Paramount Global Shifts to Hostile Takeover Strategy for Warner Bros. Discovery

The battle for control of Warner Bros. Discovery has entered a new, more aggressive phase. After having three separate friendly acquisition proposals rejected, Paramount Global is now actively exploring a hostile takeover attempt. Paramount CEO David Ellison remains undeterred despite the WBD board's refusal of offers ranging from $19 to $23.50 per share.

In a significant strategic pivot, Ellison is considering taking his proposal directly to Warner Bros. Discovery shareholders, bypassing further negotiations with the company's board. Paramount signaled this approach by refusing to sign a confidentiality agreement with WBD that would have prevented hostile takeover maneuvers, thereby keeping all strategic options available.

The media giant's latest proposal demonstrates its heightened determination. Paramount increased the cash portion of the offer from 60 to 80 percent while raising the breakup fee to $2.1 billion. In a further effort to salvage the deal, Ellison even extended a co-CEO position to WBD chief David Zaslav.

Strategic Pressures Mount for Warner Bros. Discovery

While facing Paramount's aggressive advances, Warner Bros. Discovery confronts its own complex challenges. The company is conducting what it terms a "comprehensive review of strategic alternatives," which includes potentially splitting its streaming/studios business from its network operations. However, deeper complications persist:

Should investors sell immediately? Or is it worth buying Paramount Global?

• The Writers Guild of America threatens regulatory obstacles against any potential merger
• Netflix has already engaged an investment bank to evaluate its own bid for WBD studios
• WBD's board faces substantial pressure to present shareholders with a convincing strategic path forward

The Strategic Vision Behind the Move

Paramount's aggressive posture stems from a clearly defined vision. Ellison aims to merge HBO Max and Paramount+ into what he envisions as a "super-platform" while boosting theatrical business through the production of 30 films annually. This strategy has gained momentum since Paramount's completion of its $8 billion merger with Skydance Media in August 2025.

Concurrent with the takeover battle, Paramount is restructuring its internal leadership. George Cheeks, Chairman of TV Media, introduced his new team for television brands this week. The company appointed Bryon Rubin as COO and CFO of the TV division, tasking him with strengthening flagship brands including CBS, BET, and MTV through focused development of existing franchises and new content.

The critical question remains whether these strategic maneuvers will sufficiently reassure investors. Market attention now turns to Monday, when Paramount releases quarterly earnings—an event that may reveal the company's next move in the high-stakes acquisition contest.