On Thursday, U.S. Senator Elizabeth Warren (D-Mass.) denounced Paramount Skydance Corp.'s (NASDAQ:PSKY) reported plans to bid for Warner Bros. Discovery Inc. (NASDAQ:WBD). She warned that the potential media merger poses a threat to competition and could be linked to questionable approvals under President Donald Trump.
Shares of Warner Bros. Discovery surged 28.95% on Thursday and rose another 9.77% after hours. Paramount Skydance stock gained 15.55% in regular trading and edged higher by 0.23% in after-hours, according to Benzinga Pro.
Warren Raises Alarm On Media Power
"Remember when Trump announced a multimillion-dollar secret deal with CEO David Ellison? And then — shocker — Trump approved Ellison buying CBS/Paramount. Now, Ellison wants to take over CNN/Warner Bros. This media merger must be blocked as a dangerous concentration of power," Warren said in a statement on X, formerly Twitter.
The Massachusetts Democrat had previously criticized Trump's role in greenlighting the $8 billion merger of Paramount Global and Skydance, calling for an investigation into what she suggested may have involved a "big fat bribe."
White House and Paramount did not immediately respond to Benzinga's request for comments.
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Paramount Skydance Eyes Warner Bros. Discovery
Paramount Skydance is reportedly working with an investment bank to prepare a possible all-cash offer for Warner Bros. Discovery. While no formal bid has yet been made, sources said a proposal could arrive as soon as next week.
Warner Bros. Discovery previously announced plans to split its global television operations from its studio and streaming businesses by April 2026. Any acquisition before the separation would require purchasing the entire company.
Entertainment Powerhouse In The Making
If successful, the merger would unite Paramount Skydance's portfolio — including CBS, Nickelodeon, MTV, BET, Paramount+ and film franchises such as "Top Gun" — with Warner Bros. Discovery's assets like HBO, CNN, Warner Bros. Studios and the "Harry Potter" and DC Comics universes. Both companies also hold major U.S. sports rights, from the NFL to MLB and college athletics.
Paramount Skydance itself was created in August through the merger of Paramount and Skydance Media, backed by RedBird Capital Partners and led by CEO David Ellison. At the time, Ellison warned restructuring and layoffs could exceed $2 billion.
Benzinga's Edge Stock Rankings indicate that PSKY continues to demonstrate a steady upward trajectory over the short, medium and long term, with additional performance details accessible here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
