Paramount CEO David Ellison Quietly Urges Warner Bros To Ditch Netflix As Bidding War Heats Up: Report
Paramount Skydance (NASDAQ:PSKY) CEO David Ellison reportedly met with major Warner Bros. Discovery (NASDAQ:WBD) shareholders in New York on Tuesday, pitching the studio’s $108 billion all-cash hostile bid as a superior option to rival Netflix’s (NASDAQ:NFLX) $82.7 billion cash-and-stock offer.
Investors who attended the meetings said Ellison, joined by senior legal and strategy executives, attempted to ease concerns about Paramount's financing structure, particularly its reliance on Middle Eastern investors, according to a Financial Times report published late Tuesday.
See also: Behind Paramount’s Hostile $108 Billion Bid For Warner Bros Discovery Was— Unanswered Texts?
Shareholders Warm To Paramount's Structure
Several WBD shareholders left the discussions with a favorable impression of Paramount's proposal, viewing it as potentially simpler and faster to clear regulatory hurdles than Netflix's offer, according to the FT report.
Some investors said they would be inclined to tender their shares under Paramount's bid unless Netflix improves its price or structure, the report added.
Separately, Netflix was also meeting with WBD shareholders this week, according to FT.
Paramount, Netflix, and Warner Bros did not immediately respond to Benzinga‘s request for comment.
Competing Bids And Possible Sweeteners
Netflix's bid includes $23.30 in cash and $4.50 in Netflix stock per WBD share, and the streaming giant would not acquire WBD's traditional television channels, including news channel CNN.
Meanwhile, Paramount has signaled that its $30 per share offer is not its “best and final” offer. The company is privately considering either a price increase or additional regulatory assurances to sway WBD's board, the FT reported.
Shareholders have until Jan. 8 to respond to Paramount's tender offer, while WBD’s board must issue its own response by Dec. 22.
WBD Shares Shine As Bidding War Heats Up
The possibility of a merger has sent WBD’s shares up by over 130% to $28.26 as of Tuesday’s close, according to data from Benzinga Pro. PSKY shares have dropped 7.25% to $14.64 in the past 5 days, while NFLX stock has shed 9.4% to $96.40 in the same period.
With both bidders maneuvering to win over WBD’s shareholders, the contest has evolved into a rare Hollywood showdown where financing structures, regulatory risk, and deal speed may matter as much as price.
Adding another layer of uncertainty, President Donald Trump has indicated he intends to play a direct role in the federal review of Netflix’s bid, noting that the merged company could command a "very big market share" that may raise regulatory concerns.
WBD’s investors now hold the leverage in a bidding war that could redraw the entertainment landscape.
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