Paramount Chairman and CEO David Ellison is not giving up on his relentless pursuit of Warner Bros. Discovery and plans to take on rival suitor Netflix.
In an open letter sent Thursday to journalists around the world, including in the UK and France, Ellison outlined specific commitments to the creative community, pledging that the combined organization will produce at least 30 theatrical productions a year while maintaining a competitive market structure.
In the letter, written in a variety of languages and addressed to “the creative community, film and television fans, and the industry at large,” Ellison emphasized that “audiences are best served by more choice, not less; a market that encourages the full range of film production, content creation, and theatrical exhibition; not one that eliminates meaningful competition by creating monopolistic or dominant entities.”
The move is part of a larger lobbying effort by Mr. Ellison to rally support for his $108.4 billion hostile takeover of Warner Bros. Discovery, which reached an $83 billion deal with Netflix in December. Last month, Ellison traveled across Europe meeting with political leaders and entertainment figures and predicted that U.S. and EU regulators would block Netflix’s acquisition of Warner Bros.
Ellison promised that if the hostile bid was successful, Paramount Skydance and Warner Bros. Studios would each produce a minimum of 15 high-quality feature films per year. Paramount has already increased production from eight to 15 films since completing the Paramount Skydance deal in August.
Additional efforts include maintaining HBO as an independent operation, ensuring all films receive a full theatrical release with a minimum 45-day global window before paid video on demand becomes available, and maintaining a post-theatrical home video window. Ellison said studios will aim for 60 to 90 days or more to achieve their most successful releases.
According to the letter, the studios will continue to license movies and shows across their own and third-party platforms, while acquiring content from third-party studios and independent producers.
Ellison contrasted his proposal with Netflix’s approach to the market, saying the proposed merger is “aimed at increasing competition by creating more capable and effective rivals to dominant platforms.”
The letter was released as Netflix co-CEO Ted Sarandos sat in the spotlight during a Senate hearing that lasted more than two hours on Tuesday. Sarandos faced pointed questions from lawmakers about the threat the streamer’s deal with Warner Bros. Discovery poses to competition, jobs and streaming prices.
Netflix announced a blockbuster deal with Warner Bros. Discovery on Dec. 5 that was about 84% cash and the rest stock, valuing the banner at $27.75 per share. Then, two weeks ago, Netflix switched to an all-cash offer.
Paramount Skydance’s bid is backed by billionaire Larry Ellison, David Ellison’s father and co-founder of Oracle, as well as partners including Redbird Capital Partners and sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi.
