New York Post·2026-01-08 22:10Core Viewpoint - Paramount Skydance believes it has an advantage over Netflix in acquiring Warner Bros. Discovery (WBD), citing issues with Netflix's deal as a contributing factor to its confidence [1]. Group 1: Paramount's Position - Paramount and CBS's leadership, David and Larry Ellison, reaffirmed their commitment to a merger with WBD, offering a "hostile" bid of $30 per share, totaling $78 billion [2]. - The Ellisons argue that WBD is facing self-inflicted challenges, which have led to the rejection of their offer [2][11]. - Paramount's all-cash bid remains unchanged despite ongoing negotiations, with some investors, including Mario Gabelli, expressing preference for cash offers [12]. Group 2: WBD's Challenges - WBD criticized the Ellison's deal for relying on $85 billion in debt, labeling it a "leveraged buyout" and demanding personal guarantees from Larry Ellison [3][11]. - WBD's channels are under pressure due to cord-cutting trends, which have negatively impacted their market position [6][15]. - The launch of Versant, a spinoff from Comcast, has seen its stock drop nearly 30%, indicating market volatility in the sector [6]. Group 3: Netflix's Deal Dynamics - Netflix's offer includes $27.75 per share in cash and stock, with an additional promise of $3 per share from the planned sale of WBD's cable properties [5]. - Netflix's stock has lost over $150 billion in value recently, raising concerns among investors about the company's strategic direction [9]. - The potential merger of Netflix with WBD's HBO Max raises antitrust concerns, particularly given the relationship between Larry Ellison and regulatory figures [10].