Paramount is preparing to make a bid for Warner Bros. Discovery, a source familiar with the matter told NBC News.
The news was previously reported by The Wall Street Journal and CNBC.
High-profile members of both Paramount and Warner Bros. Discovery told NBC News that there have been discussions about a possible bid.
Representatives for Paramount Skydance and Warner Bros. Discovery did not immediately respond to requests for comment on Thursday. Warner Bros. Discovery stock surged about 29% while Paramount's jumped 15%.
The offer would come about two months after the Trump administration approved Paramount’s takeover by Skydance, which is run by David Ellison, son of Oracle co-founder and Trump ally Larry Ellison.
The bid, which would reportedly be a majority cash offer, is backed by the Ellison family. The offer amount is not known.
The elder Ellison briefly became the world’s wealthiest person on Wednesday, after shares in Oracle soared amid a bullish revenue outlook.
If it comes to fruition, the merger would bring together two of Hollywood’s most storied studios.
Warner Bros. Discovery, led by David Zaslav, recently announced a plan to separate its global TV networks business from its streaming business and studio. But the Ellison-backed offer would be a takeover of WBD in its entirety, including its studio (Warner Bros.), streaming service (HBO Max) and cable networks (CNN, TBS and TNT).
Paramount’s assets include its film studio, CBS News, Nickelodeon, Comedy Central, The CW, MTV and BET. The merger with Skydance was finalized in August after Trump administration regulators greenlit Skydance Media’s $8 million bid to acquire the legacy company.
