Paramount chair and CEO David Ellison is not giving up on his relentless pursuit of Warner Bros. Discovery and his plan to counter rival suitor Netflix.
In an open letter sent out on Thursday to journalists around the world, including in the U.K. and France, Ellison outlined specific commitments for the creative community, pledging that the combined entity would produce at least 30 theatrical features annually while maintaining a competitive marketplace structure.
In the letter, which was written in different languages and addressed to the “creative community, fellow film lovers and television fans, the industry at large,” Ellison emphasized that audiences “are best served by greater choice – not less – and by a marketplace that encourages the full spectrum of filmmaking, content creation, and theatrical exhibition, not one that eliminates meaningful competition by creating a monopolistic or dominant entity.”
The move is part of Ellison’s big lobbying push to rally support for his $108.4 billion hostile bid for Warner Bros. Discovery, which reached an $83 billion deal with Netflix in December. Last month, Ellison traveled across Europe, to meet political leaders and entertainment figures, predicting that regulatory authorities in the U.S. and the EU will block Netflix from acquiring Warner Bros.
Should his hostile bid succeed, Ellison committed that Paramount Skydance and Warner Bros. Studios would each produce a minimum of 15 high-quality feature films per year. Paramount has already increased its output from eight to 15 films since closing the Paramount Skydance transaction in August.
Additional commitments include maintaining HBO as an independent operation, ensuring every film receives a full theatrical release with a minimum 45-day global window before paid video-on-demand availability, and preserving the home video window following theatrical runs. Ellison indicated the studio would aim for 60-90 days or more for the most successful releases.
Both studios will continue licensing their films and shows across their own and third-party platforms, while acquiring content from third-party studios and independent producers, according to the letter.
Positioning his offer in contrast to Netflix’s market approach, Ellison stated the proposed combination is “intended to strengthen competition by creating a more capable and effective rival to the dominant platforms.”
The letter comes as Netflix co-CEO Ted Sarandos was in the hot seat at a Senate hearing that ran over two hours on Tuesday. Sarandos was asked pointed questions by lawmakers about the threat that the streamer’s pact with Warner Bros. Discovery poses to competition, jobs and streaming prices.
Netflix announced its megadeal with Warner Bros. Discovery on Dec. 5, which was about 84% cash and the rest in stock, valuing the banner at $27.75/share. Then two weeks ago, Netflix switched to an all-cash offer.
Paramount Skydance’s bid is backed by David Ellison’s father, Oracle co-founder and multibillionaire Larry Ellison, along with partners including RedBird Capital Partners and the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi.
