Paramount Skydance is currently winning the war to acquire Warner Bros. Discovery

Paramount Skydance, Comcast and Netflix have submitted bids for Warner Bros. Discovery, but Paramount Skydance — backed by Larry and David Ellison — is viewed as the frontrunner because it is the only bidder prepared to buy CNN intact, a unit the Ellisons believe is a profitable asset (around $500 million a year) that can be tightened up and integrated with CBS; sources say the Ellisons would also expand oversight of editorial staff including Bari Weiss. Political and regulatory dynamics favor the Ellisons: President Trump reportedly prefers them to “neutralize” CNN and lawyers expect a faster, more favorable review for a full-buyer like Paramount Skydance, while Comcast and Netflix face protracted antitrust scrutiny and the risk of tax leakage if they buy pieces of WBD. CEO David Zaslav has pushed for a $30-per-share ($70 billion) deal, but the Ellisons believe regulatory advantages justify offering closer to $27 a share, a calculus that could prompt the board to favor a quicker, lower-value sale over a drawn-out bidding war.

Analysis

Paramount Skydance, Comcast and Netflix have submitted bids for Warner Bros. Discovery (WBD), which owns the No. 1 Hollywood studio, the No. 3 streaming service, HBO and CNN; Paramount Skydance (backed by Larry and David Ellison) is viewed as the frontrunner because it alone is willing to buy CNN intact and sources estimate CNN still produces roughly $500 million in annual profits despite linear-TV headwinds.

>Political and regulatory factors are central: sources say President Trump prefers the Ellisons to "neutralize" CNN and Larry Ellison’s donor ties and resources are expected to smooth approval, with attorneys predicting a "white-glove" six-month review for a full-buyer. By contrast, Comcast and Netflix face lengthy antitrust scrutiny (lawyers suggest up to two years) and bids for pieces of WBD would create tax-leakage risk that could depress proceeds to WBD shareholders.

Valuation tension is acute: CEO David Zaslav seeks $30 per share (~$70 billion) while the Ellisons are reportedly prepared to cap their offer near $27 per share; media insiders indicate the WBD board may prefer a quicker, lower-value transaction to avoid prolonged regulatory and litigation uncertainty, making near-term share volatility likely.

Key Decisions for Investors

• Consider hedging or reducing near-term exposure to WBD until the board signals acceptance of a specific bid or regulatory timelines are clarified, because a faster $27-per-share outcome is plausible and would limit upside versus the $30-per-share target
• Underweight or avoid adding incremental positions in Comcast and Netflix until antitrust risk and deal structure are clearer, given counsel expect up to two-year probes and potential value erosion from tax leakage if assets are sold in pieces
• Monitor concrete catalysts — formal bid amounts, WBD board statements, regulatory filings/timelines and any public comment from Zaslav or bidders — as these will materially re-rate deal probabilities and near-term volatility
• If the Ellisons succeed and regulatory approval looks probable, reassess long-term exposure to businesses positioned to capture CNN-CBS integration synergies and digital migration, since management projects meaningful CNN profitability that could be unlocked post-close