Additional Coverage:
- Leaked Paramount memo reveals what CEO David Ellison told staffers about its hostile bid for Warner Bros. Discovery (businessinsider.com)
Battle for Warner Bros. Heats Up: Paramount Skydance Goes Hostile, Pitches Employees on “Pro-Hollywood” Vision
The high-stakes battle for control of Warner Bros. Discovery has taken a dramatic turn, with Paramount Skydance CEO David Ellison making a direct appeal to shareholders and his own employees in a “hostile” bid to acquire the entertainment giant. This move comes as Ellison challenges an earlier winning offer from Netflix, setting the stage for a cinematic showdown in the world of media mergers.
Ellison’s latest offensive unfolded on Monday afternoon, as he sent an email to Paramount staffers shortly after 3 p.m. ET, outlining his renewed all-cash offer of $30 per share for WBD.
“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,” Ellison stated in the memo, first obtained by Business Insider.
This direct pitch to employees is part of a broader strategy to rally support for his vision, which he argues is superior to Netflix’s $27.75 offer for WBD’s streaming and studio assets, including the prestigious Warner Bros. film studio, HBO, and HBO Max. Paramount’s bid, now officially a tender offer to shareholders, aims to bypass WBD’s board and directly convince investors of its value.
Ellison emphasized a “pro-Hollywood, pro-consumer, and pro-competition” future under a combined Paramount-WBD entity, positioning it as a powerhouse capable of rivaling industry titans like Netflix and YouTube. His memo underscored a deep belief in the future of the entertainment industry, calling storytelling “one of America’s greatest cultural and economic exports.”
Interestingly, Netflix co-CEO Ted Sarandos also invoked an America-centric argument for his company’s deal, revealing at an industry conference that President Donald Trump’s primary interest in the acquisition centered on its potential to “protect and create jobs in America.”
As this corporate drama unfolds, both Netflix and Paramount are presenting contrasting narratives: Netflix touts its proposal as beneficial for consumers and the industry, while Paramount champions its vision as a safeguard and accelerator for the broader entertainment landscape. The ultimate decision now rests with Warner Bros. Discovery shareholders, who will weigh these competing visions for the future of their company.
Ellison’s Full Memo to Paramount Employees:
Dear Team,
This morning, we filed a tender offer – a public offer to purchase shares directly from a company’s shareholders – and made an appeal to Warner Bros. Discovery shareholders to acquire WBD for $30 per share in cash.
*You can read the details in our press release, but in short, 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.
Together, we would form a scaled, forward-looking company positioned to invest confidently in future growth and capitalize on rapidly changing industry dynamics – while better serving creative talent and consumers. A combined company would give us the reach, resources, and creative capacity to tell more exceptional stories and bring them to audiences around the world.
We are taking our offer directly to shareholders because they deserve full transparency and the ability to make an informed choice. Our $30 per share, all cash proposal is superior to Netflix’s offer – $27.75 in total, including $23.25 in cash – across every dimension: higher overall value, greater certainty, a clearer regulatory path, and a future that is pro-Hollywood, pro-consumer, and pro-competition.
*Our motivation for pursuing Warner Bros. Discovery has been consistent from the start.
We love this industry and believe deeply in its future. And we want to help preserve and strengthen one of America’s greatest cultural and economic exports: storytelling.
By bringing Paramount and Warner Bros. Discovery together, we aim to accelerate both creative engines, delivering a greater slate of high-quality films, television, sports, news, and games to global audiences.
*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. We’re energized by the opportunity ahead, and we’re confident that once Warner Bros.
Discovery shareholders have the chance to decide for themselves, they’ll choose Paramount. *
*As this process moves forward, I pledge to keep you informed whenever there are significant updates. Until then, let’s stay focused on our North Star priorities and continue pressing ahead.
I remain deeply grateful for your hard work, dedication, and passion. *
Let’s go!
David