Paramount Skydance Is Said Preparing Bid for Warner Bros. (3)

Paramount Skydance Corp., the Hollywood studio taken over in August by independent filmmaker David Ellison, is preparing a bid for rival Warner Bros. Discovery Inc., according to people with knowledge of the matter.

While Paramount is working on an offer with an investment bank, no talks with Warner Bros. have been held, said the people, who asked to not be identified because the deliberations are private.

Warner Bros. said in June it plans to split into two businesses, one focused on cable TV and the other on streaming and studios. The mostly cash offer will be for ...