If Paramount Loses Bid for Warner Bros. Discovery, Ellison Has a Backup Plan

With the competition between Paramount and Warner Bros. nearing its end, reports indicate that the Paramount-Skydance offer remains strong, even if Warner Bros. Discovery prefers a deal with Netflix.

Sources speaking to The New York Post describe the competition between the two major entertainment companies vying for Warner Bros. Discovery assets as incredibly tight – a true toss-up with each having an equal chance of winning.

If Netflix ends up being the winning bidder, Paramount Skydance has a backup plan ready to go.

Netflix May Be the Favorite — But Not by Much

Talk within Warner Bros. Discovery suggests Netflix is now the leading candidate to acquire the studio, according to the Post. The report highlights the close relationship between Netflix’s Ted Sarandos and WBD’s David Zaslav, with some board members believing Netflix would manage the studio’s properties more effectively.

Just that belief could be enough to make bidders favor Netflix’s offer, which is mostly cash. However, Paramount Skydance is still actively trying to convince people to choose their all-cash offer for the entire company, including HBO, CNN, and its cable channels.

Sources familiar with the situation told the Post that the competition is still very close – a real “horse race,” as one insider put it – and Skydance intends to fight hard to remain competitive.

Skydance’s ‘Plan B’: Go Straight to the Shareholders

If Warner Bros. Discovery’s board chooses Netflix as a potential buyer, David and Larry Ellison of Skydance aren’t planning to back down. Sources say they’re developing a strategy that resembles a hostile takeover, meaning they would go directly to the company’s shareholders instead of working with the board.

According to the Post, their argument is that Netflix’s offer will likely fail due to regulatory challenges. The article reports that the plan is expected to be blocked by the Department of Justice’s antitrust division and would probably be defeated if taken to federal court.

Unlike other offers, the Ellisons claim theirs is certain to be approved by regulators, allowing shareholders to receive immediate payment for their shares.

According to one high-ranking company insider who spoke with the Post, the Ellisons are preparing for a potential loss and don’t intend to concede easily. They’re developing backup plans in case things don’t go their way.

That single move demonstrates just how determined Skydance is to compete with Warner Bros.

Regulators Could Be Netflix’s Biggest Problem

Besides the issues raised by the U.S. Department of Justice, international governments aren’t enthusiastic about Netflix acquiring Warner Bros. Discovery.

According to a government source cited in the Washington Post, a potential merger between Netflix and Warner Bros. Discovery – which would unite the two largest streaming services globally – is expected to face significant resistance from European regulators.

That’s a massive hurdle for any international deal.

Officials who worked on regulations during the Trump administration are less worried about potential antitrust issues with the proposed merger between Paramount and Skydance. This gives Skydance a stronger legal position, which the company is now using to its advantage.

The Money Question: Is Netflix’s Offer Really Better?

Currently, Paramount Skydance is offering around $25 per share. Netflix might offer closer to $30, but Skydance believes that offer should be adjusted downwards to account for the fact that receiving the money will take time.

They believe the Netflix deal could face lengthy legal battles, potentially taking two years or more to resolve.

While that happens, WBD’s assets would continue to decline in value.

The longer Netflix fights regulators, the worse it gets for shareholders waiting on payout.

Skydance is positioning itself as the fast, clean option.

Even if Netflix succeeds in the current deal, sources close to the Ellisons suggest they might hold off, hoping Netflix’s agreement falls through. Then, they could re-enter negotiations without the pressure of a bidding war driving up the cost.

Hardball at its finest.

Comcast Lurks in the Background… Barely

Comcast has made another offer and is still technically a contender, but it would likely need to borrow money to compete with bids exceeding $25 per share. Experts, including its own financial advisors, consider Comcast a long shot in this deal.

Considering Chief Justice Roberts’ difficult history with President Trump, a situation involving Comcast seems even more improbable.

The Final Stretch in the Paramount Warner Bros. Fight

Whoever ultimately acquires Paramount, the outcome will significantly change the entertainment industry, impacting everything from how we stream movies and shows to how films are released in theaters, and even how major studios compete with each other.

As a movie buff, it seems like Netflix is really trying to outdo Disney, and they think getting HBO Max and Warner Bros.’ amazing collection of films and shows is the way to do it. Then there’s Skydance, who isn’t just interested in the content – they want to buy the whole Warner Bros. Discovery company to create a massive, self-sufficient studio, controlling everything from production to streaming. It’s a big power play!

And the clock is ticking. WBD could pick a winner any day now.

It’s very clear that Paramount Skydance remains a strong competitor, and Netflix can’t afford to become complacent.

If the board of directors doesn’t select the Ellisons today, the Ellisons intend to directly address shareholders tomorrow.

2025-12-04 18:58