In every industry there always a new kid on the block or in the market. Sometimes it is a wonder kid with new ideas, but more often it is someone who wants to be in the industry and is backed by seemingly unlimited resources. It is the second scenario which is happening in Hollywood.

In an article by Zaheer Kachwala and Dawn Chmielewski of Reuters, Parmount SkyDance is preparing a majority cash bid for Warner Bros Discovery it back by Ellison family.

The bid will be for the entire company, including its cable networks and movie studio. Skydance recently bought Paramount Global for $8.4 billion. Skydance CEO is David Ellison who wants to be in the movie business. His dad is Larry Ellison who owns 41% of Oracle Corp. The company plays a significant role in AI and as the stock has risen, Mr. Ellison has been the richest person in the world.

Warner Bros is a media giant and some of its assets are HBO Max, the Harry Potter franchise, and CNN.

The media sector has intensifying competition, as tradition players race to gain scale and strengthen their streaming services as TV viewership declines.

Linking to dividend paying stocks, in the media world there is always money to be made with a hit show or movie, and a million ways to capitalize on that success. However, as dividend buyers you are paying for consistency to deliver profits. Sometimes company scale up, sometimes they divest assets, it is always an interest story to hear every quarter.

There are more questions than answers, till the next time – to raising questions.