Paramount Skydance (PSKY) CEO David Ellison is pressing ahead with his bid to acquire Warner Bros. Discovery despite multiple rejections, betting that his close ties to President Donald Trump will help him secure the deal.
According to CNN, an Ellison adviser described Trump's implicit backing as the company's "number one talking point" in convincing stakeholders that Paramount is the only bidder capable of closing the acquisition.
Ellison, supported financially and politically by his father, Oracle founder Larry Ellison, has reportedly told advisers he won't exceed $25 per share for WBD, believing Trump's influence could ease regulatory approval. Trump has openly praised both Ellisons as "friends" and "big supporters," strengthening speculation that a Paramount, WBD merger would face fewer antitrust hurdles under his administration.
The bid follows WBD CEO David Zaslav's announcement that the company is exploring a sale or asset spin-off, after receiving interest from multiple parties, including Comcast and Netflix. Zaslav's restructuring plan aims to separate Warner Bros. studios and HBO from Discovery's cable and digital assets, potentially making a sale more attractive.
Ellison's most recent offer of $23.50 per share reportedly triggered renewed takeover discussions across the media industry. Analysts noted that a merger between Paramount and Warner Bros. would mark a "tectonic shift" in entertainment, uniting two major Hollywood studios and combining streaming platforms HBO Max and Paramount+ under one roof.
Sources told the New York Post that Ellison is confident Trump's animosity toward Comcast CEO Brian Roberts, a likely rival bidder, further tilts the odds in his favor. Trump has repeatedly criticized Roberts publicly, which some believe could discourage Comcast from aggressively pursuing WBD.
Paramount has stayed silent publicly, but insiders say the company is emphasizing Ellison's political and financial leverage in private discussions. "That's the Trump card," one adviser told CNN.
WBD's board has so far unanimously rejected Ellison's bids, but the media mogul remains undeterred, buoyed by his recent $8 billion merger with Paramount and his growing influence in both Hollywood and Washington.
Thursday, PSKY closed at $16.47, or 0.60% lower, and currently trades after hours at $16.50, or 0.18% higher on the NasdaqGS.
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