Paramount Skydance Raises WBD Bid While Streaming Revenue Climbs 10%
The Development
Paramount Skydance CEO David Ellison confirmed this week that the company has submitted a more aggressive bid for Warner Bros. Discovery, even as a potential Netflix deal for WBD remains unresolved. The timing coincides with Paramount Skydance's Q4 2025 earnings report, which showed direct-to-consumer revenue grew 10% year-over-year, outpacing overall company revenue growth of 2% YoY to $8.15 billion. The stronger streaming performance gives Ellison a more credible financial foundation for the WBD pursuit, signaling that Paramount's platform business is gaining momentum independent of whether the acquisition closes. No deal terms or valuation figures were disclosed publicly.
Our Take
The 10% DTC growth number is doing more work here than Ellison's brief comments on the bid. Paramount Skydance is telling the market—and WBD's board—that it doesn't need this acquisition to survive, it wants it to dominate. That's a negotiating posture, not just a financial update. The real strategic logic is scale: a combined Paramount-WBD entity would control Max, Paramount+, and a formidable content library, creating a genuine third pole in streaming alongside Netflix and a Disney/Hulu bundle. For advertisers, that consolidation means fewer premium CTV inventory sources, tighter supply, and upward pressure on CPMs heading into the 2026 upfront cycle. Brands currently relying on Paramount+ or Max as lower-cost alternatives to Netflix should be modeling what a merged rate card looks like before upfront commitments lock in.
The Exploit
Action Item
If your media plan carries significant Paramount+ or Max inventory at current CPM rates, accelerate upfront negotiations and lock in 2026-2027 commitments before a merger announcement hardens pricing power for a combined Paramount-WBD sales team.
Source
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