Yahoo Finance·2025-12-21 13:00Core Viewpoint - David Ellison, son of Oracle co-founder Larry Ellison, is actively pursuing a bid for Warner Bros. against Netflix's acquisition, appealing directly to shareholders with a $30-a-share offer, while also leveraging his father's connections to influence regulatory decisions [1][19]. Group 1: Bid Dynamics - Warner Bros. board decided to sell its studio and HBO Max to Netflix after a chaotic bidding process, which included multiple missteps from Ellison's team [2]. - Ellison's initial offer of $19 per share was rejected by Warner Bros. due to concerns over price and debt implications [12]. - Netflix's final offer included $27.75 per share in cash and stock, which was deemed superior to Ellison's proposals [17]. Group 2: Strategic Moves - Ellison's team attempted to appeal to Warner Bros. shareholders, arguing that his proposal would be more beneficial for the entertainment ecosystem [20]. - Paramount's executives expressed confidence in their ability to secure the deal, citing their unique position to navigate regulatory challenges [15]. - Ellison's campaign has included creating a website to promote his bid as a means to ensure a competitive entertainment market [20]. Group 3: Market Reactions - Warner Bros. shares have declined by 15% over the past month as concerns grew about the potential loss of the deal [7]. - The Writers Guild of America and theater owners view Netflix's acquisition as a significant threat to the film industry [21]. - Analysts suggest that Ellison may need to increase his offer to sway Warner Bros. shareholders, as many believe the competition is not over yet [24]. Group 4: Financial Considerations - Paramount would need to account for a $2.8 billion obligation to Netflix if they withdraw from the bidding process [25]. - Warner Bros. is seeking assurances from Ellison regarding the financial backing of his offer, emphasizing the need for personal guarantees [25]. - Ellison's financial backers have expressed confidence in his ability to deliver on his commitments, countering doubts about his financing [26].