David Ellison may still raise Paramount bid for Warner Bros. Discovery

Paramount CEO David Ellison is no stranger to big mergers. Now he's going for something far greater, and he won't back down.

Sources suggest that Ellison is considering making another overture after Warner Bros. Discovery turned down his $23.50-per-share offer, Variety reported.

The issue that has Hollywood and Wall Street both on edge is: How high will he go to make the deal?

One adviser close to Ellison put it bluntly:

Trump’s implicit support for the deal is their number one talking point.

Warner Bros. Discovery, on the other hand, is now officially for sale. Comcast, Apple, and Netflix are all interested in making takeover approaches, and Warner Bros. Discovery CEO David Zaslav and the board have started a formal assessment of these bids.

But sources claim Ellison is still ahead, with experts labeling him the front-runner and the only bidder who may be able to get the Trump administration's approval.

The tension rises as the conversation becomes more serious. With over $36 billion in debt, falling cable revenues, and 120 million streaming users at jeopardy, what happens next might change the way we watch TV and movies.

Why Ellison thinks time is ripe to nab Warner Bros. Discovery

Ellison's effort isn't random; it has a purpose. Warner Bros. Discovery is opening its books, and bidders are emerging.

This is a genuine chance to change the streaming hierarchy in Hollywood, but it may not last long.

Ellison's team thinks merging Skydance, Paramount, and WBD could create a powerful company with a lot of intellectual property, significant worldwide streaming strength, and lower costs.

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It's also a reaction to a changing media world, where size is the final line of defense and streaming conflicts are a matter of life and death.

Paramount's perceived edge as a bidder:

• Deep Pockets: Backed by his father Larry Ellison’s $330 billion fortune, David Ellison isn’t short on financial firepower.
• Political Advantage: President Doland Trump has publicly praised the Ellisons, saying, “They’re going to revitalize CBS… hopefully bring it back to its former glory.”
• Regulatory Strategy: The Ellisons are seen as more likely to win over the Trump-era FCC, while rivals like Comcast face political headwinds.
• Strategic Fit: A merged company would unite blockbuster intellectual property (DC Comics, Mission: Impossible, HBO originals), streamlining production and global distribution.
• Layoff Leverage: Consolidation could lead to thousands of job cuts — a grim prospect, but one that investors often interpret as a synergy boost.

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WBD's board has turned down all of Ellison's previous bids, which ranged from $19 to $23.50 per share.

Reports indicate that Zaslav is seeking a higher price and the freedom to accept offers from other companies. He has also suggested splitting WBD into two entities to leave all options open for a potential transaction.

What happens if Ellison ups the ante on bid for WBD?

Ellison is now in charge, as WBD's board is reviewing several proposals. The $23.50 offer isn't definitive, according to those familiar with the situation. It's simply the most recent one.

Ellison probably thinks he's in first place because he's willing to push higher, even if only a little.

Still, there are major crosscurrents:

• Zaslav wants a bidding war. Insiders say the WBD CEO is trying to “pit rival suitors against each other to get a maximum dollar figure,” as Variety reported.
• A split sale is on the table. WBD’s plan to divide into two entities — Warner Bros. (studio + streaming) and Discovery Global (TV networks) — could allow Apple or Netflix to cherry-pick assets without taking on $35 billion in legacy debt.
• Outside pressures are growing. Wall Street is already pricing in a deal. WBD shares have surged nearly 70% since reports of Ellison’s interest broke, raising the stakes for any bidder trying to walk away.

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Meanwhile, Ellison continues to cast himself as the grown-up in the room.

In a letter to the WBD board obtained by The New York Times, he argued, “We are confident that we are the best partner for WBD… creating a scaled Hollywood champion to the benefit of both our companies’ shareholders, consumers and the entertainment industry at large.”

That optimism could be well placed, but screenplays can change quickly in Hollywood.

Paramount's big bet on scale

Ellison's goal isn't merely to get a contract, but to win Hollywood's future. He wants to create a new sort of media empire by merging Paramount, Skydance, and Warner Bros. Discovery into one company.

This empire will be able to thrive in a world where conventional TV is fading and content is king.

But the hazards are just as high. If a bid were successful, it would come with a lot of debt, probably thousands of layoffs, and problems with rules throughout the world.

Timing is also an issue: Ellison's political strategy may be smart or too early, depending on which way things go with President Trump.

Zaslav is playing hardball for now, the tech titans are approaching, and Ellison is keeping his next move a secret. If he raises his offer again, that could be enough to end this Hollywood cliffhanger.

Or it may be the next scene in a movie that unfolds over a long period.

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