The potential offer, first reported by the Wall Street Journal, would be backed by the Ellison family Skydance CEO David Ellison and his father, Oracle co-founder Larry- Ellison. It comes just weeks after Skydance completed its $8.4 billion takeover of Paramount Global.

If successful, the deal would bring together entertainment powerhouses behind franchises such as CBS News and CNN. It would also merge streaming services HBO , Max and Paramount+ creating a stronger rival to Netflix, Disney and Comsat.

“This deal is the Hollywood equivalent of a sequel no one expected but everyone sort of saw coming”, said eMarketer analyst Jeremy Goldman.

Shares of Warner Bros Discovery surged nearly 30% following the report, while Paramount jumped 15%. Both companies declined to comment.

The Wall Street Journal noted that no formal bid has been submitted and discussions could still collapse.

However, reports suggest Skydance aims to acquire all of Warner Bros Discovery’s assets including Warner Bros Studio, HBO and CNN in a cash deal.

The timing comes as Warner Bros Discovery undergoes restricting to separate its struggling cable business from its studios and streaming units. Analysts say a cash-heavy takeover could be more attractive to shareholders that waiting for CEO David Zaslav’s turnaround strategy to deliver results.

Legal experts warned that the merger would face antitrust scrutiny. A Washington-based attorney Andre Barlow, said regulators would examine whether the deal could raise prices for consumers, reduce bargaining power for creators or limit content diversity.

Still he noted that the current US administration may take a more lenient approach compared to past regulatory stances.

Larry Ellison’s vast fortune now estimated at more than $360 billion would provide the financial muscle needed for such a deal.

Analysts believe significant private financing would still be required, given the size of the acquisition and Paramount Skydance’s balance sheet.

If approved, the merger would mark one of the most consequential entertainment deals in decades, cementing Ellison’s role as a dominant force in Hollywood’s streaming wars.