Ellison’s Ambitions: How Far Will They Rise?
Warner Bros. Discovery (WBD) is currently facing a significant potential acquisition as industry speculation swirls around David Ellison. The owners of Skydance Media and son of tech billionaire Larry Ellison, David is making a strong push for control of WBD. His interest comes after recent merger activities, specifically his deal with Paramount.
Ellison’s Bid for Warner Bros. Discovery
This week, WBD CEO David Zaslav confirmed that the company is conducting due diligence on acquisition offers from various parties. While the specific suitors remain unnamed, Ellison is reportedly leading the charge. He has sent three consecutive bids to WBD’s board, with the latest offer set at $23.50 per share, presented on October 13. The full valuation of this offer, considering WBD’s substantial net debt of approximately $36 billion, could total around $93 billion.
- Bid History:
- Initial Offer: $19
- Second Offer: $22
- Latest Offer: $23.50
Despite his aggressive approach, all of Ellison’s bids have thus far been rejected by WBD’s board. In a notable proposal, Ellison even suggested that Zaslav could serve as co-chief executive and co-chairman should the merger proceed.
Market Responses and Competitive Landscape
Considering the current dynamics in Hollywood, other major players such as Netflix, Amazon, and Apple are also in discussions about acquiring parts of WBD, primarily its streaming and studio divisions. These companies are said to show little interest in WBD’s entire portfolio, especially its traditional TV networks.
Netflix’s co-CEO, Ted Sarandos, explicitly stated that the company does not prioritize owning legacy networks, which could temper enthusiasm for a full acquisition of WBD. In response, WBD is considering a strategic split, aiming to separate Warner Bros. from Discovery Global by mid-2026.
Future of Media Consolidation
Industry experts anticipate that consolidation will remain a pivotal theme in media. Scott Purdy, from KPMG, emphasized the need for scale among declining linear TV businesses, highlighting the compulsion for larger companies to merge. This sentiment resonates with Ellison, who views adding more content sources as essential for sustainable growth in the streaming landscape.
As Ellison’s plans unfold, recent layoffs are expected to hit Paramount Skydance, with around 2,000 jobs set to be cut. This potential merger between Paramount and WBD signals broader restructuring within a rapidly evolving media environment.
The Path Forward for WBD
The coming weeks will reveal whether Ellison increases his bid for Warner Bros. Discovery. As negotiations progress, the WBD board must weigh Ellison’s ambitions against the company’s long-term best interests. The outcome of this potential acquisition could reshape the landscape of the media and entertainment industry significantly.
