Skydance's David Ellison Outfoxed Netflix, Comcast to Win Warner Bros.

David Ellison played a long game and won.

According to a detailed report from The Hollywood Reporter, the Skydance chief outmaneuvered Netflix, Comcast, and Warner Bros. Discovery's own leadership to secure control of the studio giant. The saga began in late 2023, when then-Paramount CEO Bob Bakish had lunch with WBD CEO David Zaslav to float a deal. Warner Bros. executives even ran due diligence on Paramount before declining to engage.

Just weeks prior, Ellison had entered talks with Paramount's controlling shareholder, National Amusements. The Paramount deal closed in July 2024. Then Ellison turned his attention to WBD.

Ellison and Zaslav met for the first time a month later at Zaslav's Beverly Hills home. Ellison's first offer was what one person called a "lowball": roughly $19 per share, only 60 percent in cash. WBD's board unanimously rejected it.

That's when the billionaires entered the picture. Ellison's father, Oracle co-founder Larry Ellison, and Zaslav's mentor John Malone joined the conversation via Zoom on Sept. 24.

Over the following months, Ellison raised his bid and even floated the idea of Zaslav staying on as co-CEO. WBD remained committed to its plan to split the company in two.

Then, in October, news leaked that Paramount was actively pursuing WBD. Netflix CEO Ted Sarandos and Comcast's Brian Roberts both reached out to Zaslav unsolicited, expressing interest in the streaming and studio assets. Comcast proposed spinning out NBCUniversal to merge with WBD's content business. Netflix offered $27 per share in cash and stock for that same piece.

Ellison continued upping his bid and meeting with Middle East sovereign wealth funds for financing. But his team felt WBD was favoring other bidders.

On Dec. 4, Sarandos called Zaslav with an ultimatum: Netflix was ready to sign that evening or walk. As the WBD board met, Ellison sent Zaslav a text message that went unanswered, reiterating his offer's certainty, cash value, and speed.

Netflix announced its deal the following morning. Ellison's team went to war.

On Monday, Dec. 8, Paramount launched a hostile tender offer for Warner Bros.: $30 per share, all cash. Hours later, Sarandos told attendees at a UBS conference that "we have a deal done."

Paramount's team filed the takeover with federal regulators, starting a ticking clock. They also filed suit in Delaware Chancery Court to gather internal communications and threatened a proxy fight.

The pressure worked. Investors grew anxious about Netflix's complex deal. Prominent money manager Mario Gabelli said he'd likely tender shares to the all-cash offer.

Netflix changed its bid to all cash and gave WBD a window to negotiate. Ellison countered at $31 per share all cash, adding a "ticking fee" that would increase the price the longer the deal took.

On Feb. 26, Sarandos met with White House officials. Shortly after, WBD declared Paramount's offer superior. Netflix withdrew. "This transaction was always a 'nice to have' at the right price, not a 'must have' at any price," Sarandos and Netflix co-CEO Ted Peters said.

Paramount and WBD sealed their deal. Regulators in 65 countries, including the U.S., EU, and China, cleared the merger.

But a coalition of 12 state attorneys general, led by California's Rob Bonta, sued to block it. The Writers Guild of America joined. The suit argued the merger would harm competition in cable TV and theatrical films.

Ellison wrote a New York Times op-ed arguing the suit was really about political concerns over his stewardship of CNN. Connecticut AG William Tong later said he wanted "full divestiture of CNN and CBS News."

With a ticking fee adding pressure, Ellison floated moving the companies out of California. States like Texas and Tennessee courted him.

California Governor Gavin Newsom helped broker a settlement. The deal required no divestitures, only commitments to theatrical releases and separate cable carriage negotiations. A $30 million per film penalty applies if theatrical promises are broken; a court could force the sale of BET, Comedy Central, and other channels.

Bonta defended the settlement as "strong" but added, "I don't think these two companies should merge."

The settlement cleared the way for the combination of Paramount and Warner Bros. Discovery under Ellison's control.

• David Ellison
• David Zaslav
• Larry Ellison
• Netflix
• Paramount+
• Skydance
• Warner Bros. Discovery