Why Paramount's David Ellison Faces Growing Industry Backlash
Warner Bros Discovery has rejected Paramount's eighth takeover attempt, leaving CEO David Ellison facing mounting criticism from industry insiders and consumers alike over his aggressive acquisition strategy.
David Ellison refuses to give up his pursuit of Warner Bros Discovery despite facing rejection after rejection. The Warner Bros board told shareholders on January 7, 2026, to turn down yet another takeover proposal from Paramount Skydance. This marks the eighth time Paramount has tried to buy the studio.
Last December, Ellison launched what industry watchers called a hostile takeover bid for all of WBD. The move appeared designed to counter Netflix's competing offer for the media giant. Ellison didn't handle the latest rejection quietly, claiming Paramount's proposal beats Netflix's deal by a wide margin.
The constant bidding war affects more than just corporate boardrooms. Consumers who watch movies and TV shows bear the real cost of this acquisition drama.
Warner Bros Stands Firm on Netflix Partnership
Warner Bros' latest rejection shows the company wants nothing to do with Paramount's offer, despite Ellison's repeated attempts to win over CEO David Zaslav. The WB board made their position crystal clear by officially backing Netflix's proposal and urging shareholders to reject any Paramount Skydance bid.
A statement on WB's website spelled out their reasoning: Paramount's offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed. Our binding agreement with Netflix will offer superior value at greater levels of certainty, without the significant risks and costs Paramount's offer would impose on our shareholders.
The statement outlined serious concerns about Paramount's financial structure and the potential losses shareholders might face. Political considerations may also play a role. The Ellison family's connections to President Donald Trump could be problematic for WB's leadership, including Chief Communications Officer Robert Gibbs, who previously worked with Barack Obama.
Fans Pay the Price for Corporate Power Plays
Regardless of which company wins Warner Bros, viewers will likely suffer the consequences. Both Netflix and Paramount's bids will change how people consume entertainment content. Subscription prices could jump significantly. More corporate executives rather than creative professionals might control film and TV production decisions.
Job losses represent another major concern. Disney's acquisition of 21st Century Fox resulted in widespread layoffs and canceled projects. A similar scenario could unfold with Warner Bros' eventual merger.
Fans express frustration with Ellison's aggressive pursuit of Warner Bros, fearing it would mean tighter corporate control and reduced creative freedom. The 43-year-old CEO, worth an estimated $500 mn, continues pushing forward despite mounting opposition from both the target company and consumers.