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Paramount–Skydance CEO David Ellison has effectively boosted WBD chief David Zaslav’s wealth, despite walking away empty-handed as WBD moves forward with selling its studio and streaming divisions to Netflix.
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Paramount is now weighing a plan to take its offer directly to shareholders, convinced its proposal stands a stronger chance of passing U.S. regulatory reviews, sources told CNBC.
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Paramount was the only party bidding for all of WBD’s operations — including the film studio, streaming platform and TV networks — while Netflix and Comcast were only interested in acquiring Warner Bros. and HBO Max.
This isn’t how David Ellison expected things to unfold back in September.
Just months ago, the Paramount–Skydance CEO wrote to the Warner Bros. Discovery board arguing that a merger between the two entertainment giants was strategically sound. That first letter kicked off a series of bids — each higher than the last — outlining why the companies belonged together.
Ellison’s interest triggered a full-blown sale process, drawing in Comcast and Netflix. The bidding frenzy ultimately doubled Warner Bros. Discovery’s stock value and ended, at least for now, with Paramount losing the very battle it set in motion.
On Friday, Netflix announced it would acquire HBO Max and the iconic Warner Bros. film studio for $27.75 per share — valuing the assets at about $72 billion. Ahead of the closing, WBD plans to spin off its pay-TV networks, including CNN and TNT Sports.
Instead of turbocharging Paramount just months after gaining control through its merger with Skydance, Ellison ended up delivering one of Hollywood’s defining assets to its most powerful rival. The move strengthens Netflix’s position and removes an obvious acquisition target for Paramount and Comcast’s NBCUniversal.
“It wasn’t for sale before, and they certainly hadn’t cleaned up the assets or separated them the way they have now,” Netflix co-CEO Ted Sarandos said Friday. “That’s part of the ‘why now.’”
Ellison’s push has turned into a massive payday for Warner Bros. Discovery CEO David Zaslav, his leadership team, and shareholders.
Zaslav’s Windfall
Zaslav owns more than 4.2 million WBD shares and holds rights to another 6.2 million through previously granted awards, according to Equilar. He also holds nearly 20.9 million stock options with a $10.16 strike price.
At Netflix’s purchase price of $27.75 per share, those holdings total more than $554 million.
Including another 4 million shares Zaslav is scheduled to receive in January, the total approaches $660 million, according to a person familiar with the matter.
Shareholders have also benefited immensely. WBD stock closed at $12.54 on Sept. 10, the day before reports surfaced that Paramount was preparing a bid. On Friday, shares traded above $25 — more than double the pre-sale-process price and back to early 2022 levels when WarnerMedia and Discovery merged.
For Zaslav, under pressure for years over WBD’s performance, Friday’s announcement marked a major vindication — a dramatic turnaround after nearly four years of criticism.
And despite losing this round, Paramount may not be finished.
Paramount’s Next Move: A Hostile Play
Since completing its merger in August, Paramount–Skydance has moved aggressively, hiring new C-suite leaders, recruiting major talent like the Duffer Brothers, securing film rights for Activision’s Call of Duty, and landing a $7.7 billion deal for UFC rights.
But Ellison’s chase for WBD has been his boldest effort yet.
This week, Paramount’s lawyers accused WBD of engineering a sale that favored Netflix, saying its $30-per-share, all-cash offer wasn’t given proper consideration. Netflix’s initial bid for the studio and streaming assets was $27 per share — enough to shift momentum toward Netflix, according to a person familiar with the talks.
Paramount was the only bidder seeking the entire company — the studio, HBO Max, and the TV networks. It continues to argue that its offer is superior.
Paramount estimated the Discovery Global networks are worth about $2 per share based on projected trading multiples and leverage. WBD believes they could fetch $3 per share or more in the public markets.
Paramount has also argued that buying the whole company offers tax advantages to shareholders and carries less regulatory risk. The Trump administration has signaled “heavy skepticism” toward the Netflix–WBD combination, CNBC reported.
To address regulatory concerns, Paramount offered a $5 billion breakup fee if the deal was blocked. Netflix countered with a $5.8 billion fee, according to SEC filings.
Now Paramount is debating whether to take one final, improved offer directly to WBD shareholders — likely above its recent $30-per-share bid.
If it does, Netflix will have an opportunity to match. Either way, WBD shareholders — and David Zaslav — stand to make even more.
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