Paramount Skydance CEO David Ellison is reportedly preparing a takeover bid for Warner Bros. Discovery, causing shares to soar almost 30%. If successful, Ellison could merge the two media giants, adding valuable assets to Paramount’s collection of franchises and sports media rights.

Paramount already boasts popular franchises like Star Trek, Transformers, SpongeBob SquarePants, and Mission Impossible. Recently, they acquired the rights to produce a Call of Duty movie and Legendary’s Street Fighter adaptation. Warner Bros. Discovery holds major franchises like DC superheroes, Lord of the Rings, and Game of Thrones, making it a valuable acquisition for Paramount.

Warner Bros. Discovery’s streaming service HBO Max has over 125 million subscribers, while Paramount+ has around 77 million. The potential merger would bolster Paramount’s theatrical slate and enhance its streaming service to compete with major players in the industry.

In addition to pursuing Warner Bros. Discovery, Ellison secured a $7.7 billion, seven-year deal to make Paramount the exclusive U.S. home for UFC events. With sports rights becoming scarce, this deal positions Paramount to acquire top-tier sports assets and expand its content library to rival Disney’s ESPN.

Read more at CNBC: Paramount Skydance-Warner Bros. Discovery bid would combine big content houses