Paramount Skydance chief executive David Ellison is in discussions with Apollo Global Management and other private equity investors to join a potential $60bn bid for Warner Bros. Discovery, according to a report by the New York Post.

Apollo, led by Marc Rowan, is seen as the most likely partner, given its ownership of Cox Media Group and a major stake in Legendary Entertainment. Blackstone, which holds positions in Candle Media and other Hollywood assets, has examined the opportunity but is not expected to join the process at this time.

The discussions come just months after Ellison completed the $8bn merger of Paramount and Skydance, backed by RedBird Capital. The new entity, Paramount Skydance (PSKY), is now exploring further consolidation in Hollywood but reportedly has only $2.75bn in available cash as it restructures following the Paramount deal.

To fund a Warner Bros. Discovery acquisition, Ellison is seeking additional investors to supplement equity and reduce the need for family financing. His father, Oracle founder Larry Ellison, is not expected to provide significant funding, despite his status as the world’s second-richest person.

Warner Bros. Discovery CEO David Zaslav has engaged Goldman Sachs to gauge buyer interest and is reportedly valuing the company’s studios and streaming units at more than $30 per share, a premium to the $22–$24 range previously floated by Ellison’s camp.

Industry analysts caution that the deal faces major challenges, including WBD’s ongoing plan to split its growth businesses from its legacy cable networks. “[…] Ellison needs to raise tens of billions of dollars, and that won’t happen easily,” said Rich Greenfield of LightShed Partners.

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