More than a year after Skydance signed a deal to acquire Paramount, the transaction finally closed early Thursday morning. Now Paramount, a relatively small player in the streaming wars, is getting a second wind just as Comcast and Warner Bros. Discovery, two of its larger rivals, are rearranging their businesses.
So, naturally, media insiders are buzzing about which deals might be next.
There are simply too many streamers: The giants — Netflix, Amazon and Alphabet’s YouTube — and then everyone else. Investing in streaming businesses is expensive, and consumers are getting sick of subscribing to multiple platforms.
Disney announced yesterday that it would consolidate its Hulu and Disney+ apps. And analysts say Paramount is still under pressure to expand its streaming and studio businesses. “Skydance and Paramount coming together doesn’t change the game for the combined entity,” Laurent Yoon, an analyst at Bernstein Research, said. “They’re both small, and the status quo doesn’t work.”
Skydance’s chief executive, David Ellison, has long been interested in Warner Bros. Discovery, three people familiar with his thinking said. (Puck earlier reported Ellison’s interest.) And Warner Bros. Discovery is preparing to spin out its streaming and studio business by mid-2026, a move that insiders see as a potential precursor to selling one of the last major libraries of its kind.
But Paramount executives may want to settle in at Skydance before pursuing a major acquisition. And Discovery’s streaming and studio business, which includes intellectual property like Harry Potter, “Game of Thrones” and Batman, would cost at least $40 billion by the end of next year, according to analysts.
That means Paramount would need financial help to seal a deal — possibly from Mr. Ellison’s father, Larry Ellison, a co-founder of Oracle, who helped fund the Paramount deal. A spokeswoman for Skydance declined to comment.
Technology giants like Apple and Amazon could afford the $40 billion price tag, but may not want to divert funds from artificial intelligence. And Comcast may wish to stay out of the regulatory spotlight given that its chief executive, Brian Roberts, has been a constant target for President Trump.
The elephant in the room: Deal makers watched and learned from Skydance’s long, painful journey to close its acquisition of Paramount. Appetite to withstand a rigorous review may determine whether deal makers are in for a quick sequel or a long intermission.
Lauren Hirsch is a Times reporter who covers deals and dealmakers in Wall Street and Washington.
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