Hostile move by Paramount
Paramount Skydance CEO David Ellison has made a move to buy Warner Bros. Discovery (WBD). He sent a message to the company’s board, shareholders, and his own employees after Netflix offered $27.75 per share for WBD’s streaming and studio assets, including the Warner Bros. film studio, HBO, and HBO Max. Ellison’s all-cash offer of $30 per share is seen as hostile because it bypasses WBD management and appeals directly to shareholders.
Memo leaked
In a memo sent to employees Monday afternoon, Ellison said a merger would create a stronger company. “We believe the combination of Paramount and Warner Bros. Discovery represents a powerful opportunity to strengthen both companies and the entertainment industry as a whole,” he wrote. He said a combined company could invest more in growth, produce more content, and reach more audiences worldwide.
Cultural value
Ellison described the deal as a chance to protect storytelling, which he called “one of America’s greatest cultural and economic exports.” He also framed the merger as a way for Paramount to compete with Netflix and YouTube in streaming and content production.
Paramount vs Netflix
Paramount’s $30-per-share cash offer is higher than Netflix’s $27.75 proposal. Ellison highlighted that Paramount’s offer provides higher certainty, a clearer regulatory path, and a future that is “pro-Hollywood, pro-consumer, and pro-competition.”
Netflix's say
Netflix co-CEO Ted Sarandos has argued that its deal would create and protect American jobs. He said the company discussed the deal’s impact on jobs with President Donald Trump. Netflix frames its bid as better for consumers and the entertainment industry, while Paramount emphasizes stronger long-term growth and creative opportunities.
Employees' role
Ellison used his memo to rally Paramount employees behind the deal. He promised to keep staff updated on developments and stressed the importance of transparency for shareholders. “Bottom line: this transaction is about doing more, not less—for our company, for the industry, for consumers, for shareholders, and especially for the creative talent who power everything we do,” he wrote.
