David Ellison, the ambitious media executive who only last month finalized his takeover of Paramount Global, is wasting no time in pursuing his next blockbuster target. According to multiple people familiar with the matter, Ellison is preparing a bid to acquire Warner Bros. Discovery — the media conglomerate that owns HBO, CNN, and the legendary Warner Bros. film studio.

If successful, the merger would reshape the global entertainment landscape, creating one of the most powerful alliances in both news and entertainment. By combining Paramount’s assets with Warner Bros. Discovery’s portfolio, the deal would unite two of the largest Hollywood studios while bringing together two influential news networks — CBS News and CNN — under the same corporate roof.

A Bold Strategy to Dominate Entertainment

Ellison, the son of Oracle co-founder Larry Ellison, is known for his aggressive deal-making and long-term vision for Skydance Media, the production company he founded in 2010. His acquisition of Paramount marked a significant leap from content creation into media ownership, but the potential purchase of Warner Bros. Discovery signals an even bigger ambition: to consolidate legacy film studios with modern streaming powerhouses.

Warner Bros. Discovery is currently valued at around $41 billion and carries roughly $35 billion in debt — a legacy from its 2022 merger that combined WarnerMedia with Discovery. Despite the heavy financial burden, Ellison’s family fortune provides him with unique leverage. Larry Ellison is among the wealthiest individuals in the world, with Bloomberg estimating his net worth at $383 billion. This immense backing gives David Ellison financial credibility that few rivals can match.

Sources say the proposed bid for Warner Bros. Discovery would be structured primarily in cash, underscoring how serious Ellison is about cementing his role as a dominant player in Hollywood.

Paramount’s Rapid Transformation Under Ellison

Since taking control of Paramount, Ellison has already begun reshaping the company’s direction. Paramount has secured licensing deals with the Ultimate Fighting Championship, entered long-term agreements with the creators of South Park, and even opened talks to acquire The Free Press, a digital media outlet co-founded by Bari Weiss.

These moves demonstrate Ellison’s strategy of balancing traditional television with streaming, diversifying content, and appealing to audiences across multiple platforms. By adding Warner Bros. Discovery to the mix, Ellison would be taking an enormous leap toward consolidating two storied studios and strengthening his influence over both scripted entertainment and live news.

Why Warner Bros. Discovery Is a Prize Asset

Warner Bros. Discovery holds one of the most valuable intellectual property libraries in the entertainment world. The studio controls global franchises such as Harry Potter, Batman, The Lord of the Rings, Game of Thrones, and Friends. Its animated legacy includes iconic characters like Bugs Bunny and Scooby-Doo, while its horror division has built successful franchises like The Conjuring.

The Warner Bros. IP library is considered second only to Disney’s, and many analysts believe it remains underutilized. Ellison’s team likely views this as an opportunity to expand globally and maximize revenue through films, streaming, gaming, and merchandise.

After enduring one of the weakest box office runs in its 102-year history, Warner Bros. recently experienced a turnaround. The release of Minecraft: The Movie delivered a surprise blockbuster, followed by six consecutive No. 1 box office hits. This rebound has allowed Warner Bros. to reclaim the title of the top studio in domestic market share for 2024, according to Comscore.

Meanwhile, the HBO Max streaming platform has regained momentum. Now profitable and available worldwide, HBO Max boasts a lineup of high-profile series such as The White Lotus, The Last of Us, and The Gilded Age. Although its subscriber base still lags far behind Netflix’s 300 million global users, HBO Max is increasingly seen as a premium streaming brand with strong growth potential.

A Competitive Bidding Landscape

Warner Bros. Discovery has already announced plans to split its operations into two separate entities next spring: one focused on traditional cable networks and another on streaming and film production. The slimmed-down Warner Bros. division could attract bids not just from Ellison but also from technology giants like Amazon or Apple, which have been expanding aggressively into entertainment.

Some Hollywood insiders speculate that the split is designed specifically to spark a bidding war. However, Wall Street analysts remain divided. While streaming remains attractive to tech firms, the rising costs of artificial intelligence development may deter companies from investing tens of billions of dollars into media acquisitions.

Adding complexity to the situation, Warner Bros. Discovery’s current CEO, David Zaslav, may have his own consolidation ambitions. Rather than selling off assets, Zaslav could attempt to acquire properties from rivals such as Comcast, positioning Warner Bros. as a consolidator rather than a target.

Regulatory and Political Hurdles

Any potential deal would face intense regulatory scrutiny, particularly under the current Trump administration. The Federal Communications Commission and the Federal Trade Commission have both signaled willingness to scrutinize media consolidation not only on economic grounds but also on political ones.

The combination of CBS News and CNN could become a flashpoint. Former President Donald Trump has frequently attacked CNN as “fake news,” and some regulators may resist placing CNN under the same corporate umbrella as a broadcast news network. On the other hand, Comcast has long managed MSNBC and NBC News together, providing precedent for such arrangements.

Earlier this year, Ellison’s merger with Paramount was approved only after he agreed to certain concessions, including appointing an ombudsman for CBS News and avoiding the reinstatement of diversity, equity, and inclusion programs. Observers believe Ellison may again rely on his father’s close ties to Trump to ease regulatory approval for a Warner Bros. Discovery acquisition.

The Stakes for Streaming

If the merger goes through, the combined entity would control two of the top five U.S. streaming services: HBO Max and Paramount+. Together, these platforms could significantly improve competitiveness against Netflix, Amazon Prime Video, and Disney+.

Still, even combined, HBO Max and Paramount+ would remain far smaller than Netflix, which has a commanding global subscriber base. Analysts suggest that Ellison may be less concerned about overtaking Netflix immediately and more focused on building a diversified portfolio that can withstand industry shifts.

A Defining Moment for Hollywood

The potential acquisition of Warner Bros. Discovery by David Ellison would represent one of the most consequential media mergers in recent history. By uniting Paramount with Warner Bros., Ellison would control a library of blockbuster franchises, leading news organizations, and two global streaming platforms.

For Hollywood, the deal would symbolize a new era in which traditional studios must consolidate or risk being overshadowed by tech giants with limitless resources. For Ellison, it would mark the culmination of his vision to transform Skydance from a relatively small studio into one of the world’s most powerful entertainment companies.

Whether regulators, shareholders, and rival bidders allow this vision to materialize remains uncertain. What is clear, however, is that David Ellison has placed himself at the center of Hollywood’s next great power struggle — one that could redefine the future of both news and entertainment on a global scale.