David Ellison’s Case for Paramount to Own Warner Bros. Discovery

<img fetchpriority="high" decoding="async" class="lazyload size-full-width wp-image-1604532" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" data-src="https://observer.com/wp-content/uploads/sites/2/2025/12/GettyImages-2239552050.jpg?quality=80&w=970" alt="Paramount Skydance CEO David Ellison against a purple background.” width=”970″ height=”647″ data-caption=’Paramount Skydance CEO David Ellison speaks during the Bloomberg Screentime conference in Los Angeles on October 9, 2025. <span class=”lazyload media-credit”>PATRICK T. FALLON/AFP via Getty Images</span>’>

On Friday, Warner Bros. Discovery’s 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’s 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’s legacy.

Ellison’s bid notably includes WBD’s TV networks—CNN, TBS, TNT and others—which Netflix did not want. The proposal is reportedly partially backed by Ellison’s father, Oracle founder Larry Ellison, and RedBird Capital Partners, which also financed Skydance Media’s $8 billion acquisition of Paramount Global that closed in August.

In an interview with CNBC’s Squawk Box today (Dec. 8), Ellison called a Netflix acquisition a “horrible deal for Hollywood” and argued that Paramount’s offer would better serve customers and the industry. “As 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’s better for the customers and it’s pro-competitive,” he said.

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—including SAG-AFTRA, the WGA and other groups—quickly 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’s long-held belief that watching movies in theaters is “outdated.”

Several politicians have also raised red flags. Senator Elizabeth Warren called the proposed Netflix–WBD combination a “nightmare” that could result in “higher subscription prices and fewer choices.” President Donald Trump has likewise voiced skepticism about the deal.

Ellison argues that Paramount’s deal would ease antitrust concerns and actually increase competition by pairing Paramount+ with WBD’s HBO Max to better rival Netflix and Disney. A combined Netflix and WBD streaming service would create one of the industry’s 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.

Some analysts speculate that the Ellisons’ close ties to Trump could give Paramount an advantage with regulators. Since making the bid, Ellison has said he has had “great conversations” with the President, though he stressed that he does not “want to speak for the President.”

Meanwhile, despite Trump’s skepticism toward a Netflix–WBD merger due to concerns about market dominance, he referred to Netflix Co-CEO Sarandos as a “fantastic man” and “great person.”

As of Monday afternoon, WBD said it would review Paramount’s offer and issue a decision within 10 days. In a statement, the board emphasized that it “is not modifying its recommendation with respect to the agreement with Netflix.” Because WBD has already signed an agreement, it would owe a $2.8 billion breakup fee if it accepts Paramount’s 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.