In a stunning revelation that’s shaking Hollywood, Paramount Global has quietly made not one—but three separate acquisition offers for Warner Bros. Discovery (WBD) within a single month, according to a confidential letter from Paramount CEO David Ellison to WBD’s board of directors. The letter, obtained by The New York Times, exposes weeks of intense but largely hidden negotiations between two of the entertainment industry’s most storied giants .
Table of Contents
- The Secret Letter That Started It All
- Why Paramount Wants Warner Bros.
- Three Offers in 30 Days: What We Know
- Warner Bros. Discovery’s Response
- What This Means for Hollywood
- Sources
The Secret Letter That Started It All
Dated October 18, 2025, the letter from David Ellison—founder of Skydance Media and newly appointed CEO of Paramount—lays out a detailed case for merging the two media empires. Ellison argues that combining Paramount’s film and TV library (including franchises like Star Trek, Top Gun, and Yellowstone) with Warner Bros.’ powerhouse assets (Harry Potter, DC Comics, HBO, CNN) would create an “unmatched global content engine” capable of competing head-to-head with Disney and Netflix .
Until now, these talks were conducted under strict confidentiality, with neither company acknowledging any formal discussions publicly.
Why Paramount Wants Warner Bros.
Paramount has been under pressure from activist investors to find a strategic path forward amid declining linear TV revenues and rising streaming costs. A merger with WBD would instantly scale its streaming offering (Paramount+ and Max) and unlock billions in potential synergies—from studio operations to international distribution.
More importantly, it would give Paramount control over one of the deepest and most valuable content libraries in history—something Ellison, a known advocate for IP-driven storytelling, sees as critical in the streaming wars.
Three Offers in 30 Days: What We Know
While exact financial terms remain undisclosed, sources familiar with the discussions say Paramount’s offers evolved rapidly:
| Offer # | Timing | Structure | Key Features |
|---|---|---|---|
| 1 | Early October | All-stock deal | Paramount as surviving entity; WBD shareholders get 45% stake |
| 2 | Mid-October | Mixed cash/stock | Included $8B in cash from strategic partners (e.g., RedBird Capital) |
| 3 | October 18 | Reverse merger | WBD as parent company; Ellison to lead combined studio division |
Each iteration reflected growing urgency—and flexibility—from Paramount’s side as it sought to overcome WBD’s initial reluctance.
Warner Bros. Discovery’s Response
So far, Warner Bros. Discovery has not formally accepted any offer. CEO David Zaslav and his board are reportedly weighing the proposals against other strategic options, including a potential sale of CNN or a deeper partnership with another tech or media player.
Insiders say Zaslav remains cautious, concerned about regulatory hurdles and cultural integration challenges. Still, the sheer persistence of Paramount’s overtures suggests this saga is far from over.
What This Means for Hollywood
If a deal materializes, it would be one of the largest media mergers in history—reshaping everything from film production to streaming economics. It could also trigger a new wave of consolidation, as rivals like Sony, NBCUniversal, and even Apple reassess their positions in an increasingly winner-takes-all market.
For consumers, the merger could mean bundled streaming services, revived franchises, and fewer standalone platforms. For creators and employees, however, it may signal more restructuring and job cuts as the combined entity seeks to eliminate redundancies.
The Bottom Line
Paramount’s aggressive courtship of Warner Bros. Discovery reveals just how high the stakes have become in today’s media landscape. With streaming growth slowing and ad revenues under pressure, scale isn’t just desirable—it’s existential.
