Mon Jan 05 00:00:00 UTC 2026: Summary:
The article details the ongoing battle between Paramount Skydance (backed by David Ellison and RedBird Capital, and indirectly by Larry Ellison) and Warner Bros. Discovery (WBD), led by CEO David Zaslav, for the acquisition of Paramount. Paramount Skydance feels that WBD has been unfairly favoring Netflix’s bid, potentially due to the friendship between Zaslav and Netflix CEO Ted Sarandos. They are considering legal action and haven’t ruled out increasing their offer. The article highlights the complex financial structures of the deals, particularly concerns about Netflix’s stock valuation and the debt burden on WBD’s cable properties. Despite the animosity, the article suggests that Paramount Skydance may ultimately sweeten its offer to a point Zaslav can’t refuse, potentially reaching $34 a share.
News Article:
Paramount Skydance Considers Legal Action, Mulls Sweetened Offer in Battle for Paramount Amidst Accusations of Rigged Bidding Process by Warner Bros. Discovery
HOLLYWOOD – The saga surrounding the acquisition of Paramount continues to escalate, with Paramount Skydance reportedly considering legal action against Warner Bros. Discovery (WBD) amidst allegations of a rigged bidding process favoring Netflix. Insiders at Paramount Skydance express frustration with WBD CEO David Zaslav, accusing him of shifting goalposts and unfairly favoring Netflix, potentially due to a personal relationship with Netflix CEO Ted Sarandos.
Paramount Skydance, backed by David Ellison and RedBird Capital, and indirectly by Oracle founder Larry Ellison, believes its offer is superior to Netflix’s, arguing it is a bid for the entire company and doesn’t create the same regulatory overlaps. They also raise concerns about the financial structure of the Netflix deal, specifically the valuation of Netflix stock and the substantial debt load that would be placed on WBD’s cable properties.
“There’s no f–king way they’re paying $34,” is how one person close to the Paramount Skydance team put it.”They think this bid is simply better.”
The article details how negotiations have been ongoing for four months, with Paramount Skydance submitting ever-increasing offers that have been rejected. The company is now considering its “DEFCON 1” strategy, which includes litigation, while also not ruling out further sweetening its offer. Industry insiders speculate that Paramount Skydance may ultimately offer around $34 a share to secure the deal, a number that Zaslav himself has reportedly mentioned.
Despite the tension, sources suggest that cooler heads may prevail, and a deal could be reached if Paramount Skydance makes an offer too good to refuse. However, with numerous powerful personalities involved, including Zaslav, Sarandos, and the Ellisons, the possibility of legal action remains a real threat.
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