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Paramount Skydance, led by CEO David Ellison, plans to retain much of Warner Bros Discovery’s core operations if the two media giants merge, Bloomberg News reported on Monday. According to the report, Ellison intends to keep creative teams from both studios intact while streamlining marketing and distribution functions to enhance operational efficiency and profitability.
Reuters could not independently verify the Bloomberg report, and both companies declined to comment on the matter. The update follows Reuters’ earlier report that Warner Bros Discovery’s board rejected Paramount’s nearly $60 billion takeover offer last week.
Sources cited by Bloomberg revealed that no decisions have been finalized regarding potential sales of real estate assets linked to either company. However, Ellison’s proposed plan includes merging Warner Bros’ HBO Max streaming service into Paramount’s existing Paramount+ platform, creating a unified and stronger streaming presence to compete with industry leaders like Netflix and Disney+.
Additionally, there are currently no plans to sell or spin off any of the cable networks owned by the companies. The report also suggested that Paramount’s CBS News could potentially share resources and collaborate with Warner Bros Discovery’s CNN, allowing for cost savings and expanded news coverage capabilities.
Ellison reportedly aims to harness advanced technologies and artificial intelligence to boost production output, targeting the release of up to 30 films annually across the combined studios. Analysts note that Ellison’s financial backing and strategic connections in Washington position him as a strong contender in what could be one of the largest media mergers in recent years.
Warner Bros, the powerhouse behind blockbuster franchises like Harry Potter and DC Comics, has signaled its openness to exploring sale options, with Paramount Skydance emerging as the leading bidder in the evolving entertainment industry landscape.
