Warner Bros. Discovery Stock Soars 26% As Ellison-Led Paramount Skydance Reportedly Plans Bid

Core Viewpoint - Paramount Skydance is preparing to submit a bid to acquire Warner Bros. Discovery, with backing from the Ellison family, following a recent merger with Paramount [1]. Group 1: Acquisition Proposal - The bid from Paramount Skydance will encompass Warner Bros. Discovery's cable networks and movie studio [1]. - The proposal comes after a multibillion-dollar merger between Skydance Media and Paramount was completed [1]. Group 2: Market Reaction - Following the news of the acquisition bid, shares of Warner Bros. Discovery increased by over 26%, reaching $15.89, marking the largest single-day gain since July 2005 [2]. - Paramount Skydance's shares also saw a rise of more than 8.5%, reaching $16.42 [2]. Group 3: Background Context - Skydance, led by David Ellison, had previously announced a merger with Paramount, which faced competition from other bidders like Sony and Apollo Global Management [3]. - The merger was approved by the Trump administration after Skydance agreed to end certain diversity, equity, and inclusion initiatives [3].