Trader Hits an Instant $5 Million Jackpot With a Warner Bros. Bet

An investor has pocketed a hefty windfall of roughly $5 million after making a well-timed bullish bet on Warner Bros Discovery Inc., just hours before news broke that Paramount Skydance Corp. is gearing up to acquire a controlling stake in the entertainment giant.

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Late Wednesday morning, shortly after 11 a.m. in New York, a trader laid down $5.7 million to purchase 100,000 call options tied to Warner Bros shares, which were then changing hands at $13.10.

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These contracts give the buyer the right to purchase 10 million shares of Warner Bros at $15 each, with an expiration date set for December 19. To balance the position, the same trader simultaneously sold about $41 million worth of Warner Bros stock, a move likely intended as a hedge.

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Just a few hours later, the Wall Street Journal reported that Paramount Skydance is preparing a takeover bid for Warner Bros Discovery. The effort reportedly includes support from Oracle co-founder Larry Ellison’s family, with his son David Ellison—chairman and chief executive of Paramount Skydance—playing a central role. Paramount Skydance itself finalized its merger with Paramount only a month earlier, on August 7.

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The market reaction was swift. Warner Bros shares surged 36% at the height of the rally, before pulling back slightly to close the day up 26% at about $16 per share. The sudden price spike turned the trader’s call options “in the money,” meaning they can now be exercised or sold for a sizable gain.

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Based on Bloomberg’s estimates, the investor is currently sitting on an unrealized profit somewhere between $4 million and $6 million, depending on how the options are valued against the stock’s rapid climb. That kind of gain in just a few hours underscores the outsized rewards—and risks—that come with bold options trading strategies.

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The timing of the trade is noteworthy, given that it landed just before the acquisition story went public. Options traders often attempt to get ahead of potential catalysts, but this particular move highlights how quickly fortunes can shift when corporate dealmaking enters the spotlight.

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The acquisition chatter comes at a time when Warner Bros Discovery is navigating a challenging media landscape. The company, known for owning CNN, HBO, and Warner Bros Pictures, has been working to adapt to the rapidly changing streaming wars while managing its heavy debt load. A bid from Paramount Skydance could reshape the industry yet again, consolidating two major players in Hollywood.

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Meanwhile, the Ellison family’s role in this unfolding story underscores the growing influence of billionaire investors in shaping the media sector. David Ellison has long sought to expand his influence in Hollywood, and the potential Warner Bros deal would represent one of the boldest moves yet for Paramount Skydance.

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For Larry Ellison himself, the deal talk comes as he finds his personal fortune surging. The Oracle co-founder’s net worth has recently climbed to an estimated $383 billion, placing him neck-and-neck with Elon Musk in the race for the title of world’s richest individual. According to the Bloomberg Billionaires Index, Musk currently edges out Ellison with a $384 billion fortune.

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This sudden wealth gap narrowing reflects the extraordinary fortunes tied to tech and media empires. For Ellison, the rise in Oracle’s market value and his family’s growing presence in entertainment have both played key roles in boosting his global ranking.

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As the Warner Bros story continues to develop, investors will be watching closely to see whether Paramount Skydance formalizes its offer and what kind of premium it might pay to secure the deal. For options traders, the recent rally in Warner Bros shares is a reminder of how quickly strategic bets can pay off when major corporate news shakes up the market.

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For now, one trader’s gamble has already proven lucrative. What started as a $5.7 million wager has ballooned into millions in paper profits, fueled by takeover speculation and the Ellison family’s Hollywood ambitions. Whether those gains are locked in or allowed to ride will depend on how the Warner Bros saga unfolds in the weeks ahead.

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