Rumors are flying that Paramount Skydance is planning to acquire Warner Bros. Discovery. The Wall Street Journal reports that David Ellison is preparing a mostly cash-heavy bid, backed by his father Larry Ellison.
No formal offer has been submitted yet. It’s also rumored that Warner Bros. Discovery CEO David Zaslav is trying to encourage a bidding war. Amazon, Apple, and Netflix are all reportedly interested in making their own offers.
A Merger That Could Reshape Hollywood
For many, the news came as a surprise. Many figured that the Ellison family would target Warner Bros Studios, not the entire conglomerate.
If it does happen, the merger would combine two of Hollywood’s legacy giants into one company. The same corporate umbrella would control Harry Potter, DC, Looney Tunes, Nickelodeon, Top Gun, CNN, SpongeBob, and more. For the entertainment industry, the stakes are enormous. One question I have is if this merger goes through: how will it impact Warner Bros. animation division?
Lessons from the Zaslav Era
When Warner Bros merged with Discovery in 2022, animation was one of the first casualties. Many shows and films were canceled for tax write-offs. It didn’t matter if it was a popular TV series or a film that had completed production. Dozens of titles were removed from HBO Max recently. While most of them can be found on other streaming platforms, some like Infinity Train are lost media with no legal way to access them.
David Zaslov has always viewed animation as being inferior to live-action. He had no problem letting his opinions show in the business decisions he made. Cartoon Network has suffered the most under Zaslov. Interestingly, Adult Swim (programming block on Cartoon Network) has thrived. It’s taken more airtime, even getting more hours than the programs meant for kids.
For fans who grew up on Warner Bros Animation, it’s been a rough era. It’s heartbreaking to watch the work so many writers, animators, directors pour their soul into being tossed aside. All because of one man (who really shouldn’t have a say in what happens in animation) go on a power trip.
What Paramount Brings to the Table
Now, Paramount is far from perfect, but it has a better track record with animation. IPs like SpongeBob, Avatar: The Last Airbender, and Paw Patrol are still going strong. Recently, Paramount acquired the streaming rights to South Park for $1.5 billion dollars. They also extended their production deal with South Park creators Trey Parker and Matt Stone, providing funding for 50 new episodes.
Paramount is still willing to invest in animation, even as industry trends have shifted. If Cartoon Network, Adult Swim, and Warner Bros Animation came under Paramount’s umbrella, there’s a chance of renewed commitment. Paramount’s distribution channels could give these brands greater reach. Its culture could give animators more respect than they’ve had under Zaslav. At the very least, animation wouldn’t be treated like garbage.
The Risks of Consolidation
There is a risk that a merger could lead to “cost efficiencies”. It’s a polite way to refer to the potential layoffs, canceled projects, and a reduced slate of releases.
There would be overlapping divisions. On one end, you have Warner Bros Animation, Cartoon Network, Adult Swim, and DC projects. On the other hand, you’ve got Nickelodeon and Paramount Animation. Consolidation would result in less work for writers, animators, and directors. The Disney–Fox merger is a cautionary tale. That deal left fewer animated films per year, despite having several studios on hand. A Paramount–Warner Bros Discovery merger could follow that path.
Regulatory Questions and Timing
Another thing to consider is that Warner Bros Discovery has announced plans to split into two companies by early 2026. One would be focused on studios and streaming (including animation), the other on its linear cable networks. That structural shake-up could affect how a merger is executed. It would also make it difficult to determine what assets would end up under Paramount’s control.
On top of that, regulators will be monitoring everything. Consolidating multiple animated IPs under one umbrella (Looney Tunes, DC, SpongeBob, Avatar, Nickelodeon, Cartoon Network) could raise questions about competition. Even if a deal is approved, the scrutiny may force changes that impact animation.
A Fragile Future for Animation
The merger isn’t real yet. Still, the possibility is enough to raise hopes and fears for the future of Warner Bros Animation.
Animation has always been one of Warner Bros’ greatest strengths, even if its leadership hasn’t always treated it that way. A Paramount merger could breathe new life back into entities like Cartoon Network. It could restore funding or shelved projects. For now, we’ll just have to wait until Paramount makes a statement. Or a purchase.
