The battle for Warner Bros. Discovery (WBD) has intensified, as Paramount Skydance has renewed its all-cash offer, now backed by a $40 billion personal guarantee from Oracle billionaire Larry Ellison. This move is a direct response to WBD’s recent rejection of Paramount’s initial bid in favor of a deal with Netflix, and marks the latest escalation in a high-stakes contest for control of the storied Hollywood studio.
The Stakes: Why This Matters
The struggle over WBD is not simply about corporate mergers; it signals a wider shift in the media landscape. Streaming giants are aggressively consolidating their position, seeking to own more intellectual property and control distribution. This deal, whether it lands with Paramount or Netflix, will reshape how movies and TV shows are made and delivered to audiences. The $40 billion guarantee from Ellison is significant because it eliminates a key objection raised by WBD’s board: the lack of firm financial backing.
The Revised Offer: A Direct Challenge to Netflix
On Monday, Paramount Skydance announced the amended offer, explicitly addressing concerns previously raised by WBD. The press release highlighted Ellison’s irrevocable commitment to provide the equity financing and cover potential damages. This is a sharp contrast to the previous deal with Netflix, valued at $82.7 billion, which WBD initially favored.
Paramount’s initial hostile bid, valued at $108.4 billion or $30 per share, was previously rejected by WBD’s board, who deemed it “illusory.” The board favored Netflix’s agreement, citing its “binding” nature and lack of reliance on uncertain financing. Paramount’s latest move, backed by a billionaire’s checkbook, is designed to overcome that skepticism.
A History of Rejection and Persistent Pursuit
This isn’t the first time Paramount has pursued WBD. As reported by CNBC in October, the studio had already seen three previous takeover offers rejected before Netflix entered the picture. Paramount Skydance CEO David Ellison emphasized the superior value of his company’s all-cash offer in Monday’s statement, claiming it will boost content production, theatrical releases, and consumer choice.
“Our $30 per share, fully financed all-cash offer was on December 4, and continues to be, the superior option to maximize value for WBD shareholders.”
The Bottom Line: A Waiting Game
WBD’s board now faces a critical decision. They must weigh the certainty of Netflix’s deal against Paramount’s aggressive new bid, backed by unprecedented financial assurance. Whether the board will reconsider is unclear, but the stakes are clear: the future of Warner Bros. Discovery hangs in the balance. The outcome will have far-reaching consequences for Hollywood and the streaming wars, as the industry continues to consolidate into fewer and fewer hands.
