Paramount Skydance is preparing a blockbuster bid for Warner Bros. Discovery that could value the struggling media giant at up to $24 a share, according to CNBC.
The proposed deal is expected to be 70% to 80% cash — backed in part by Oracle co-founder Larry Ellison, father of Paramount Skydance CEO David Ellison — with the rest in stock.
CNBC reporter David Faber said Friday that Paramount Skydance, the Ellison-controlled venture, is eyeing a bid in the range of $22 to $24 per share.
Warner Bros. Discovery stock began the day on Wall Street in the red, but the CNBC report, which was pubished at around 10:30 a.m. Eastern Time, sent shares higher.
As of 11 a.m. Eastern Time, the stock was up by nearly 2%. Paramount Skydance stock rose slightly as well.
Faber cautioned the figures were speculative and that a formal offer may come later than initially expected.
The looming bid reported by CNBC would put Warner Bros. Discovery — currently trading around $19 — at a multibillion-dollar premium.
Shares of Warner Bros. Discovery surged nearly 30% after initial word of Ellison’s planned bid, but Zaslav may split the company into two publicly traded entities next year if his price target isn’t met.
