Warner Bros Discovery has received initial buyout offers from industry giants Paramount Skydance, Comcast and Netflix, signalling the beginning of what could become one of Hollywood’s most significant consolidation moves in recent years.

The bidding process, confirmed by a source familiar with the matter, sets the stage for a potential ownership shift of the iconic studio, home to some of the world’s most valuable entertainment brands, a Reuters report stated.

The bids will determine the future of marquee assets including HBO, the Warner Bros film library and the DC Comics universe. Paramount is expected to pursue an acquisition of the entire Warner Bros Discovery portfolio, including its cable television networks.

The bid is backed by billionaire Larry Ellison, the Oracle co-founder and one of the world’s richest individuals, whose support strengthens the studio’s financial position in the race.

A merger with Warner Bros Discovery would significantly expand Paramount’s presence in cinema and deepen its streaming capabilities through a potential combination of HBO Max with Paramount+.

Reuters earlier reported that Warner Bros Discovery’s board recently rejected a nearly $24-per-share offer valuing the company at around $60 billion while publicly acknowledging it would consider strategic alternatives for its long-term future.

Meanwhile, Comcast, through its parent company NBCUniversal, has shown strong interest in Warner Bros’ film and television divisions and HBO. Owning DC’s flagship characters such as Superman and Batman would bolster Comcast’s theatrical and streaming businesses and further enhance its theme park offerings.

Netflix is also actively pursuing the studio and its streaming division, seeking to gain access to Warner Bros’ storied film library and fan-favourite franchises like ‘Harry Potter’ and ‘The Lord of the Rings’.

Warner Bros Discovery has already announced plans to split into two publicly traded companies—one focused on studios and streaming, and the other on its ageing cable networks. This restructuring has added momentum to acquisition interest from potential buyers hoping to secure the company’s most valuable assets.