David Ellison, CEO of Paramount Skydance, made a $108 billion hostile takeover bid for Warner Bros. Discovery that was better than Netflix’s competing offer. Ellison wrote a letter directly to WBD shareholders on December 10, saying that his deal would get things done faster even with regulatory scrutiny. He stressed Paramount’s dedication to theatrical releases, promising to release more than 30 films a year to protect Hollywood’s ecosystem.
Ellison points out that Netflix controls 51% of Europe’s subscription video-on-demand market. He says that regulators like the European Commission would stop the company from buying Warner Bros. to protect competition. European antitrust experts, on the other hand, say that both bids have the same problems, which makes Ellison’s scare tactic less effective. Netflix has a wider market definition that includes YouTube and TikTok, while Ellison’s SVOD focus is more limited.
Ellison sent unreturned text messages to Warner Bros CEO David Zaslav, saying he wanted to work with them before making the hostile bid. The Ellison family trust backs Paramount’s sixth offer, which is worth $77.9 billion in cash. This increase comes after Skydance merged with Paramount, where Ellison focuses on big hits like Top Gun 3 and Star Trek.
