Hostile Takeover: David Ellison and Paramount Skydance’s Bold $108B Gambit for Warner Bros

A hush-brown light swept across the Hollywood hills on December 8, 2025 and out burst a power move worthy of a blockbuster script. Picture this: Paramount Skydance marching into the war room of Warner Bros. Discovery (WBD) with an audacious all-cash offer. At $108.4 billion (that is, $30 per share), it wasn’t just an offer, it was a gauntlet thrown down. This wasn’t a friendly merger; it was a hostile takeover intent on rewriting Hollywood’s hierarchy.

Captaining it is David Ellison, scion of one of tech’s wealthiest dynasties, armed with movie-studio ambition instead of code.

Let’s break down with this blog how we got here and why the stakes have just gone nuclear.

Why Warner Bros. Is the Crown Jewel

WBD is more than just another media company, it’s a vault of Hollywood royalty. Between its storied film and TV studios, legacy cable networks, HBO and HBO Max, and valuable IP that spans superhero universes to iconic sitcoms, it’s a content goldmine. Think Harry Potter, Game of Thrones, The Last of Us, The Big Bang Theory, Friends, DC Universe films, Lord of the Rings rights, plus classics like Looney Tunes.

For a world where streaming platforms fight tooth and nail for eyeballs, this catalogue is the ultimate cheat code. That treasure trove is exactly why rival titans are lined up. For the streaming-first world of 2025, owning premium, evergreen content is everything.

When Netflix first stepped into the race, the bid was for WBD’s studios and streaming assets: HBO/HBO Max, DC, film/TV studios, but not cable networks like CNN or Discovery. Paramount, on the other hand, sees value in the entire ecosystem of broadcast, cable, theatrical, global licensing, the works.

The Netflix Deal for WBD, What it Meant

Just days before Ellison’s bombshell, Netflix and WBD had announced a deal: roughly $82.7 billion for studios and streaming arms. That would bring iconic titles under Netflix’s banner, from Game of Thrones to HBO originals to big-budget Warner films.

WBD investors would receive roughly $23.25 in cash + $4.50 in Netflix stock per share.

But the Netflix offer raised a concern: cable networks would be spun off. That left room for a rival who wanted the whole empire.

Enters Paramount Skydance, determined to buy everything from Batman to CNN under a single roof.

Paramount Goes Hostile; Here’s the Bid

On December 8, Paramount Skydance launched an all-cash tender offer of $30 per share, valuing WBD at $108.4 billion, that’s  roughly $18B more in cash value than Netflix’s proposal.

This wasn’t a polite phone call. Subtitle it “The Takeover Strikes Back.” It was a hostile offer issued directly to shareholders, not the board. Paramount claims earlier outreach was brushed off and the WBD board “never engaged meaningfully,” according to filings.

Financing is backed by a heavyweight mix including major banks, Middle-East sovereign funds, and support from Larry Ellison’s ecosystem.

In short: the gloves are off.

The Market Responds: Stocks Move Like Opening Credits

Hollywood drama = market volatility, and Monday delivered exactly that.

Here’s how investors reacted to the brewing bidding war:

• Warner Bros. Discovery (WBD): jumped and closed 4.4% up, driven by hopes of a higher takeover price.
• Paramount Skydance Corp (PSKY): closed roughly 9% up, reflecting investor enthusiasm that Paramount’s aggressive play could reshape its future or force strategic alternatives.
• Netflix Inc. (NFLX): fell about 3.44%, as markets digested the prospect of an expensive bidding war and heightened regulatory uncertainty.

Source: Google Finance

The stock reaction clearly shows investors think this story has sequels and possibly plot twists lined up ahead.

Why Ellison Is Playing the Long Game

• A bid for the full package. Unlike Netflix, Paramount wants everything: the studios, HBO, DC, CNN, Discovery, sports networks, and the licensing machine that supports them.
• Regulatory strategy. Ellison’s backers have reportedly waived governance rights to reduce antitrust concerns which is a preemptive smoothing of regulatory pathways.
• Certainty over speculation. All-cash offers are powerful. Shareholders don’t have to worry about future volatility; the money lands upfront.

What to Watch: The Sequel Is Still Unwritten

• Shareholder reaction. WBD’s board hasn’t changed its recommendation yet. The Netflix deal still stands for now.
• Regulatory hurdles. Netflix + WBD creates the biggest streaming powerhouse ever. Paramount + WBD creates an old-plus-new media behemoth. Either way, regulators will go over this with a magnifying glass.
• Cable network fate. Will CNN be revived? Repurposed? Sold? This remains an open question.
• The theatrical impact. Netflix owning Warner could shrink theatrical windows. Paramount owning Warner could revive them or consolidate them.

Final Act; Who Wins the Hollywood Throne?

This isn’t just an acquisition. It’s an identity crisis for Hollywood, playing out in real time. On one side is David Ellison betting billions that a unified, cross-platform media empire is the future. On the other is Netflix, the original streaming disruptor trying to secure Hollywood’s crown jewels once and for all.

So, get those popcorn ready, expect cliffhangers, press statements with plot twists, and possibly a sequel where another bidder enters the arena. Because in Hollywood, nothing ends cleanly; especially not a $108B takeover battle.

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