Paramount facing competition for Warner Bros. Discovery as Comcast could emerge as suitor

The potential list of bidders for Warner Bros. Discovery is expected to expand, with cable-TV giant Comcast among the interested parties, according to sources familiar with the matter.

David Ellison, the chief of Paramount Skydance, is reportedly in discussions with private equity firms, including Apollo Global Management, to explore a potential bid for Warner Bros. Discovery. The deal could be valued at more than $60 billion.

Concerns have arisen within the Ellison family about securing additional funding for the bid, as David’s father, Larry Ellison, seems hesitant to commit to another major media acquisition following Paramount’s $8 billion deal.

There are also reports that Comcast might enter the bidding process soon, which has created unease at Paramount Skydance. Sources suggest that Comcast, led by Chairman Brian Roberts, is in the process of separating its cable TV assets into a new entity named Versant.

According to insiders, Skydance is particularly worried about a potential bid from Comcast due to the existing strategic relationship between Comcast’s Xfinity unit and Warner Bros. Discovery’s CEO, David Zaslav.

It remains unclear which division of Comcast would lead the bid, but sources indicate that Brian Roberts is highly interested in Warner Bros. Discovery’s content, including its top-ranked studio and HBO Max streaming service.

Insiders suggest that Skydance believes Comcast is the most likely bidder for Warner Bros. Discovery. However, neither Comcast nor Skydance has provided an official statement regarding these speculations.

As previously reported, Warner Bros. Discovery has engaged Goldman Sachs to explore potential buyout options. Meanwhile, David Ellison is considering an all-cash bid for the company, although uncertainties persist about his ability to finance the deal without additional support.

Legendary investor Mario Gabelli has pointed out that the bid for Warner Bros. Discovery could surpass $60 billion due to the company’s existing debt and ongoing negotiations led by David Zaslav.

Potential investors for the Warner Bros. Discovery deal include Apollo Global Management, which previously made a bid for Paramount, as well as Blackstone, which has shown interest in financing but has not committed to participation at this time.

David Ellison may face additional challenges due to Zaslav’s restructuring plans for Warner Bros. Discovery, which involve separating the company into two distinct units focused on growth businesses and cable properties.

Zaslav is reportedly seeking a premium price for the streaming and studio unit, highlighting the success of Warner Bros. Discovery’s recent box office hits and the profitability of HBO Max.