David Zaslav Pushes for Bidding War in Paramount Merger Talks

The Ambitious Expansion of Paramount Skydance

The merger between Paramount and Skydance, valued at $8.4 billion, has sparked a wave of speculation about the future of the entertainment industry. This deal, led by one of the wealthiest families in the world, is not just about consolidating power—it's about acquiring more. According to recent reports, Paramount Skydance is now eyeing Warner Bros. Discovery as the next big target.

Initially, there were rumors that Paramount was only interested in acquiring parts of Warner Bros. after its split this spring. However, sources close to the company suggest that the true goal is to take over the entire entity. “Larry Ellison, chairman and co-founder of Oracle, and father of Skydance Media’s David Ellison, has been looking at Warner Bros. for a while,” a source with knowledge of Paramount’s inner workings said. “Nothing new there, he’s just taking a closer look, assessing the pros and cons.”

One of the potential advantages of this move is the recent surge in Warner Bros. Discovery (WBD) stock prices. The Wall Street Journal noted that the rising value of WBD shares could make the acquisition more attractive. However, the path to a deal may not be straightforward.

Navigating Regulatory Hurdles

A potential deal between Paramount Skydance and Warner Bros. Discovery could bypass some of the regulatory hurdles posed by the Federal Communications Commission (FCC) and the Department of Justice. The Trump administration was known for being more lenient with mergers, and the president has maintained good relations with both the Ellison family and David Zaslav, the CEO of Warner Bros. Discovery.

Despite these favorable conditions, insiders warn that the situation is more complex than it appears. If Skydance believes they have a strong offer, they might be underestimating the challenges ahead. Zaslav, known for his strategic thinking, is reportedly preparing for a bidding war.

A Bidding War on the Horizon

According to The New York Post, Zaslav met with his bankers at Goldman Sachs to gauge interest from other media and tech companies, including Amazon, Apple, and Netflix. The goal, as reported, is to drive up the stock price of WBD to $40 per share. Currently, the stock closed just above $16, with a market value of $40 billion. If Zaslav can’t achieve his desired price, he plans to use the appreciation of his stock to invest in more content.

“[David] Ellison better come up with a really good offer and it better be cash,” said a person involved in Zaslav’s dealings who spoke to The New York Post. “It’s (Zaslav’s) feeling that Ellison is trying to get ahead of the bidding war that is coming.”

The Challenge of Selling Assets

While Zaslav is considering selling assets, it’s unclear whether he will sell them individually or as a single package. One media mogul, Jay Penske, owner of Variety, Hollywood Reporter, and Rolling Stone, made an offer for CNN, but Zaslav reportedly rejected it, believing it was too low. Industry insiders suggest that Zaslav is more likely to sell everything as one big package rather than piecemeal.

The Value of Intellectual Property

Deadline reported that Paramount Skydance is particularly interested in Warner Bros.’ intellectual property (IP). The control of a vast IP portfolio could significantly shift the balance of power in the entertainment industry. From Harry Potter and HBO to DC Comics, Taylor Sheridan, Tom Cruise movies, and the NFL, the potential benefits are immense.

Streaming Services and Independence

Another concern is whether Paramount+ and HBO Max would be able to coexist if the companies don’t merge or bundle their services. Insiders believe that executives from both platforms would prefer to maintain their independence and continue operating separately.

Zaslav’s Legacy and Decision

There is also the question of whether Zaslav is willing to step down from his position as the leader of Warner Bros. A media veteran told Deadline, “The bigger question is really, is David Zaslav willing to give up his mantle? He’s going to go with Warner. He sees [what it does] for his reputation in Hollywood.”

As the situation unfolds, the entertainment industry is watching closely. The potential merger between Paramount Skydance and Warner Bros. Discovery could reshape the landscape of media and entertainment in ways that are yet to be fully understood.