Paramount circling Warner Bros. Discovery after rebuffed approach

David Ellison’s company could take plan to create a sprawling media conglomerate directly to shareholders

- Joe Flint & Lauren Thomas

David Ellison, the chief executive of Paramount, is making a play for all of Warner before it splits.

(BLOOMBERG)

A battle for the future of Warner Bros. Discovery is brewing.

Warner Chief Executive David Zaslav four months ago unveiled a plan to split the media giant into two, with its TV and movies studio and streaming business in one publicly traded company and its cable networks in another.

Now David Ellison, the son of billionaire Larry Ellison and chief executive of Paramount, is making a play for all of Warner before it splits.

Paramount in late September approached the company about a potential majority-cash offer heavily backed by the Ellisons, according to people familiar with the matter. Warner's board is aware of the proposal, some of the people said.

Warner's Zaslav has so far resisted overtures from Paramount. Ellison is now considering his options, which could include a more aggressive approach, such as taking an offer directly to shareholders, some of the people said.