Paramount’s pursuit of Warner Bros. Discovery is entering a more confrontational phase.
According to reporting by Charles Gasparino of the New York Post, frustration inside the Paramount Skydance camp is boiling over after multiple attempts to sweeten its hostile offer were rebuffed by Warner’s board.
People close to the situation told Gasparino there’s a growing belief that no version of Paramount’s proposal will be seriously entertained, regardless of how much it improves.
Inside Paramount, executives are privately venting about what they see as constantly shifting standards. One person involved joked that the subsequent rejection might hinge on a trivial matter, underscoring a broader sense that Warner Bros. Discovery leadership has already made up its mind.
That frustration has reportedly turned personal, with mounting anger directed at WBD CEO David Zaslav and the board for how the sale process has unfolded.
The tension dates back to last fall, when Paramount initially sought to acquire Warner Bros. Discovery at a much lower price. That effort collapsed once Warner opened the door to other bidders, triggering a fast-moving auction that dramatically raised the company’s valuation.
Despite that setback, Paramount Skydance—led by CEO David Ellison and backed by RedBird Capital’s Gerry Cardinale—did not walk away. Instead, it launched a hostile bid, taking its offer directly to shareholders and repeatedly adjusting its terms.
Warner’s board rejected that bid multiple times, characterizing Paramount’s financing as “illusory” and accusing the company of misleading shareholders. In response, Paramount escalated again, with Larry Ellison personally guaranteeing more than $40 billion in equity backing and agreeing to greater transparency around his family trust.
Paramount also matched Netflix’s $5.8 billion breakup fee to remove another obstacle.
Still, Warner remained unmoved, reaffirming its support for Netflix’s $72 billion agreement for Warner’s studios and HBO Max streaming business. Under that deal, Warner plans to split into two companies, with shareholders retaining stakes in the spun-off cable networks while receiving cash and stock tied to Netflix’s acquisition.
Gasparino reports that Paramount executives now believe the process was tilted toward Netflix from the start. Some inside the company are openly discussing a potential legal strategy—internally referred to as “DEFCON 1”—that could challenge how the bidding process was handled.
At the same time, Paramount hasn’t ruled out increasing its offer again. According to Gasparino, Warner leadership has continued to signal openness to a higher price, with figures circulating well above the current $30-per-share level. Paramount insiders, however, remain skeptical that such numbers would ever be met.
For now, Netflix remains Warner Bros. Discovery’s chosen partner, and the board continues to recommend that shareholders reject Paramount’s advances.