David Ellison Launches Hostile $108B Bid for Warner Bros.

In a dramatic escalation of Hollywood's most contentious takeover battle, Paramount Skydance CEO David Ellison announced Monday morning that his company is launching a hostile tender offer to acquire Warner Bros. Discovery for $30 per share in an all-cash deal—just days after Netflix appeared to have won the bidding war.

The audacious move, which Ellison described as an effort "to finish what we started," represents a direct appeal to Warner Bros. Discovery shareholders to reject the Netflix agreement announced Friday and instead accept what Paramount characterizes as a superior offer worth $108.4 billion in enterprise value.

The Battle for Hollywood's Future

The competing bids have transformed what began as a quiet acquisition pursuit into a public spectacle that could reshape the entertainment industry's landscape. Netflix's deal, valued at $82.7 billion in enterprise value, would see the streaming giant acquire Warner Bros.' studio operations, HBO, and HBO Max for a combination of $23.25 in cash and $4.50 in stock per share—totaling $27.75 per share. Notably, Netflix's offer excludes WBD's struggling cable networks like CNN, TNT, and TBS, which would be spun off as a separate public entity called Discovery Global.

Paramount's counteroffer, by contrast, seeks to acquire the entirety of Warner Bros. Discovery, including those linear networks. According to CNBC, Ellison argued forcefully on Monday that his all-cash proposal provides "$17.6 billion more cash than the deal they currently have signed up with Netflix."

A Family Fortune and Controversial Backers

The Paramount bid is backed by significant financial firepower. David Ellison's father, Oracle co-founder Larry Ellison—whose net worth stands at approximately $277 billion—is providing substantial family backing alongside RedBird Capital Partners, which jointly funded Skydance Media's acquisition of Paramount Global earlier this year.

However, the financing structure has raised eyebrows across the industry. According to Variety and other sources, the offer includes $24 billion in backing from sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi, as well as support from Affinity Partners, the investment firm founded by Jared Kushner, Donald Trump's son-in-law. Chinese internet giant Tencent has also committed $1 billion in funding.

Paramount has moved to preempt concerns about foreign influence, stating in SEC filings that the Middle Eastern sovereign wealth funds and Affinity Partners "have agreed to forgo any governance rights—including board representation—associated with their non-voting equity investments." The company argues this structure means the deal "will not be within CFIUS's jurisdiction," referring to the Committee on Foreign Investment in the United States.

Additionally, Paramount has secured $54 billion in debt commitments from Bank of America, Citi, and Apollo Global Management to complete the transaction.

The Regulatory Wild Card

Both deals face significant regulatory hurdles, but Ellison is betting his path will be smoother. Speaking to CNBC's "Squawk on the Street," the Paramount CEO argued that "allowing the No. 1 streaming service to combine with the No. 3 streaming service is anticompetitive," suggesting Netflix's deal faces a protracted approval process with an uncertain outcome.

Paramount claims it can close its transaction within 12 months, compared to Netflix's projected 12-18 month timeline. The company is also banking on what some observers describe as a potentially favorable relationship with the Trump administration. The Hollywood Reporter noted that Ellison attended the Kennedy Center honors hosted by President Trump on December 7, and Trump has publicly praised the Paramount CEO in the past.

However, the political winds remain unpredictable. Trump commented on the Netflix-Warner Bros. deal Sunday, stating it involves "very big market share" and "could be a problem," though he also praised Netflix co-CEO Ted Sarandos' work. Adding another layer of complexity, Trump launched a scathing attack on Paramount Monday morning via Truth Social, saying the company is "no better than the old ownership" following a contentious 60 Minutes interview with Rep. Marjorie Taylor Greene.

Industry Pushback and Labor Concerns

The Netflix deal has already generated substantial opposition from Hollywood labor unions and theater owners. The Writers Guild of America issued a stark warning that the deal "must be blocked," while the Teamsters' motion picture division echoed similar concerns. Cinema United, representing theater owners, called it "an unprecedented threat" to theatrical exhibition.

These groups fear that Netflix's acquisition could accelerate the decline of theatrical windows and reduce overall content production. However, their opposition to Netflix doesn't necessarily translate into support for Paramount's bid—the guilds have historically been wary of media consolidation regardless of the buyer.

SAG-AFTRA took a more measured approach, stating that any deal "must result in more creation and more production, not less." The Directors Guild, led by Christopher Nolan, said the Netflix proposal raises "significant concerns" but stopped short of calling for its rejection.

Valuing the Unknown: Discovery Global's Future

A key point of contention between the two offers centers on how to value WBD's cable networks business, which would become the standalone Discovery Global entity under the Netflix deal. Paramount asserts these linear assets are worth only $1 per share, citing declining viewership and advertising revenue in the cable sector. Warner Bros. Discovery executives, however, have privately valued them closer to $3-4 per share.

This disagreement isn't merely academic—it fundamentally changes the comparative value of the two offers. If Discovery Global's shares trade closer to WBD's internal valuation, the Netflix deal could be worth significantly more than Paramount's headline number suggests. Conversely, if the cable networks prove worthless or become a liability, Paramount's all-cash offer would clearly be superior.

A Frustrated Suitor Goes Public

Paramount's decision to launch a hostile tender offer stems from what Ellison and his team describe as a breakdown in communication with Warner Bros. Discovery leadership. Speaking Monday, Ellison revealed that after submitting a revised $30-per-share bid on December 4—in response to feedback from WBD's board—he "never heard back from WBD CEO David Zaslav."

Paramount COO Andy Gordon expressed similar frustration on an investor call, stating, "Throughout the totality of the process we never received a single markup of the documents." The company believes it was unfairly frozen out as WBD's board moved toward finalizing the Netflix agreement.

Paramount has launched a website called "StrongerHollywood.com" to make its case directly to shareholders, arguing that its ownership would be better for the creative community, consumers, and the theatrical exhibition industry. The company projects $6 billion in cost-saving synergies from combining duplicative back-office operations while maintaining separate creative teams.

What Happens Next

The hostile tender offer sets the stage for an extended public battle for shareholder support. Warner Bros. Discovery stock rose more than 6% Monday morning on news of Paramount's bid, while Paramount shares gained approximately 3%. Netflix stock fell 3%, reflecting investor uncertainty about whether its deal will survive.

Netflix included a $5.8 billion reverse breakup fee in its agreement—money it would pay Warner Bros. Discovery if the deal fails to receive regulatory approval. WBD, meanwhile, would owe Netflix $2.8 billion if it walks away to pursue another transaction.

For shareholders, the decision isn't straightforward. Paramount offers more cash today, but Netflix provides exposure to a proven streaming growth story. The all-cash offer eliminates uncertainty around Netflix stock performance and Discovery Global's viability, but it also requires faith that Paramount can actually close the deal and deliver on its promised synergies.

The Stakes for Hollywood

Whichever deal ultimately prevails will fundamentally alter Hollywood's competitive dynamics. A Netflix-Warner Bros. combination would create a streaming behemoth with unparalleled content libraries, combining Netflix's 280 million subscribers with HBO's prestige programming and Warner Bros.' century-long film legacy. Critics worry this consolidation would reduce competition and give Netflix unprecedented leverage over creators and talent.

A Paramount-Warner Bros. Discovery merger, while also consolidating assets, would at least maintain multiple major streaming players in the market. It would combine Paramount+ with HBO Max and unite two historic studios under one roof. However, the deal's controversial financing structure and Paramount's own challenges integrating Skydance raise questions about execution risk.

As Ross Benes, senior analyst at EMARKETER, noted: "The Warner Bros Discovery acquisition is far from over. Netflix is in the driver's seat but there will be twists and turns before the finish line. Paramount will appeal to shareholders, regulators, and politicians to try to stymie Netflix. The battle could become prolonged."

For David Ellison, the hostile bid represents a high-stakes gamble that puts his relationship with his father's fortune, his nascent reputation as a media mogul, and his vision for a "stronger Hollywood" on the line. The coming weeks will reveal whether shareholders believe in that vision—or whether Netflix's streaming dominance will prove impossible to challenge.