The David Ellison-Driven Shift in Media Ownership and Its Impact on Paramount's Value

The media landscape is undergoing a seismic transformation, driven by the aggressive strategies of , CEO of Paramount Global. At the heart of this shift lies a dual narrative: the undervaluation of Paramount's assets and the emergence of dynamics as a tool for reshaping industry power structures. These developments, occurring against a backdrop of fragmented ownership and volatile valuations, offer a compelling case study in the evolving economics of media consolidation.

The Case for Undervaluation

Paramount Global's stock price of $11.04 as of August 2025 starkly contrasts with intrinsic value estimates derived from discounted cash flow (DCF) models.
Alpha Spread calculates , . Similarly,
DCF analyses of Paramount Skydance , , respectively. These figures are further supported by a price-to-sales (P/S) ratio of 0.61x for Paramount Skydance, well below the industry average of 1.09x
according to Yahoo Finance.

However, not all models concur.
ValueInvesting.io reports , . Such discrepancies highlight the challenges of valuing media companies in a rapidly shifting environment, where assumptions about future cash flows and market share are inherently uncertain. Yet, the consensus among DCF and P/S analyses-two of the most robust valuation tools-strongly suggests that Paramount's current market price fails to reflect its strategic assets,
as detailed by Digrin.

Hostile Takeover as Strategic Weapon

The most striking manifestation of Ellison's vision is Paramount's $30-per-share hostile bid for Warner Bros. Discovery (WBD),
unveiled in late 2025. ,
as reported by Forbes. By bypassing WBD's board and appealing directly to its shareholders, Ellison is leveraging the hostile takeover as a means to accelerate media consolidation and counter Netflix's dominance in the streaming wars.

This strategy is not without precedent. Ellison's father, Larry Ellison, has long advocated for aggressive corporate maneuvering, and
the financial backing of sovereign wealth funds appears to bolster Paramount's credibility in this high-stakes bid. The move also reflects a broader trend: as streaming platforms grapple with razor-thin margins, consolidation is increasingly seen as a path to profitability.
Paramount's focus on domestic profitability for Paramount+ by year-end 2025 underscores this logic.

Ownership Structure and Institutional Dynamics

Paramount's ownership structure complicates the hostile takeover narrative.
Institutional investors, including Vanguard Group, BlackRock, and State Street Corp, collectively hold a significant stake, .
National Amusements, which controls , has pledged to align with the board's 2025 Annual Meeting recommendations. This duality-where voting power is concentrated in one entity and economic ownership is dispersed-creates a unique tension. While National Amusements' influence could sway the outcome of the WBD bid, the broader institutional base may prioritize short-term returns over strategic bets, particularly given the stock's apparent undervaluation.

Implications for the Media Sector

The Paramount-WBD saga signals a broader shift in media ownership. As face declining ad revenues and rising content costs, may become a preferred route for scaling operations. The , however, remains a wildcard. Both Paramount's and Netflix's bids for WBD will face intense scrutiny, with antitrust concerns likely to delay or reshape the deals.

For investors, the key question is whether Paramount's undervaluation reflects a temporary market mispricing or a deeper structural issue. The latter would imply that Paramount's , while ambitious, is insufficient to compete with Netflix's scale. The former suggests an opportunity to capitalize on a market that underestimates the value of Paramount's subscriber base and content library.

Conclusion

David Ellison's leadership has redefined the parameters of media ownership, blending hostile takeovers with aggressive valuation arguments to position Paramount as a challenger to streaming giants. While the intrinsic value of Paramount's shares remains contentious, the strategic logic of its bid for WBD is clear: to create a media powerhouse capable of countering Netflix's dominance. For the sector, this marks a pivotal moment. As consolidation accelerates, the ability to navigate regulatory, financial, and institutional complexities will determine which players emerge as leaders-and which are left behind.