Warner Bros. Discovery said its assessment shows that the Netflix offer delivers more favorable economics for existing shareholders and contains fewer contingencies. The company did not release specific financial figures but stated that the streaming giant’s bid provides “clearer value and certainty” compared with the Ellison-backed proposal.
The call for a personal guarantee underscores the board’s concerns about the structure of the Skydance bid. Executives noted that a number of its financing elements depend on market conditions and third-party commitments that, in Warner’s view, could weaken if economic circumstances shift. By requesting Ellison’s direct assurance, the company aims to lower the perceived execution risk.
Skydance, founded by Larry Ellison’s son David Ellison, has expanded from film production into sports and technology investments. Its pursuit of Warner Bros. Discovery would be one of the family’s largest media transactions to date. Supporters of the Skydance offer argue that the studio’s library and intellectual-property portfolio would complement Warner’s content assets, though Warner’s board maintains that the price and terms remain insufficient.
Meanwhile, political rhetoric has entered the conversation. Former President Donald Trump said CNN “should have new owners” while speaking about Warner Bros. Discovery’s ongoing review of strategic alternatives. CNN, which remains a flagship network within Warner’s portfolio, has frequently been a target of the former president’s criticism. Trump did not endorse either bidder but reiterated his view that the news outlet’s editorial direction would benefit from an ownership change.
The board’s recommendation does not end the takeover contest. Both Skydance and Netflix are permitted to revise their proposals, and Warner indicated it will continue evaluating any updated terms. Shareholders have been advised to wait for formal proxy materials before casting votes on the competing offers.
Warner executives emphasized that the company is open to a transaction that maximizes shareholder value, provided that financing is secure and regulatory considerations can be addressed. They added that the demand for Ellison’s personal commitment should not be interpreted as a rejection of engagement but as a safeguard designed to protect investors’ interests.
Industry analysts note that consolidation pressure across the entertainment sector has intensified as traditional studios seek greater scale to compete with streaming platforms. Warner, the owner of HBO, CNN and the Warner Bros. film studio, has been viewed as a prime acquisition target due to its extensive content library and global distribution network. Netflix, whose subscriber growth stabilized in recent quarters, has signaled interest in large-scale content assets to reinforce its programming slate.
Warner’s statement did not outline a specific timeline for a final decision. However, the company confirmed that it is working with financial and legal advisers to scrutinize the structure, financing and regulatory implications of each offer. Public documents related to the takeover process can be found on the U.S. Securities and Exchange Commission website.
With the board’s latest guidance, attention now shifts to whether Skydance will increase its offer, secure additional funding assurances, or provide the personal guarantee requested from Ellison. Netflix’s next move is also under close watch, as any adjustment to its own bid could reshape the competitive landscape.
For now, Warner Bros. Discovery continues to operate under existing leadership while its shareholders weigh the merits of the two proposals. The company reiterated that no definitive agreement has been reached and that it remains committed to a process that places shareholder value and transaction certainty at the forefront.
Crédito da imagem: Alex Wong/Getty Images
