What I’ve been reporting for years continues to play out in real time.
Deadline now says Paramount Skydance’s David Ellison’s bid to acquire Warner Bros. Discovery is shaping up behind the scenes, while current CEO David Zaslav may be left out entirely.
According to the latest update, Ellison is preparing to make his move on Warner Bros., and with the recent contract renewals of WB Motion Picture Group heads Michael De Luca and Pam Abdy, the studio’s leadership is being locked into place.
In short, Ellison is finalizing the team he wants, and it doesn’t look like it includes Zaslav.
Zaslav’s Exit Seems Likely as Ellison Eyes Clean Slate
Sources tell Deadline that Ellison and his father, Oracle co-founder Larry Ellison, aren’t interested in keeping Zaslav on board. There’s reportedly no significant role for Zaslav in the post-sale version of the studio, though he could be offered a soft landing in the form of a board seat or vague “strategic advisor” title.
Insiders for the site say it’s unlikely Zaslav would want to stick around anyway. The Ellisons want a clean slate with no baggage, and that includes the $30 billion in debt WBD is carrying.
This lines up with what I’ve said all along: Zaslav’s goal has been to sell. From the beginning, he planned to split Warner Bros. Discovery into separate entities, offload the studio side, and hold onto Discovery Global. And now that Netflix may be cooling on a bid, according to Deadline, Ellison sees an opening to move in before a studio bidding war pushes up the price.
De Luca and Abdy Are Key Assets in the Deal
Ellison’s strategy appears to revolve around acquiring not just Warner Bros. IP but also top-tier talent. With De Luca and Abdy re-upped after overseeing a $4 billion global box office run this year, they’re seen as major assets. Deadline likens them to discovering a Warhol in the house you’re about to buy—a bonus the Ellisons likely view as critical to their long-term studio plans.
In fact, De Luca and Abdy are scheduled to appear at a Bloomberg conference Thursday—right after David Ellison. Expect Hollywood’s version of a “sidebar.”
Netflix May Be Out, But Timing Is Everything
Analysts like Rich Greenfield of Lightshed Partners are now expressing doubts that Netflix wants to deal with WBD’s mess. Greenfield doesn’t see Netflix spending $75–$100 billion to buy a company with legacy cable networks, licensing entanglements, and debt.
Netflix is still licensing content from studios and is investing heavily in original IP. The company might wait until after the split in April to pursue pieces like HBO or DC, but that could cost more later if a bidding war breaks out. The Ellisons could secure everything cheaper now by buying the whole thing, including the cable networks, and sorting it out later.
Ellison’s Bid Has Political Momentum
The Ellisons’ political connections may give them an edge. Larry Ellison—recently the world’s wealthiest person—is a known ally of Donald Trump. So that means any regulatory restrictions may be eased.
Paramount has also acquired Bari Weiss’s news publication, The Free Press, and named Weiss the new editor-in-chief of CBS. She’s known for her criticisms of the woke left. Recently, Paramount Global agreed to pay $16 million to Trump in a settlement over an edited 60 Minutes interview.
