The dust has barely settled on the Paramount Skydance merger but the newly merged media company reportedly has another merger in its sights. The David Ellison-led company reportedly wants to buy Warner Bros. Discovery, which itself is currently in the process of breaking itself up into smaller media companies.

Here’s what you need to know about reports of a Paramount Skydance-Warner Bros. Discovery merger, including the prominent media properties Paramount Skydance would own if the deal went through.

What’s happened?

Yesterday, the Wall Street Journal reported that Paramount Skydance was preparing a bid to buy its rival Warner Bros. Discovery, citing anonymous sources. CNBC and other outlets also reported the rumored plan.

The deal, according to WSJ, would be a majority all-cash one that would bid for the entirety of Warner Bros. Discovery, including its famed movie studio and its myriad cable networks. It would also include the HBO Max streaming service.

Fast Company has reached out to Warner Bros. Discovery and Paramount Skydance for comment.

If the deal were to be approved by Warner Bros. Discovery and its shareholders, it would make the combined media giants one of the largest entities ever in the U.S. media space.

It would also come at a time when the media landscape continues to go through massive shifts as streaming continues its disruption of both the cable and network television landscape and Hollywood and the movie theater experience.

The consolidation of the two companies would also, somewhat ironically, stymie Warner Bros. Discovery’s stated efforts to de-consolidate itself, and thus the industry. In 2022, WarnerMedia and Discovery merged, but by 2024, the newly formed Warner Bros. Discovery announced plans to uncouple many of the company’s assets.

A merger between Warner Bros. Discovery and Paramount Skydance would put an end to that decoupling, as Paramount Skydance is reportedly set to acquire all of Warner Bros. Discovery’s current assets.

A ticking clock

However, any such merger deal would be under a ticking clock.

That’s because Warner Bros. Discovery has said that it expects to split itself into two publicly traded companies by April 2026, just eight months from now. Warner Bros. Discovery intends to separate its media assets by siloing its streaming and Hollywood studio divisions into a new Streaming & Studios company and putting its cable networks into another Global Networks company. 

“By operating as two distinct and optimized companies in the future, we are empowering these iconic brands with the sharper focus and strategic flexibility they need to compete most effectively in today’s evolving media landscape,” Warner Bros. Discovery CEO David Zaslav said in a June announcement.

Paramount Skydance is led by CEO David Ellison, son of tech billionaire Larry Ellison, who reportedly wants all of Warner Bros. Discovery.

Of course, even if Paramount Skydance manages to convince Warner Bros. Discovery and its investors to stop the split and instead sell, there is no guarantee the merger would go through.

Federal regulators would likely have deep concerns over the merger and the consolidation of two of the biggest media companies in the world.

What IP and assets would a combined Paramount Skydance-Warner Bros. Discovery own?

If the merger were to go through, the newly merged Paramount Skydance-Warner Bros. Discovery would own many of the most high-profile, well-known television and film assets in the world. These include those currently owned by Paramount Skydance, which include:

• Paramount Pictures
• Paramount Television Studios
• Nickelodeon Movies
• Paramount+
• Pluto TV
• BET
• CBS
• CBS Studios
• CBS News
• Comedy Central
• Nickelodeon
• Showtime
• VH1

Additionally, the newly formed company would own all of Warner Bros. Discovery’s assets, which include:

• Warner Bros. Pictures
• Warner Bros. Television Studios
• Warner Bros. Home Entertainment
• DC Studios
• Turner Entertainment Co.
• Turner Classic Movies
• New Line Cinema
• Animal Planet
• Cartoon Network
• HBO
• HBO Max
• Cinemax
• CNN
• Discovery Channel
• Travel Channel
• TBS
• TNT
• TNT Sports
• Warner Bros. Theme Parks
• Warner Bros. Games
• DC Comics

How have the stock prices of both companies reacted to the news? 

Very well. When news of Paramount Skydance’s interest in Warner Bros. Discovery broke yesterday, each company’s stock price soared.

Shares in Warner Bros. Discovery, Inc. (Nasdaq: WBD) closed nearly 29% higher yesterday. Today, WBD shares are up another 8% to $17.52 as of the time of this writing. 

Shares in Paramount Skydance Corporation (Nasdaq: PSKY) closed more than 15.5% higher yesterday on the news. Currently, PSKY shares are up another $5.3% to around $18.40 per share today.

At today’s stock prices, Warner Bros. Discovery is worth around $43 billion, and Paramount Skydance is worth around $20 billion. It is unknown how much Paramount Skydance would offer for Warner Bros. Discovery.