David Ellison’s Paramount Skydance has intensified its campaign to acquire Warner Bros Discovery (WBD), launching a hostile bid despite Netflix’s announcement last week that it had agreed to purchase the company’s studio and streaming operations.
Netflix’s offer, valued at $82.7bn, covers WBD’s Hollywood film studio and HBO cable network but excludes its traditional television assets, including CNN and the Discovery channel.
Paramount’s all‑cash tender offer, sent directly to shareholders on Monday, covers the entire company and places a total enterprise value of $108.4bn on WBD, representing a significant premium on its current stock price.
In its pitch to shareholders, Paramount argued that its proposal offers greater value and is more likely to pass regulatory scrutiny. WBD said it would “carefully review and consider” the offer and advise shareholders within two weeks.
The Ellison family, backed financially by Oracle founder Larry Ellison, has longstanding ties with the Trump administration, which had previously signalled support for a Paramount takeover. Larry Ellison reportedly discussed potential changes at CNN with senior Trump aides.
Donald Trump has praised recent moves at Paramount, including the appointment of Bari Weiss as editor‑in‑chief of CBS News and the revival of the Rush Hour franchise. Before winning approval for its Paramount takeover, the Ellisons agreed to pay $16m to settle a lawsuit filed by Trump over an interview with Kamala Harris, which legal experts had dismissed as meritless.
Regulatory filings show the Paramount bid is supported by outside investors including Jared Kushner’s Affinity Partners, Saudi Arabia’s Public Investment Fund, and the Qatar Investment Authority.
David Ellison described Netflix’s proposal as “an inferior offer” that exposed shareholders to uncertainty. “WBD shareholders deserve an opportunity to consider our superior all‑cash offer for their shares in the entire company,” he said.
Netflix executives appeared unconcerned. Co‑chief executive Ted Sarandos said the Paramount bid was “totally expected” and expressed confidence that Netflix’s deal would proceed.
Paramount has already made several unsuccessful offers during the bidding process. Its lawyers accused WBD of favouring Netflix and failing to conduct a fair transaction process.
The Netflix deal brought temporary relief to CNN staff, who had feared a merger with CBS News. CNN’s chief executive, Mark Thompson, told employees the agreement would allow the network to continue its digital transition. However, concerns remain about the spin‑off of WBD’s traditional television networks, including Cartoon Network and TLC.
Paramount’s hostile bid has reignited anxiety among staff at both CNN and CBS News, with fears of job losses if the networks were combined.
Trump said on Sunday he would be personally involved in reviewing the Netflix‑WBD transaction, citing competition concerns, though he praised Sarandos. Several politicians, including Senator Elizabeth Warren, and entertainment unions have voiced reservations about the deal.
While the acquisition is unlikely to face scrutiny from the Federal Communications Commission, the Department of Justice is expected to review antitrust implications. Paramount insists its proposal enhances competition and consumer choice.
The Ellisons’ offer is set to expire on 8 January unless extended. “We’re here to fight for value for our shareholders and for WBD shareholders,” David Ellison said. “Our proposal is superior to Netflix’s in every dimension.”
Trump, despite his support for the Ellisons’ takeover of CBS News, criticised the network on Monday for airing a 60 Minutes interview with Marjorie Taylor Greene, accusing Paramount of allowing “fake reporting” to continue.
