The battle for Warner Bros. is heating up, and it’s not just about who has the deepest pockets—it’s about who has the most credible plan. But here’s where it gets controversial: Netflix Co-CEO Greg Peters has openly dismissed Paramount’s bid as one that ‘doesn’t pass the sniff test,’ sparking a fiery debate in the media and financial worlds. As winter sets in across the U.S., the clash between streaming giant Netflix and media powerhouse Paramount is anything but cold, with both vying for control of Warner Bros. and its lucrative assets.
In a recent interview with The Financial Times, Peters didn’t hold back. He argued that Netflix’s accepted offer is far superior to David Ellison’s repeated attempts to secure Warner Bros. Peters highlighted a critical issue: Paramount Skydance is already burdened with significant debt, making Ellison’s all-cash offer of $30 per share a financial nightmare. And this is the part most people miss: Ellison’s father, Oracle founder Larry Ellison (with a net worth of $231 billion), has stepped in to personally guarantee the bid, raising questions about the sustainability of such a move.
Wall Street and the media are now buzzing with anticipation of an even larger cash offer from Paramount. But Peters isn’t convinced. ‘Without Larry Ellison independently financing this thing, there’s no chance in hell Paramount would ever be able to pull this off,’ he stated bluntly. He further questioned the feasibility of Paramount’s potential higher bid, asking, ‘What kind of leverage would they have to take on? It’s hard to imagine how that works out well.’
Gerry Cardinale, founder of RedBird Capital and Paramount Skydance’s second-largest shareholder, fired back. He dismissed Peters’ concerns about leverage, calling Netflix’s $83 billion all-cash offer for Warner Bros.’ studios, streaming, and linear HBO businesses ‘the Harry Houdini of deals’—implying it’s all smoke and mirrors. In contrast, Paramount’s $108 billion bid includes the entire company, plus Discovery Global Linear Networks and Discovery+.
Peters remains unconvinced. ‘The Paramount bid doesn’t pass the sniff test in my mind,’ he said. ‘And that’s what the Warner Brothers board determined. I think that’s where the Warner shareholders are at too.’ David Ellison’s attempt to sway Warner Bros. Discovery (WBD) shareholders through a personal appeal hasn’t gained much traction. His call for shareholders to tender their holdings ahead of the next investor meeting—a move akin to a hostile takeover—has fallen flat, with only a ‘very small’ number of shares tendered as of January 21 (roughly 168.5 million out of 2.45 billion, according to proxy filings).
Here’s the burning question: Is Paramount’s bid a bold strategic move or a financially risky gamble? And does Netflix’s offer truly stand on firmer ground, or is it overpromising? Let’s hear your thoughts—do you think Paramount’s bid is viable, or is Peters right to call it out? Share your take in the comments below!
