Paramount Skydance Looking To Acquire Warner Bros. Discovery Amid Split

Paramount Skydance is working with an investment bank as it prepares an offer for Warner Bros. Discovery, according to people familiar with the matter.

Warner Bros. Discovery had yet to receive an offer as of Thursday, according to people familiar with the matter, who spoke on the condition of anonymity to discuss nonpublic dealings. A bid could come as early as next week, CNBC's David Faber reported Thursday.

Shares of Warner Bros. Discovery soared more than 25% on Thursday after an initial report from the the Wall Street Journal that the recently merged Paramount Skydance was preparing a takeover bid.

Representatives for Paramount and Warner Bros. Discovery declined to comment.

Shares of Paramount Skydance were up roughly 8% in afternoon trading.

Warner Bros. Discovery recently announced plans to separate its global TV networks business from its streaming business and studios. The Journal reported Thursday the Paramount Skydance bid would be an all-cash offer for the entirety of WBD.

Earlier this week, WBD CEO David Zaslav said at an investor conference that the planned separation would likely be completed by April. The streaming and studio assets would be renamed Warner Bros., while the global TV networks business — which will own a suite of pay TV networks including TNT and CNN — will be Discovery Global.

While WBD executives said in June that each company would be "free and clear" to do deals following the split, a bid before the separation would have to be for the entire company, one of the people said.

Media Moves

The media industry has been navigating a transformation as streaming has upended the pay TV bundle, a longtime cash cow for TV and entertainment companies.

A merger between Paramount Skydance and Warner Bros. Discovery would create a media behemoth with a huge portfolio of pay TV networks, a sprawling range of sports rights and two major film studios.

Paramount Skydance owns broadcast network CBS, as well as pay TV networks like BET, MTV and Nickelodeon, and streaming service Paramount+. Its film studio is known for movies like "The Godfather," "Top Gun," and "Forrest Gump."

With the exception of a broadcast TV network, WBD has similar assets — with networks like CNN and TNT, as well as HBO and streaming service HBO Max. Its Warner Bros. film studio also has a historic track record, and owns the intellectual property to franchises like "Harry Potter," DC Comics and "The Lord of the Rings."

Both companies have a long list of major sports rights, too, the marquee content for all traditional TV and streaming platforms. A merger would put the likes of the NFL, MLB, an array of college football and basketball, and other major sports under one roof.

Media executives and experts have expected consolidation could be coming to the industry.

Zaslav has said publicly for some time that media companies need to consolidate. During an earnings call in November, shortly after Donald Trump was elected as president, Zaslav said a new administration could usher in more dealmaking.

However, in recent months, some media companies have moved toward separation. Late last year, Comcast announced that its NBCUniversal would spin off its pay TV networks, which includes CNBC and MSNBC, into a separate, publicly traded entity. Months later, WBD announced it would make the same move.

Paramount Skydance is the result of an $8 billion merger that was announced last year and received regulatory approval in August to move forward after a lengthy delay.

The Federal Communications Commission cleared the way for the merger weeks after Paramount agreed to pay $16 million to Trump to settle a lawsuit he filed against the company over the editing of an interview on CBS's "60 Minutes" with former Vice President Kamala Harris.

At the time of deal's approval, FCC Chairman Brendan Carr said in a statement that he welcomed "Skydance's commitment to make significant changes at the once storied CBS broadcast network."

The company is looking to cut more than $2 billion in costs, and layoffs are expected to continue. Last week, Paramount SKydance sent a memo to its employees saying they were expected to return to the office five days a week in the new year, or seek a buyout.

A lot has changed since the merger, which was backed by RedBird Capital Partners. The company has done a slew of deals under the leadership of David Ellison, son of Oracle founder and multibillionaire Larry Ellison, including acquiring the U.S. rights to TKO Group's UFC for seven years, beginning in 2026.

On Wednesday, Larry Ellison became more than $100 billion richer after software company Oracle issued growth projections that dramatically lifted the company's stock.

Big Change Coming To Warner Bros. Discovery In 2026, How It Impacts Cartoon Network?

As some readers are aware, Warner Bros. Discovery will be splitting into two separate companies with Cartoon Network or better yet the cable portion being owned by Discovery. Shows like Teen Titans GO! and The Wonderfully Weird World Of Gumball remaining with Warner Bros.

The bloated Discovery which will inherit the merged company's debt gets a 20% stake in Warner Bros. this wouldn't give it control but rather improve its balance sheet. With the merged company's CFO taking Discovery by the horns several changes await Cartoon Network.

Continued content investment under Cartoon Network Studios/Warner Bros. Animation 

If you look at Cartoon Network back in the 90s to early 2010s, it had always had a pipeline of animation from Ben 10, The Grim Adventures Of Billy And Mandy and Secret Saturday. They even had an ongoing slate of content from Looney Tunes, Scooby-Doo and Tom And Jerry.

Now consumers don't get much Looney Tunes, Scooby-Doo and Tom And Jerry, and to top it off Warner Bros. Discovery is only interested in capitalization. They've got Batman: Caped Crusader on Amazon Prime Video followed by The Wonderfully Weird World Of Gumball on Hulu. 

Before consumers would have Cartoon Network and HBO Max both of which are owned by Warner Bros. Discovery for all this content. The push to have these shows on multiple platforms has caused division amongst viewers, not everyone that's subscribed to HBO Max has or can afford Hulu. 

The future of shows like CN To The Rescue 

Warner Bros. Discovery had been curating short form content within some of the markets Cartoon Network operates particularly Africa and these include CN To The Rescue, My Cartoon Friend and Cartoon Network Dance Challenge. Does that stop once Cartoon Network goes to Discovery perhaps?

Discovery will be handling all the debt and with the merged company's chief financial officer (CFO) getting a front seat (CEO) within this company. One can only assume the next course of action post the split would be content reduction.

The only reason Cartoon Network in Africa has all that local content and is what it is today is due to Warner Bros. Discovery Global will most likely follow a similar regime as seen with Amazon Prime Video in Africa and soon Paramount Global by halting their local operations.

The viability of Warner's linear assets under Discovery 

Aside from Cartoon Network, Discovery Global would also be distributing Cartoonito and Boing in Africa. The fear for some is whether Discovery would have enough content to accommodate these brands cause the likely scenario would be closing or selling some channels.

Discovery Global while in the kids space in the US through Discovery Family has very minimal presence and Cartoon Network may not really fit preposition as they're a factual brand above everything else. If they are retaining Cartoon Network and Cartoonito they could just alter the lineup. 

As mentioned, we are expecting them to close local operations, reduce their reliance on Warner Bros (affecting shows like Teen Titans GO! and Batwheels) and priorities on third party shows.

Could MultiChoice Be Unbundling Its DStv Premium Service Perhaps?

Canal+ is currently in the process of acquiring MultiChoice with the deal expected to close in October. The French broadcaster had promised that major changes would be awaiting consumers before the year ends and this may have to do the upcoming shakeup awaiting DStv consumers.

A few months ago, it was reported that MultiChoice similar to its potential new owners is exploring the possibility of unbundling it's DStv offering particularly SuperSport. This would give DStv Premium consumers for starters the chance to pay a reduced rate for M-Net and Discovery Channel.

This would reduce the rate of cancellations and honestly it could even persuade existing consumers to bundle Showmax. For sometime, most consumers were skeptical about paying for both services and now that the offering is halved it could persuade some folks to resubscribe.

Of course, something that MultiChoice has yet to address is the potential implications it has to existing DStv consumers particularly premium.

As it is, MultiChoice currently has under 1.6 million premium subscribers (down from 1.8 million subscribers) and with a lightweight version of the service makes them more prune to cancellations. Especially now that channels like Disney Channel and HGTV are accessible on lower packages.

DStv's mass market consumers which comprise of Family to Easyview consumers will likely remain intact as the rates for unbundled package is expected to cost a lot more. Besides that, the consumer base for this market is much wider than that of premium.

If anything, MultiChoice could as well launch a package which excludes Mzansi Magic, M-Net and a couple of other premium channels but with increased competition from Netflix that seems unlikely. What this unbundled offering could do is make MultiChoice reduce their linear portfolio.

Last year, they had merged M-Net's Me and 1Magic to form 1Max only for that to shut down and merge with Showmax. Prior to that, Disney had shuttered both Disney XD and the FOX channels in Africa with the content folded under Disney Channel and Disney+.

Competition Tribunal Approve eMedia Holdings Acquisition Of eMedia Investments

The Competition Tribunal has granted unconditional approval for eMedia Holdings (EMH) to proceed with its acquisition plan, which aims to boost its stake in eMedia Investments (EMI).

This merger is a key part of a broader initiative that will enable eMedia shares to be distributed among Remgro’s shareholders. EMH anticipates that this move will provide it with greater control over EMI’s strategic direction while enhancing the liquidity of its stock.

The approval follows a recommendation from the Competition Commission, which indicated that the transaction would not significantly hinder competition within any market. Once the deal is finalised, EMH will have complete authority over EMI.

eMedia Investments owns several entities, including E-tv, Platco Digital, E-sat TV, Yired, SASANI Studios, and eMedia Properties, with Platco Digital managing the satellite service Openview.

EMH is publicly traded on the Johannesburg Stock Exchange and is entirely controlled by Hosken Consolidated Investments (HCI). The Commission highlighted that EMH and HCI have diverse investments spanning multiple sectors, such as hospitality, media, transportation, energy, technology, and real estate.

In 2000, a restructuring of the Rembrandt Group led to the formation of VenFin, a holding company that gained joint control of EMI with EMH. Technology investments were assigned to VenFin during this restructuring, while traditional investments remained under Remgro’s control.

Remgro is a South African investment holding company listed on the JSE. It has interests in various sectors, including healthcare, consumer goods, insurance, industry, infrastructure, media, and sports.

According to the Competition Commission, the proposed merger is unlikely to substantially reduce or obstruct competition, as it is described as an internal restructuring with no significant public interest issues.

In their documentation outlining the transaction, eMedia clarified that EMH currently owns approximately 67.69% of EMI, while VenFin holds the remaining shares. Under the new agreement, VenFin will exchange its EMI shares for shares in EMH, which it is obligated to distribute to Remgro’s shareholders immediately.

Should VenFin or Remgro neglect to distribute the shares, EMH retains the right to repurchase them for a total cash amount up to US$3.3 million.

eMedia has stated that this merger will significantly increase EMH’s scale by consolidating complete ownership of EMI under the publicly listed company, ensuring that EMH has both independent and comprehensive control over EMI’s future strategic objectives. Furthermore, the transaction aims to increase the percentage of EMH N shares held by the public, thereby enhancing market liquidity and availability.

TLNovelas Slated To Debut Supernatural Series "Love To Death" For Consumers Across Africa

TLNovelas is launching a new original series that dives into the supernatural called Love To Death (Amar A Muerte). This will be the second series TLNovelas is looking to rollout in the month of November following It Had To Be You.

Starring Angelique Boyer, Alexis Ayala and Michel Brown in the leading roles, Amar a Muerte is a love story of crossed fates and second chances that explores the mystery of life after death. A media magnate (Ayala) is assassinated on his wedding day at the same time a hitman in the U.S., known as “El Chino Valdés” (Brown), is executed in the electric chair. The magnate reincarnates in the body of the hired assassin, whose soul lands in the body of a professor of anthropology played by Arturo Barba.

The series is created by writer and journalist Leonardo Padrón and produced by Lemon Films for W Studios and Univision. The cast also includes Macarena Achaga, Gonzalo Peña, Cinthia Vázquez, Jessica Mas, Henry Zakka, Nestor Rodulfo, Barbara López, Jessica Díaz, Cayetano Arámburo, Roberto Duarte and Claudia Martín as Eva Carvajal.

Based on the Spanish telenovela En Cuerpo Ajeno, it premiered on Univision from 29 October 2018 and concluded on 3 March 2019 after 87 episodes. The first episode is scheduled to broadcast across Africa on TLNovelas from 24 November 2025.

Angelique Boyer who serves as the lead in the upcoming series is currently playing triplets on The Three Sides Of Ana which is expected to conclude in the month of November.