David Ellison, head of Paramount Skydance, continues to pursue backing from investors for his $108.4 billion unsolicited bid to take over Warner Bros. Discovery. The firm revealed on Thursday an extension of its full-cash proposal to purchase the iconic media entity, now allowing shareholders until February 20, 2026, to agree. The earlier proposal lapsed on January 21, amid an ongoing legal challenge and adjustments to a rival Netflix arrangement that the company aims to counter.
In December 2025, Netflix and Warner Bros. Discovery revealed a $82.7 billion merger pact. The agreement covers a major segment of Warner Bros. Discovery's assets, though excluding certain parts of its current structure. Should it proceed, Netflix would gain control of Warner Bros. Pictures, New Line Cinema, HBO, HBO Max, along with theme parks, gaming divisions, and certain broadcast networks such as TNT, while leaving out the reality television and news assets grouped under Warner Bros. Discovery's 'Global Networks' division.
Shortly after, in December, Paramount Skydance submitted its rival $108.4 billion proposal to secure the entirety of Warner Bros. Discovery, urging investors to turn down the Netflix arrangement. To intensify its efforts, the company filed a lawsuit against Warner Bros. Discovery in January, claiming insufficient disclosure regarding the preference for Netflix. In addition to the higher valuation, Paramount Skydance argues that its transaction stands a stronger chance of regulatory clearance since it avoids reinforcing Netflix's position in the market. Warner Bros. Discovery counters that the financing for Paramount's proposal falls short and questions whether Paramount Skydance can ultimately execute the acquisition.
Ellison previously succeeded in combining Skydance with Paramount, supported by the wealth of his father, Larry Ellison, and the Ellison family's ties to the Trump administration. Commitments to ensure CBS News features varied perspectives through a designated ombudsman, and to avoid implementing diversity, equity, and inclusion initiatives at the combined entity, convinced the FCC to greenlight that merger. Ellison may have anticipated a similar smooth path for obtaining Warner Bros. Discovery, though progress has proven more challenging up to this point.