{"id":1604494,"date":"2025-12-08T18:41:05","date_gmt":"2025-12-08T23:41:05","guid":{"rendered":"https:\/\/observer.com\/?p=1604494"},"modified":"2025-12-08T18:41:05","modified_gmt":"2025-12-08T23:41:05","slug":"david-ellison-paramount-take-over-warner-bro-discovery","status":"publish","type":"post","link":"https:\/\/observer.com\/2025\/12\/david-ellison-paramount-take-over-warner-bro-discovery\/","title":{"rendered":"David Ellison\u2019s Case for Paramount to Own Warner Bros. Discovery"},"content":{"rendered":"
\"Paramount
Paramount Skydance CEO David Ellison speaks during the Bloomberg Screentime conference in Los Angeles on October 9, 2025. PATRICK T. FALLON\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n

On Friday, Warner Bros. Discovery\u2019s board agreed to sell its studio and streaming assets to Netflix in an $82.7 billion deal that many believed would reshape Hollywood. But just a weekend later, the plot shifted: Paramount Skydance CEO David Ellison came out swinging with an even larger, all-cash proposal to buy all of WBD\u2019s assets for $108.4 billion (or $30 per share). By going straight to WBD shareholders, the young media executive argued that Paramount would serve as a better home for WBD and help preserve Hollywood\u2019s legacy.<\/p>\n

Ellison\u2019s bid notably includes WBD\u2019s TV networks\u2014CNN, TBS, TNT and others\u2014which Netflix did not want. The proposal is reportedly partially backed by Ellison\u2019s father, Oracle founder Larry Ellison, and RedBird Capital Partners, which also financed Skydance Media\u2019s $8 billion acquisition of Paramount Global that closed in August.<\/p>\n

In an interview with CNBC\u2019s Squawk Box<\/em> today (Dec. 8), Ellison called a Netflix acquisition a \u201chorrible deal for Hollywood<\/a>\u201d and argued that Paramount\u2019s offer would better serve customers and the industry. \u201cAs someone who spent the last 15 years of my life producing movies and television shows, this is an industry that I love, this is an existential moment for our business, and we believe that what we are offering is better for Hollywood. It\u2019s better for the customers and it\u2019s pro-competitive,\u201d he said.<\/p>\n

Before Paramount entered the fray, much of the weekend chatter centered on what a Netflix takeover might mean for the future of entertainment. Hollywood guilds\u2014including SAG-AFTRA, the WGA and other groups\u2014quickly began exploring ways to block the merger. Many of their concerns stem from fears that further consolidation would lead to job and wage losses, reduced competition and less creative freedom and content diversity. There are also anxieties about the theatrical business, given Netflix co-CEO Ted Sarandos\u2019s long-held belief that watching movies in theaters is \u201coutdated.<\/a>\u201d<\/p>\n

Several politicians have also raised red flags. Senator Elizabeth Warren called the proposed Netflix\u2013WBD combination a \u201cnightmare<\/a>\u201d that could result in \u201chigher subscription prices and fewer choices.\u201d President Donald Trump has likewise voiced skepticism<\/a> about the deal.<\/p>\n

Ellison argues that Paramount\u2019s deal would ease antitrust concerns and actually increase competition by pairing Paramount+ with WBD\u2019s HBO Max to better rival Netflix and Disney. A combined Netflix and WBD streaming service would create one of the industry\u2019s largest platforms and almost certainly trigger intense antitrust review. Netflix has more than 300 million subscribers, while WBD’s streaming services have around 128 million. In contrast, Paramount+ has only around 79 million. A merger with Paramount will likely face a smoother regulatory process due to its comparatively smaller scale.<\/p>\n

Some analysts speculate that the Ellisons\u2019 close ties to Trump could give Paramount an advantage with regulators. Since making the bid, Ellison has said he has had \u201cgreat conversations<\/a>\u201d with the President, though he stressed that he does not \u201cwant to speak for the President.\u201d<\/p>\n

Meanwhile, despite Trump\u2019s skepticism toward a Netflix\u2013WBD merger due to concerns about market dominance, he referred to Netflix Co-CEO Sarandos as a \u201cfantastic man\u201d and \u201cgreat person.\u201d<\/a><\/p>\n

As of Monday afternoon, WBD said it would review Paramount\u2019s offer and issue a decision within 10 days. In a statement, the board emphasized that it \u201cis not modifying its recommendation with respect to the agreement with Netflix.\u201d Because WBD has already signed an agreement, it would owe a $2.8 billion breakup fee if it accepts Paramount\u2019s bid instead. Netflix, for its part, would have to pay a $5.8 billion breakup fee if the transaction collapses or fails to secure regulatory approval.<\/p>\n","protected":false},"excerpt":{"rendered":"

The media heir says a Paramount takeover offers a more competitive future for streaming, theatrical releases and the broader entertainment industry.<\/p>\n Read More<\/a>","protected":false},"author":129757851,"featured_media":1604532,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"post_tag":[423824074],"company":[423806361,424004531,423975146],"channel":[186,423806427,423868938],"location":[],"nyo_column":[],"person":[19221038,423882947,423894428,4240118],"nyo_post_hidden":[],"coauthor":[424005161],"class_list":{"0":"post-1604494","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"tag-mergers-and-acquisitions","8":"observer_company-netflix","9":"observer_company-paramount-skydance","10":"observer_company-warner-bros-discovery","11":"channel-business","12":"channel-finance","13":"channel-media","14":"nyo_person-david-ellison","15":"nyo_person-ted-sarandos","16":"nyo_person-larry-ellison","17":"nyo_person-elizabeth-warren"},"acf":{"homepage_position":"","homepage_title":"","homepage_excerpt":"","alternative_og_image":"","headline":{"seo_headline":""},"subheadline":{"optimized_seo_description":"","optimized_social_excerpt":""}},"apple_news_notices":[],"parsely":{"version":"1.1.0","canonical_url":"https:\/\/observer.com\/2025\/12\/david-ellison-paramount-take-over-warner-bro-discovery\/","smart_links":{"inbound":0,"outbound":0},"traffic_boost_suggestions_count":0,"meta":[],"rendered":"","tracker_url":"https:\/\/cdn.parsely.com\/keys\/observer.com\/p.js"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/observer.com\/wp-content\/uploads\/sites\/2\/2025\/12\/GettyImages-2239552050.jpg?quality=80","coauthors_byline":"By Saleah Blancaflor","display_channel":"","thumbnail":"\"Paramount