David Ellison's $108.4B WBD Takeover Bid: What Investors Need to Know

The media and entertainment sector is in the midst of a high-stakes takeover battle that could reshape the industry for years to come. At the center of this drama is David Ellison, heir to the Oracle fortune and CEO of Paramount Global, who is pushing a $108.4 billion all-cash offer to acquire Warner Bros. Discovery (WBD). This move has upended the deal landscape, outbidding Netflix’s $82.7 billion offer by $18 billion and forcing WBD to reconsider its corporate strategy. For investors, the stakes are clear: the winner of this bidding war could control the next generation of streaming content, global distribution, and brand power.

Understanding the David Ellison-Backed WBD Bid

Paramount Skydance, led by David Ellison, has made a bold move by launching an unsolicited all-cash tender offer for WBD at $30 per share, bypassing the company's board and going directly to shareholders. The offer values WBD at $108.4 billion, positioning it as a significantly higher and more certain alternative to Netflix’s offer. The bid is backed by $54 billion in debt from major banks like Bank of America and Citi, with equity support from the Ellison family and RedBird Capital according to AInvest. This is a classic high-stakes takeover tactic: offer certainty and a premium in cash to shareholders, especially in a market where regulatory or strategic uncertainty could delay other bids.

WBD, meanwhile, rejected Paramount’s earlier offer and opened the auction to Netflix and, more recently, Comcast. The company is also preparing for a potential 2026 split of its cable and streaming assets. Still, with Paramount now on the scene, the dynamics have shifted significantly. The key issue for investors is whether Paramount’s bid is genuinely superior or if it’s overpaying for scale in a market already saturated with streaming services.

Key Drivers and Financials Behind the Bidding War

The financials behind this deal are staggering. Paramount’s bid is all-cash, which typically appeals to shareholders because it removes the risk of future dilution or volatility in the acquiring company’s stock. That’s a significant plus over Netflix’s stock-based offer. But cash is expensive. Paramount will need to take on over $50 billion in new debt, which raises questions about its leverage and long-term financial flexibility.

Larry Ellison, David’s father and the billionaire Oracle founder, is no stranger to massive deals. Oracle’s cloud business has been a major growth engine, with 77% of total revenue coming from cloud services in 2025 and GPU-based revenue surging 336%. Still, even for a company with Oracle’s financial firepower, a $108.4 billion deal is a massive bet. The success of the WBD deal will depend not just on financial strength, but on the long-term value of the media assets and the ability to integrate them effectively.

For WBD, the challenge is whether it’s worth the price. The company has been a takeover target for months, and its stock has surged 67% in September 2025 amid speculation of a sale. But with over $34 billion in debt from its own recent merger, WBD is no lightweight. The company’s Q3 2025 performance, with expected losses and revenue of $9.13 billion, will be closely watched by shareholders and analysts as they weigh the merits of a sale versus staying independent.

What This Means for Investors and the Media Landscape

For investors, the broader implications of this deal extend beyond just WBD or Paramount. The media industry is in a period of rapid consolidation, with streaming services like Netflix, Disney+, and Amazon Prime fighting for dominance. In this context, a larger player could gain significant scale and content control. Paramount's offer could potentially unlock $3–4.5 billion in annual cost synergies by combining WBD’s content library with Paramount’s own.

Still, there are red flags. The debt required to fund the deal is massive, and regulatory scrutiny could complicate the process. WBD’s potential 2026 split is another wildcard, as it could reduce the value of the deal or make integration more complex. Netflix's stock fell 2.9% to $100.24 amid the takeover uncertainty. The streaming giant’s ability to compete on price or content strategy will be crucial to its long-term position.

Looking Ahead: What's Next for WBD, Netflix, and Paramount

The clock is ticking. Paramount’s tender offer is set to expire on January 8, 2026, meaning WBD shareholders will soon face a major decision. The key factors will be whether they believe Paramount’s all-cash offer is the best available, and whether the integration of WBD’s assets can create the expected value. For Netflix, the challenge is to either match or improve on Paramount’s offer or risk losing one of its key competitors.

For investors, the next few weeks and months will be critical. The final price, regulatory outcomes, and market reactions will shape not just the future of WBD but the broader media and streaming landscape. This is a high-stakes game, and the winner could have a dominant position in the next decade of global entertainment.