Shares in Warner Bros. Discovery (WBD) jumped sharply at the beginning of this week after new speculation about a possible takeover by Paramount and the production company Skydance made the rounds.

According to reports from several US business media, Paramount Global and Skydance Media are currently preparing a takeover bid that could extend to the entire Warner Bros. Discovery company. The bid is said to consist mainly of cash and is apparently supported by the influential Ellison family, the owners of Skydance.

The news triggered an immediate reaction on the stock markets: WBD shares rose by more than 30 per cent at times. Market observers see the rise in the share price as a sign that investors believe the potential merger has a good chance of going ahead - even though there has been no official confirmation from the companies involved so far.

The rumour is particularly explosive due to the fact that Warner Bros. Discovery itself is currently working on a far-reaching reorganisation. According to sources close to the company, the media giant is planning to split its business divisions into two independent units by 2026: one for streaming and film production, the other for linear television and traditional networks. A takeover bid would potentially jeopardise these plans or at least significantly change them.

Neither Warner Bros. Discovery nor Paramount or Skydance have yet commented on the reports. Analysts emphasise that rumours of this kind can often turn out to be false, but nevertheless see them as a signal of the ongoing consolidation in the international media and streaming market.

Variety reports in detail.