formidable entity with significant market share in film distribution and sports rights. The Ellisons reportedly aim to enhance CNN's profitability by integrating it with CBS's news infrastructure and accelerating its digital transition.