Show summary Hide summary
David Ellison made a bold power move on Tuesday. The Paramount Skydance CEO attended Donald Trump’s State of the Union address hours after raising his Warner Bros. Discovery bid to $31 per share. The timing signals momentum in Hollywood’s biggest acquisition battle.
🔥 Quick Facts
- New Bid Price: Paramount raised offer to $31 per share in cash, up from $30 per share
- Total Deal Value: Approximately $112 billion for entire Warner Bros. Discovery, including networks like CNN
- Competitive Advantage: Paramount’s breakup fee increased to $7 billion, and company will cover Warner Bros.” $2.8 billion Netflix exit penalty
- Decision Timeline: WBD board has not yet determined if Paramount’s offer is superior, Netflix deal still on track for shareholder vote March 20
What This Bid Signals About Hollywood’s Future
David Ellison’s aggressive move reshapes the entertainment landscape dramatically. By attending the State of the Union as guest of Senator Lindsey Graham, he positioned Paramount as a serious power player in Washington corridors. The symbolic timing matters in major deals.
This isn’t just about money, it’s about consolidation power. Paramount Skydance wants to acquire a behemoth spanning film studios, HBO Max, theatrical networks, and CNN itself. The company believes it has a clearer regulatory path than Netflix because of established industry relationships and political alignment factors.
Mikey Lewis drops 21 points as Saint Mary’s faces No. 9 Gonzaga tonight
Isabel May steps into Scream 7 as new final girl, star reveals honest take on horror franchise
How The New Offer Changes The Game
Paramount’s revised proposal includes sweeter terms that could reshape the bidding war. Beyond the increased $31 per share price, the deal includes a daily ticking fee of 25 cents per quarter starting after September 30, 2026. This creates financial pressure on Warner Bros. board members to decide quickly.
The company also agreed to pay Warner Bros. the $2.8 billion termination fee owed to Netflix if the deal closes. This removes a major financial obstacle and shows Ellison’s confidence in winning regulatory approval. The $7 billion breakup fee matches Netflix’s commitment, signaling serious intent.
Where Netflix Stands Now
| Bidder | Deal Value | What They Get |
| Netflix | $83 billion | Warner Bros. studios and HBO Max only |
| Paramount | $112 billion | Entire Warner Bros., CNN, networks, all assets |
Netflix’s original deal remains technically on the table for shareholders to vote on March 20. However, WBD’s board determination that Paramount’s offer could be “superior” opens a four day window for Netflix to improve its bid or negotiate. The stakes couldn’t be higher for both streaming giants competing in a brutally competitive market.
The Political Dimension Nobody’s Ignoring
Ellison’s attendance at Trump’s State of the Union amid this bidding war raises eyebrows in Washington and Hollywood alike. Larry Ellison, his father and Oracle founder, is a known Trump supporter who personally guaranteed $40.4 billion to back his son’s Paramount bid. This family backing suggests deep conviction about the deal’s strategic value.
Democrats have already requested that David Ellison preserve records related to Paramount’s communications with Trump and his administration. However, Trump has sent mixed signals about the merger, criticizing CBS ownership changes while suggesting he’s not directly involved in regulatory decisions. The political dynamics remain fluid and unpredictable heading into the final weeks of negotiations.
What Happens Next in This Historic Bidding War?
Warner Bros. Discovery’s board faces a critical decision within the next two weeks. They must determine whether Paramount’s enhanced offer truly represents a “superior proposal” under merger agreement terms. If they make that determination, Netflix will have exactly four business days to respond with improved terms or walk away entirely.
The March 20 shareholder vote looms as a critical deadline, but the real action happens behind closed doors now. Will Netflix increase its offer to compete with Paramount’s all-encompassing $112 billion proposal? Can Ellison navigate regulatory hurdles faster than competitors? The answers will reshape how Americans consume entertainment, news, and culture for decades to come. The clock is ticking in Hollywood’s most consequential power struggle.
Sources
- Deadline – Live coverage of David Ellison attending Trump State of the Union
- Variety – Paramount bid increase to $31 per share announcement
- The New York Times – Warner Bros. Discovery merger analysis and timeline
