Read the memo: David Ellison addresses staff as Paramount Skydance and Warner Bros. make it official

Paramount Skydance and Warner Bros. Discovery have made it official, and CEO David Ellison sent a memo out to staff about the merger.

Paramount said in an official announcement on Friday that it had entered into a definitive merger agreement with Warner Bros. Discovery, giving the David Ellison-run media firm valuable assets such as HBO, CNN, and DC Studios.

Netflix, which was also vying for WBD, declined to raise its bid for the company on Thursday, effectively walking away from its offer to acquire Warner Bros. Discovery’s streaming and studio assets.

Paramount made multiple offers for all of Warner Bros. Discovery, including its film studio, HBO, and cable networks such as CNN, rather than the slimmer asset package Netflix had pursued. WBD accepted its revised $31-per-share offer that Netflix declined to counter.

Politics may have played a role in the bidding war. President Donald Trump publicly expressed disapproval of Netflix’s bid, and Republican lawmakers sharply criticized the company at a recent congressional hearing, accusing it of promoting “woke” programming. Trump had also demanded that Netflix fire a board member.

Investor sentiment compounded those headwinds. Netflix shareholders had been signaling discomfort with the scale and risk of the acquisition for weeks, dragging down the stock. Shares rebounded sharply once it became clear that Paramount’s bid was gaining momentum.

Read the memo Ellison sent:

Team,

Today we announced that Paramount has entered into a definitive agreement to acquire Warner Bros. Discovery. You can read the full details in our press release here.

I want to begin by thanking each of you for your patience, resilience, and commitment throughout this process. It has not been easy. Shortly after launching the new Paramount in August, we announced our plans to pursue this transaction. The months since have required a lot of hard work and resolve as together we have navigated the complexities and uncertainties that come with a deal of this scale.

That perseverance has brought us to this exciting moment.

By uniting two iconic studios, complementary streaming platforms, established cable and linear networks, expanding international businesses, world-class intellectual property, and the extraordinary talent behind all of this, we have a rare opportunity to help shape the future of our industry. Together, we can build a more dynamic, more competitive and more creatively ambitious company — one that better serves storytellers, entertains audiences around the world, and delivers long-term value for shareholders.

From day one, our vision has been clear: to build the next-generation global media and entertainment company. Acquiring WBD meaningfully accelerates that ambition. It expands our reach and enhances our ability to create the world’s most compelling stories and experiences.

While we have signed a definitive agreement, the transaction remains subject to customary closing conditions, including regulatory approvals and WBD shareholder approval, with a vote expected in the early spring of 2026. Until closing, Paramount and WBD will continue to operate as separate companies.

I know you will have questions about what this means for our company and for you and your teams. And as I said on Day 1, you have my commitment that we will be as direct as possible and share important updates as they become available.

Thank you again for your patience throughout this process and for your continued dedication. I am confident that, together, we will seize this incredible opportunity and build something truly extraordinary.

Let’s go!

David