Larry and David Ellison of Paramount Skydance are on the brink of expanding their media empire by potentially acquiring HBO, CNN, and a multitude of movie titles, pending regulatory approval for their bid for Warner Bros. Discovery.
This acquisition could merge HBO Max’s roughly 130 million subscribers with Paramount+, which has 79 million subscribers and successful projects like “1923” and “Landman,” not to mention staples like “Mission: Impossible” and “Star Trek.”
Whether the Ellisons plan to consolidate HBO Max and Paramount+ into a single platform is uncertain. This could be a strategic move as Netflix has indicated it may follow a similar path to enhance customer offerings.
Alternatively, they could adopt a Disney-like approach, offering subscribers the option to sign up for both services in a bundle. This might provide more flexibility and could help alleviate some regulatory scrutiny related to their merger.
Derek Ricefield, a former CBS News executive, speculates that they may keep the two services distinct but create attractive package deals for consumers. He believes the emphasis will be on initial sign-ups to encourage ongoing subscriber loyalty.
On the international front, since Paramount+ isn’t performing as well overseas, Ricefield suggests they might incentivize HBO Max subscribers abroad, such as in Poland, to try bundles for a nominal additional fee.
He also pointed out that as the number of subscribers grows, it could make partnerships with advertisers more appealing, leading to increased investments in content.
Paramount has yet to respond to inquiries regarding the deal.
A key point of contention surrounding the deal is the inclusion of CNN and its large workforce, including prominent figures like Anderson Cooper and Kaitlan Collins. There’s concern among CNN staff that this acquisition could undermine the network’s journalistic independence, especially considering the Ellisons’ connections with certain political figures.
Reports indicate apprehension at Paramount and Warner Bros. Discovery about potential layoffs following the completion of the acquisition, with employees expressing shock over the recent bidding developments.
The deal would position the Ellisons to create a media catalog that could rival giants like Disney, blending WBD’s legendary franchises with Paramount’s classics.
Paramount already possesses a massive property in Hollywood and plans to expand its studio capabilities further by acquiring additional soundstages.
Industry experts have noted that while the Hollywood community is concerned about losing major studios, it hasn’t significantly affected Netflix, which doesn’t operate as a traditional movie studio. However, the loss of a substantial buyer could have ramifications for producers and creators.
On the cable side, the merger would allow the Ellisons to include HBO classics like “Game of Thrones” and “The Sopranos,” along with major channels like MTV and Discovery’s portfolio.
The Elison family’s influence in sports media is already significant, owning rights to NFL games and NCAA March Madness. The deal may also confer TNT’s sports rights over various major events.
Larry Ellison has long been a formidable figure in the media landscape, previously known for owning Oracle and recently acquiring significant stakes in new ventures like TikTok.
Skydance Media, co-founded by David Ellison in 2006, has dramatically evolved, recently merging with Paramount after outbidding Netflix for Warner Bros. assets.
Paramount’s winning proposal, evaluated as an “excellent offer” by Warner Bros., included substantial financial incentives to shareholders, as well as covering potential penalties arising from the merger.
Previously, Netflix had negotiated a deal for Warner Bros. at a higher rate, but Paramount’s last-minute adjustments and approach have changed the landscape for streaming assets.
