Paramount Skydance is refusing to blink in one of the biggest corporate showdowns Hollywood has seen in years.
The studio group, led by David Ellison, has reaffirmed its $30-per-share all-cash offer to acquire Warner Bros. Discovery, making it clear it has no intention of raising its bid, even after WBD’s board urged shareholders to reject the proposal.
Instead, Paramount is doubling down — publicly challenging Warner’s leadership, questioning the rival Netflix deal, and taking its case directly to shareholders.
Paramount Stands Firm: “Our Offer Is Superior”
In a sharply worded statement, Paramount said it “notes WBD’s decision not to engage” with what it described as a fully financed, risk-mitigated cash offer, insisting that every concern raised by Warner’s board had already been addressed.
Most notably, Paramount highlighted a major assurance:
Larry Ellison, one of the world’s wealthiest individuals and David Ellison’s father, has personally provided an irrevocable guarantee backing the equity portion of the deal.
According to Paramount, this move directly neutralized Warner’s biggest concern — financing certainty.
“Throughout this process, Paramount has diligently and constructively addressed each concern raised by WBD,” the company said, pointing to amended filings submitted in late December.
Yet despite these changes, Paramount claims Warner’s board continues to raise issues that have already been resolved, including flexibility around interim operations.
Why Warner Is Backing Netflix Instead
Just a day earlier, the Warner Bros. Discovery board formally advised shareholders to reject Paramount’s takeover bid, calling it “inferior” to its signed agreement with Netflix.
Under that deal:
- Netflix would acquire Warner Bros.’ studio and streaming assets
- WBD shareholders would receive cash + Netflix stock
- Warner would spin off its linear TV business into a separate public company, Discovery Global, by Q3 2026
Warner has argued that Paramount’s offer carries greater regulatory and debt-related risks, especially given Paramount’s smaller size and reliance on large-scale borrowing to fund the acquisition.
Paramount Fires Back: “Netflix’s Deal Is Riskier”
Paramount strongly disagrees — and it isn’t holding back.
The company claims the Netflix deal is already losing value, pointing to:
- A recent dip in Netflix’s stock price
- The shaky debut of Versant, Comcast’s cable spinoff, which Paramount says is the closest comparable to Warner’s planned Discovery Global entity
According to Paramount’s internal analysis, the real-time value of the Netflix deal has dropped to $27.42 per share, well below its own $30 cash offer, which it describes as “easy to value” and far more certain.
Paramount also criticized Warner’s board for failing to provide transparency on:
- How much debt Discovery Global will carry
- How shareholders should realistically value the linear TV spinoff
“We encourage WBD shareholders to ask the Board for clarity,” Paramount said.
Financing, Regulation, and the Ellison Factor
To counter claims about financial risk, Paramount emphasized that its debt package is backed by Bank of America, Citibank, and Apollo, institutions it called “globally sophisticated” and experienced in mega-transactions.
The company also believes it has a stronger chance of regulatory approval than Netflix, arguing that a Netflix–WBD merger could face deeper antitrust scrutiny given Netflix’s dominance in global streaming.
At the center of Paramount’s confidence is Larry Ellison’s personal backstop — a rare move at this scale, and one designed to signal that this offer will not collapse due to funding issues.
A Direct Appeal to Shareholders
With negotiations stalled at the board level, Paramount has gone straight to investors, launching a tender offer that allows WBD shareholders to sell their stock directly to Paramount.
The deadline: January 21.
David Ellison summed up the company’s position bluntly:
“Our offer provides greater value and a more certain, expedited path to completion. $30 in cash is clear. The Netflix deal is not.”
Final Words
This isn’t just a bidding war — it’s a referendum on Hollywood’s future.
On one side: a clean cash exit backed by deep-pocketed financiers and a legacy media strategy.
On the other: a streaming-first mega-deal built around Netflix’s scale, stock performance, and a risky cable spinoff.
With the clock ticking and shareholders now in the driver’s seat, the fate of Warner Bros. Discovery may soon be decided — not in a boardroom, but at the ballot box.
