David Ellison, the head of Paramount Skydance, is reportedly negotiating with a significant private equity firm regarding a potential acquisition of Warner Bros. Discovery (WBD). This development suggests he might be seeking some financial backing for his move.
Apollo Global Management is one of the potential investors interested in collaborating with WBD. Previously, they had attempted a $26 billion debt-driven acquisition of Paramount in 2024 but were ultimately outbid by Skydance, according to sources close to the situation.
Apollo, led by billionaire Mark Rowan, already has substantial media holdings, including over a dozen TV stations via Cox Media Group and a significant investment in Legendary Entertainment.
Sources indicate that Apollo is in the best position to back Ellison’s proposal. However, Blackstone, under Stephen Schwartzman, which has stakes in companies like Candle Media, is exploring funding options but is currently not inclined to participate.
One insider noted, “These firms have considerable financial resources and stakes in Hollywood, making them valuable partners in negotiations.”
A spokesperson for Skydance declined to comment, and representatives from Apollo and Blackstone were also silent.
While Ellison is exploring new funding avenues, insider chatter suggests that his father, Larry Ellison—who has recently seen a surge in wealth—might not be very enthusiastic about making major media investments.
This news about David’s potential all-cash offer follows his earlier $8 billion acquisition of Paramount, which finally concluded after prolonged negotiations over 13 months. Shortly after this deal, he expressed interest in WBD, which encompasses HBO, CNN, and Warner Bros. Studios, although funding challenges have reportedly caused a lull in those discussions.
Speculation is growing that David Ellison might be relying on his father’s financial support. Recently, Paramount Skydance announced the $150 million acquisition of Free Press, a right-leaning outlet noted for its vocal editor, Bari Weiss, although its revenue is only around $15 million.
In addition to leading Free Press, Weiss will also serve as managing editor at CBS, maintaining her editorial approach, which includes scrutiny of “woke” issues and pro-Israel coverage. Some potential investors found Weiss’s asking price too high, doubting whether the site’s reach justified the valuation.
One seasoned media analyst remarked, “It’s uncertain if the WBD deal will materialize. I really don’t expect Larry Ellison to divest $60 billion of Oracle shares for this.”
David Ellison faces a financial challenge, as Paramount Skydance has about $2.75 billion in liquid assets while undergoing a notable restructuring. Partnering with Redbird Capital, another private equity firm, adds some connections globally, but there’s uncertainty about navigating regulatory approval for a significant media acquisition involving foreign funds.
The leadership at WBD, particularly CEO David Zaslav, is advancing plans to separate the company into two segments: growth-oriented streaming and studios versus traditional cable assets.
Zaslav has engaged Goldman Sachs to seek other potential buyers, especially given doubts about Larry Ellison’s readiness to invest $60 billion shortly after his son closed the Paramount deal. He aims for a valuation exceeding $30 per share just for the streaming and studio segments, notably higher than the $22 to $24 per share that the Ellisons have floated for the entire WBD entity. This reflects WBD’s recent box office successes and its robust streaming platform, HBO Max.
This situation has led to frustration among Skydance executives, including Ellison and Jeff Shell, the former NBCUniversal chief now serving as president. Furthermore, the new attorney general for WBD, Makan Delrahim, is a former antitrust chief in the Trump administration, engaged in deals that likely influence WBD’s future.
“If Larry Ellison truly wants to proceed with purchasing WBD, he could easily finance it today. This acquisition could wrap up soon after prior leaks surfaced,” asserted the analyst. “The silence, however, suggests that without Larry’s involvement, this may not progress anytime soon.”
