The battle over Warner Bros. Discovery continues. David Ellison, the chairman and CEO of Paramount, continues to act like someone who can’t take no as an answer and has published a letter intended for UK audiences to win them over.

Paramount attempted to take over Warner Bros. Discovery putting in a bid of $30 cash per share. Netflix, and others, also put in offers and WBD eventually settled on Netflix’s offer. While Netflix’s offer was eventually shifted to $27.75 all cash (it was a mix of stock and cash before) it was also just for Warner Bros. and not the various television stations that are also part of WBD (but includes HBO and HBO Max).

In his letter, Ellison committed to theatrical and home video, the preservation of HBO, and “increased creative output.” They have previously stated they would release 30 movies a year from the combined Paramount Pictures and Warner Bros. Currently Warner Bros. plans to release 17 films this year and Paramount has stated it wants to double its output to 15 movies. So, 30 would be less than that 32…

Ellison has also stated that European regulators would never allow Netflix to buy Warner Bros. Discovery and that Paramount’s purchase would be a much “shorter and certain path to completion.” Paramount’s purchase would likely also face a lot of scrutiny in Europe, but might have an easier path in the US where the Ellisons are friends of Donald Trump. The European Commission has yet to block this kind of merger before, so unlikely to start now, but the process would likely be long and involve remedies to ensure continued competition. Paramount’s bid also involves foreign money from Saudi Arabia, Qatar, Abu Dhabi, and more and Europe has “strong hesitation” about foreign investment in broadcast media. It’s an issue Paramount has raised in filings in the United States where Chinese media giant Tencent was an initial backer.

You can read the full letter below:

To the British creative community, fellow film lovers and television fans, the industry at large, and all who care deeply about the future of cinema and the arts.

As a producer and lifelong fan of movies and television, I am writing this open letter to speak clearly and unequivocally about the vital role visual storytelling plays in our society. Films and television transcend age, ethnicity, politics, and socio-economic status, connecting us through shared experience. They entertain and inspire us, transport us to new worlds, preserve our history, and expand our sense of what is possible. This art form is essential—and it must be protected and preserved for generations to come.

At Paramount, these beliefs are what drive us and our pursuit of Warner Bros. Discovery. We see an extraordinary opportunity to bring together our two celebrated companies, enabling us to tell more stories, reach broader audiences, and amplify impact. Just as important, we believe the creative community and audiences are best served by greater choice—not less—and by a marketplace that encourages the full spectrum of filmmaking, content creation, and theatrical exhibition, not one that eliminates meaningful competition by creating a monopolistic or dominant entity.

I want to be absolutely clear—if we succeed in acquiring Warner Bros. Discovery, here are the commitments I make to the creative community and to audiences:

• Increased Creative Output: Paramount Studios and Warner Bros. Studios will each produce a minimum of 15 high-quality feature films per year, for a total of at least 30 films annually across the group—delivering great entertainment to audiences while supporting sustained job creation across the film and creative industries. We have already increased Paramount’s output from 8 to 15 films since closing the Paramount-Skydance transaction this past August.
• Third-Party Content and Licensing: Both studios will continue to support a vibrant third-party ecosystem by licensing their films and shows across their own and third-party platforms, while remaining active buyers of content from third-party studios and independent producers.
• Preserving HBO: HBO will continue to operate independently under our ownership, enabling it to create more of the world-class content it is renowned for.
• Theatrical Commitment: Every film will receive a full theatrical release, with a minimum 45-day window globally before becoming available on paid video-on-demand (VOD), with the intention of 60–90 days or more to maximize the audience for our most successful releases. We will continue to adhere to the specific windowing commitments we have across the geographies we operate in.
• Preserving the Home Video Window: Following its theatrical run, each film will transition to the current industry-standard home video window, preserving paid video-on-demand prior to availability on subscription streaming services.

Again, I make these commitments because I have a deep love and appreciation for storytelling—especially on screen—and because I firmly believe that uniting Paramount and Warner Bros. Discovery presents a unique opportunity to build a true champion for the creative community, one that can and will bring more stories to life, support filmmakers and talent with real scale, and compete effectively on the global stage as an independent media leader. At the same time—and in stark contrast to Netflix’s path—this proposed combination is intended to strengthen competition by creating a more capable and effective rival to the dominant platforms.

At Paramount, we will do everything in our power to ensure the next generation of extraordinary films can be told and seen by the broadest possible audience on the biggest screens. And we will do so under conditions of fair access and vibrant marketplace choice—because we are pro-competition, pro-creative community, and pro-consumer. This commitment drives our pursuit of Warner Bros. Discovery, and we hope we can count on your strong support as we work tirelessly to safeguard the future of visual storytelling.

Sincerely,
David Ellison
Chairman and CEO
Paramount, a Skydance Corporation

Paramount Skydance through its website “Stronger Hollywood” is going all in with its hostile takeover for Warner Bros. Discovery. In early December, Netflix won a bidding war that included Paramount Skydance and Comcast for Warner Bros. Discovery.

In its latest press release, Paramount Skydance has said they have sent a letter to shareholders of Warner Bros. Discovery calling their offer “superior, fully financed, all-cash.”

In the letter, Paramount says this process began “about four months ago” when they offered in private a “significant premium” to Warner Bros’ $12.54 a share price. They have now offered $30 all-cash offer for all of Warner Bros. Discovery while Netflix has offered $27.50, a mix of cash and stock.

Paramount is “committed to seeing (its) tender offer through” stating the deal will likely come down to a vote at the shareholder meeting.

Paramount has stated that it is nominating a slate of directors whose entire role will be to enter into a “transaction with Paramount,” stating its their “fiduciary duty.”

It also stated it is proposing an amendment to the bylaws to require shareholder approval for “any separation of Global Networks.” It was a plan of Warner Bros. Discovery to again split into two companies with one focused on its networks and the other studios and HBO. Netflix’s offer would purchase just the studios and HBO while Paramount is attempting to purchase the entire company. The split was to begin to take place in 2026.

Paramount keeps emphasizing their $30 all-cash offer is superior to Netflix’s $23.25 cash plus $4.11 in shares (roughly $27.50) offer though consistently fails that Paramount is purchasing the whole company compared to Netflix’s offer for “half.” In theory, current WBD share holders would receive shares for the new network focused company which is believe to be called something like Discovery. So, are the networks worth $2.50 a share more which with 2.48 billion share which “values” that part at about $6.2 billion? Before its merfer with Warner Bros. Discovery Inc. in 2022 reported $10.67 billion in revenue and $34 billion in assets. Add in that the Warner Bros. also has TBS, TNT, truTV, CNN, Cartoon Network, Adult Swim, and TCM on top of Discovery’s channels that aren’t factored into that value, you can see how Paramount’s offer is far inferior.

In their latest release, Paramount is also pushing that WBD hasn’t included disclosures as to how it valued Global Networks. They have therefore filed a lawsuit to get WBD to provide the information.

They’re urging WBD shareholders to “register their preference” for Paramount’s offer.