Netflix vs Paramount over Warner Brothers has turned into a war. Paramount Skydance CEO David Ellison has now taken his campaign to acquire Warner Bros. Discovery (WBD) directly to his own employees. As reported by Business Insider, Ellison recently sent a company-wide letter which clearly outlined his vision for a combined entertainment powerhouse. The memo from Ellison came around 3 p.m. ET, hours after which Paramount launched a hostile $30-per-share all-cash tender offer to WBD shareholders. The move is aimed at outbidding Netflix’s $27.75 proposal for WBD’s streaming and studio assets, including Warner Bros. Pictures, HBO, and HBO Max.In the letter written to the employees Ellison described the deal as a chance to reshape the industry “We believe the combination of Paramount and Warner Bros. Discovery represents a powerful opportunity to strengthen both companies and the entertainment industry as a whole,” he wrote.He also emphasised that merger could lead to the creation of a scaled, forward-looking company capable of investing in growth, serving creative talent and competing with global giants such as Netflix and YouTube. Along with this, Ellison has also framed the bid in patriotic terms calling storytelling“one of America’s greatest cultural and economic exports.” He told employees the transaction was about “doing more, not less — for our company, for the industry, for consumers, for shareholders, and especially for the creative talent who power everything we do.”
Read Ellison’s full memo here
Dear Team,This morning, we filed a tender offer — a public offer to purchase shares directly from a company’s shareholders — and made an appeal to Warner Bros. Discovery shareholders to acquire WBD for $30 per share in cash.You can read the details in our press release here, but in short, we believe the combination of Paramount and Warner Bros. Discovery represents a powerful opportunity to strengthen both companies and the entertainment industry as a whole. Together, we would form a scaled, forward-looking company positioned to invest confidently in future growth and capitalize on rapidly changing industry dynamics — while better serving creative talent and consumers. A combined company would give us the reach, resources, and creative capacity to tell more exceptional stories and bring them to audiences around the world.We are taking our offer directly to shareholders because they deserve full transparency and the ability to make an informed choice. Our $30 per share, all cash proposal is superior to Netflix’s offer — $27.75 in total, including $23.25 in cash — across every dimension: higher overall value, greater certainty, a clearer regulatory path, and a future that is pro-Hollywood, pro-consumer, and pro-competition.Our motivation for pursuing Warner Bros. Discovery has been consistent from the start. We love this industry and believe deeply in its future. And we want to help preserve and strengthen one of America’s greatest cultural and economic exports: storytelling. By bringing Paramount and Warner Bros. Discovery together, we aim to accelerate both creative engines, delivering a greater slate of high-quality films, television, sports, news, and games to global audiences.Bottom line: this transaction is about doing more, not less — for our company, for the industry, for consumers, for shareholders, and especially for the creative talent who power everything we do. We’re energized by the opportunity ahead, and we’re confident that once Warner Bros. Discovery shareholders have the chance to decide for themselves, they’ll choose Paramount.As this process moves forward, I pledge to keep you informed whenever there are significant updates. Until then, let’s stay focused on our North Star priorities and continue pressing ahead. I remain deeply grateful for your hard work, dedication, and passion.Let’s go!David
