The entertainment industry went crazy over Warner Bros. Discovery and the way they explored a potential sale, and Paramount Skydance stepped forward with a huge offer to try to make it happen, one that also included a surprising leadership proposal for David Zaslav himself.
According to multiple reports, Paramount has offered $60 billion to acquire Warner Bros. Discovery, a deal split between 80% cash and 20% stock. The offer came to about $23.50 per share. However, despite the size of that figure, the WBD board of directors rejected the offer on October 21, calling it too low.
However, Paramount does not hold back. David EllisonCEO of Paramount Skydance, he is determined to make the merger happen and is getting creative in his approach.
In a letter obtained by The New York Times via The Wrap, Ellison even proposed that David Zaslav become co-CEO and co-chairman of the new merged entertainment giant.
Ellison wrote, “We are confident that we are the best partner for WBD, with the combination of our two companies creating a large-scale Hollywood champion that benefits shareholders of both our companies, consumers, and the entertainment industry at large.”
The offer was designed to make the deal more attractive to Zaslav and the WBD board of directors. Analysts suggest that both companies are now “playing their part perfectly”, as WBD likely aims to convince Paramount to increase its offer.
Interestingly, Zaslav reportedly sees other potential merger partners as better suited for Warner Bros. Discovery, particularly Amazon and Netflix. However, Netflix seems uninterested in joining the race.
During a call with market analysts, Netflix co-CEO Ted Sarandos made it clear that their focus remains on internal growth:
“Nothing is mandatory for us to achieve the objectives we have set for this business […] When it comes to mergers and acquisitions [Mergers and Acquisitions] opportunities, we look at them – and we look at them all – and we apply the same framework and lens that we look at when we look to invest.
“Is this a great opportunity? Is there added value in the property? […] We are predominantly focused on organic growth, investing aggressively and responsibly in growth and returning cash flow to shareholders.”
In short, Netflix is not interested in buying WBD and is staying in its lane.
Even so, analysts agree that Ellison’s proposal makes strategic sense. The combination of Warner Bros. Discovery and Paramount Skydance would create one of Hollywood’s largest media powerhouses. As MoffettNathanson’s Robert Fishman explained via THR:
“First, as we have recognized previously, a potential offer to Paramount Skydance for the entire company makes a lot of strategic sense as it owns a much stronger slate of intellectual property at Warner Bros. and seeks to expand with the combined HBO Max and Paramount+ platforms.
“Combining the linear network portfolios would also likely produce significant cost synergies, while unlocking strategic benefits from pairing CBS News with CNN and leveraging the long-standing CBS-Turner partnership for the NCAA March Madness Final Four, as well as other overlapping sports rights portfolios.”
If Ellison’s vision comes to life, it could reshape the Hollywood landscape by uniting iconic franchises, streaming services and news divisions under one colossal banner.
For now, Warner Bros. Discovery remains independent, but the writing on the wall suggests change is coming. Whether it’s Paramount, Amazon, or another player stepping forward, it’s clear that WBD’s future will play a major role in defining the next era of the entertainment industry.
by Joey Paur
Source: Geek Tyrant
Lloyd Grunewald is an author at “The Fashion Vibes”. He is a talented writer who focuses on bringing the latest entertainment-related news to his readers. With a deep understanding of the entertainment industry and a passion for writing, Lloyd delivers engaging articles that keep his readers informed and entertained.
