Paramount Skydance Reportedly Plans Hostile Takeover of Warner Bros.

Billionaires David and Larry Ellison are reportedly preparing a potential hostile bid for Warner Bros. Discovery, challenging Netflix’s ongoing offer.

Sources told the New York Post that the Ellisons believe their $30-per-share all-cash proposal is more valuable than Netflix’s plan and are willing to push hard to secure the deal.

According to insiders, the Ellisons are frustrated with Paramount and Skydance, believing the process was unfair due to close ties between the CEOs.

One source said, “They think this was a rigged deal process because of the friendship between the CEOs, and they’re betting the shareholders will be pissed when they find out what went down.” The Ellisons are reportedly considering either a direct hostile bid or appealing directly to Warner Bros. Discovery shareholders to make their case.

The situation is drawing attention at the highest levels of government. A senior official told The Wall Street Journal that advisers in the Trump administration are closely watching the deal.

There are concerns about how Netflix plans to navigate antitrust scrutiny from the Department of Justice, which is reportedly preparing a multi-year investigation into Netflix’s influence over the streaming market. Officials remain skeptical about Netflix’s lobbying efforts and their legal defense regarding the merger.

Reports suggest that Trump has favored the Ellisons taking over Warner Bros. Discovery. Combined with public opposition from Hollywood unions like the WGA, PGA, and DGA, the potential Netflix acquisition faces mounting challenges. The merger may face both legal and shareholder hurdles before it can move forward.

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