Paramount’s David Ellison Champions Competitive Strategy in Warner Bros. Discovery Bid

David Ellison, chair and CEO of Paramount, is actively pursuing a competitive strategy aimed at Warner Bros. Discovery. His efforts include a $108.4 billion hostile bid, positioned against rival Netflix. Dated Thursday, Ellison’s open letter addressed the global creative community, stressing the importance of competition.

Key Commitments to Creative Community

In his letter, Ellison made several commitments aimed at fostering creativity in film and television. These are foundational to the bid:

• Production of at least 30 theatrical features annually.
• Maintaining HBO as an independent operation.
• Guaranteeing a 45-day global theatrical release window before any video-on-demand availability.
• Preserving the home video window post-theatrical runs, targeting 60-90 days for top releases.
• Ensuring licensing of films and shows across various platforms.

Increased Production Focus

Paramount has already ramped up its film output from eight to 15 productions since finalizing its transaction with Skydance in August. Ellison’s vision includes both Paramount Skydance and Warner Bros. Studios contributing a minimum of 15 high-quality films each year.

Contrast with Netflix Strategy

Ellison positioned his bid as a counter to Netflix’s market strategy, which he sees as monopolistic. His goal is to foster a more competitive environment in the entertainment sector. By doing so, he believes audiences will benefit from greater choice and diversity in content.

Background on Netflix’s Deal

Netflix, led by co-CEO Ted Sarandos, recently finalized an $83 billion deal with Warner Bros. Discovery. Initially announced on December 5, it included a significant cash component valuing the company at approximately $27.75 per share. Recently, Netflix shifted to an all-cash offer.

Support Behind Ellison’s Bid

Ellison’s proposal is supported by notable figures, including his father, Larry Ellison, co-founder of Oracle. Additional backing comes from partners such as RedBird Capital Partners and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi.

Through his persistent lobbying efforts, David Ellison aims to reshape the competitive landscape within the media and entertainment industry. His ambitious strategies could significantly impact Hollywood’s future dynamics.