Warner Bros Discovery stock jumps more than 30% after Paramount Skydance bid report
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The news: Warner Bros Discovery stock jumped more than 30% after The Wall Street Journal reported Paramount Skydance is preparing a majority cash bid for the company.
According to the paper, the bid is backed by the Ellison family but has not yet been submitted and the plans could still fall apart.
The bid would be for the entire company, including its movie studio, streaming assets and cable networks, according to the Journal.
The context: The big comes after Warner said late last year it planned to restructure into two operating divisions by next April, one focused on the legacy cable TV business and the other on streaming and studios. 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.
The news comes after Paramount and Skydance completed their merger last month after a lengthy delay. David Ellison, the son of Oracle co-founder Larry Ellison, serves as chairman and chief executive of Paramount.
The numbers: Shares in Warner Bros Discovery rose as much as 37.5% to USD 17.24 each following the report on Thursday (Friday morning AEST). They were trading almost 27% higher in the late afternoon.
The source: The Wall Street Journal
