David Ellison's Hostile Takeover Bid for WBD: What Recent Moves Mean for Investors

A major shakeup is unfolding in the entertainment industry as David Ellison, CEO of Paramount Skydance, announced a hostile $30-per-share all-cash bid for the entirety of Warner Bros. Discovery (WBD) on December 8, 2025. This move directly challenges a $72 billion agreement between Netflix and WBD for the film and streaming assets of the company — a deal that now faces significant scrutiny and competition. For investors, this development is more than just a media deal: it raises important questions about regulatory hurdles, market concentration, and the future of streaming. With tensions rising between major studios and streaming giants, Ellison's bold move could reshape the competitive landscape—and potentially disrupt Netflix's growth trajectory.

The Big Picture: Understanding the WBD Shakeup

This isn't the first time WBD has been in the spotlight this year. The company had previously entered into a deal with Netflix, which would see the streaming giant acquire WBD's film studio and streaming assets, including HBO Max, for $72 billion. However, this deal did not include WBD's valuable TV networks like CNN and TNT Sports—leaving a gap that Paramount is now aggressively seeking to fill.

David Ellison's offer of $30 per share values WBD at $108.4 billion, significantly higher than the Netflix-WBD deal's implied valuation of $27.75 per share. The offer is backed by a mix of private capital and institutional debt, including $54 billion in financing from Bank of America, Citi, and Apollo Global Management, and an additional $24 billion from sovereign wealth funds in Saudi Arabia, Abu Dhabi, and Qatar, as well as Jared Kushner's Affinity Partners.

What's Driving This Move and Why Now

Ellison's decision to bypass WBD's board and go directly to shareholders with this offer suggests a high level of urgency. According to Paramount, it submitted a revised offer on December 4 but received no response, prompting the move to launch a hostile bid. This timing is strategic, as it follows the surprise announcement of the Netflix deal on December 5, which caught many in the industry by surprise.

By acting quickly, Paramount aims to leverage the uncertainty and regulatory challenges that come with the Netflix deal.

Regulatory scrutiny has already emerged as a key issue. The Trump administration has expressed heavy skepticism about the Netflix deal, with officials reportedly concerned about antitrust risks and the potential for Netflix to gain an even stronger hold on global streaming. Paramount argues its all-cash offer is more pro-competitive and can close in just 12 months—significantly faster than the 18 months expected for the Netflix deal.

What This Means for Investors and the Market

For investors, this situation presents both opportunity and uncertainty. Netflix shares have already reacted to the news, falling more than 3% in premarket trading to their lowest level since April 2025. Analysts from major firms like Rosenblatt Securities and Pivotal Research Group have downgraded Netflix stock, citing concerns over the length of the regulatory approval process and the broader uncertainty of the deal's outcome.

Paramount, on the other hand, is positioning itself as a more certain and value-driven alternative. With its all-cash offer and streamlined regulatory path, the company is appealing directly to WBD shareholders. If successful, this acquisition would be one of the largest in entertainment history and could reshape the industry by giving Paramount control of some of the most valuable TV networks in the U.S. market.

Looking Ahead: What to Watch Next

While Paramount's bid is ambitious, success is far from guaranteed. WBD could still push forward with the Netflix deal, especially if the Trump administration raises enough regulatory red flags. Meanwhile, Paramount's ability to secure final approvals and close the deal by January 8, 2026 will be a key test of its strategy.

Investors will also be watching closely for any further comments from the Trump administration and other regulatory bodies, which could influence the outcome of both bids. Additionally, the market's reaction to Netflix's stock in the coming weeks will provide further insight into how Wall Street views the likelihood of the deal going through.

At the end of the day, this is a pivotal moment for the entertainment and streaming industries. Whether it's Netflix securing the deal or Paramount making a bold move to reshape the landscape, one thing is clear: the battle for media dominance is heating up—and the stakes have never been higher.