David Ellison of Paramount Skydance met with Trump administration officials and key lawmakers in Washington, D.C., on Wednesday. His aim? To contest Warner Bros. Discovery’s potential choice of Netflix as a merger partner, despite Netflix’s higher bid in the recent bidding rounds, according to reports.
Netflix reportedly offered $28 per share, while Paramount Skydance came in at $26 to $27 per share. It’s not entirely clear how the bids stack up, but Paramount Skydance believes Netflix’s offer should be viewed with skepticism due to various uncertainties.
Apparently, Paramount Skydance has communicated multiple times this week that it may oppose a takeover involving WBD, asserting that a deal with Netflix could pose significant risks to WBD shareholders.
While in D.C., Ellison was accompanied by his legal team, which includes Makan Delrahim, a former antitrust chief at the Justice Department under Trump. They argued to regulators and Congress that Netflix’s bid to acquire Warner Bros. Studios and HBO Max should be blocked on antitrust grounds.
This merger could unite Netflix—currently the biggest streaming service in the U.S.—with third-place HBO Max and significant studios.
Ellison’s meetings in Washington rounded out a whirlwind day of negotiations for him. Both he and his father, Oracle co-founder Larry Ellison, are attempting to consolidate a media empire by acquiring WBD’s assets, which could cost them between $60 billion and $70 billion.
What concerns the Ellisons is WBD’s openness to choosing Netflix, even with antitrust worries raised by the Trump administration. Warner Bros. Discovery’s CEO, David Zaslav, seems receptive to Netflix’s offer for two key segments of the company: its streaming service and studios.
The potential acquisition shakes up the Ellisons’ plans, especially since they initially sought to buy the company at $23.50 per share last September.
Netflix has brought in seasoned communications lawyer Steve Sunshine to argue that acquiring WBD won’t give them monopolistic power in streaming, thanks to the competition from platforms like YouTube and social media.
A spokesperson for Paramount Skydance chose not to comment, and representatives from Zaslav and Netflix also did not respond to requests for statements.
Ellison’s lobbying in D.C. indicates that what once seemed a sure deal for WBD may now be at risk, largely due to the Ellisons’ financial clout and ties to the Trump administration. Paramount Skydance is making an all-cash offer for the entire company, including assets like CNN and HBO, promising that the deal will pass regulatory scrutiny.
Netflix’s bid favors cash as well but is facing resistance from the Trump administration and potential hurdles from the Justice Department. Still, Zaslav might be willing to challenge any government attempts to block the deal in court.
Alongside political lobbying, David Ellison has sent at least two letters to the WBD Board, one of which cautioned that WBD would struggle to gain President Trump’s regulatory approval, warning that uncertainty in federal court could depreciate their assets. A second letter, sent as WBD sought further bids, was reportedly even more insistent.
In this letter, Paramount Skydance criticized WBD for supposedly engaging in a process that favored a single bidder, implying conflicts of interest among executives who might expect job offers from the combined company if Netflix prevails.
Representatives from Paramount Skydance warn that since Netflix’s proposal is unlikely to receive regulatory clearance, WBD might consider adopting the offer and appealing to shareholders.
