The dynamics in Hollywood are currently dominated by a significant confrontation between two prominent figures: David Zaslav and David Ellison. Zaslav, the CEO of Warner Bros. Discovery (WBD), is contemplating a sale of the company, while Ellison, the newly appointed CEO of Paramount Skydance, has initiated a hostile takeover attempt against WBD.
The Corporate Showdown
Zaslav and Ellison’s rivalry has escalated over recent months, marked by bold moves and strategic proposals. Ellison made headlines with his initial offer of $19 per share for WBD, which was swiftly rejected by Zaslav. The stock had been trading around $12 prior to the offer.
On September 30, Ellison returned with an enhanced offer of $22 per share, even proposing that Zaslav serve as co-CEO and co-chairman of a merged entity. Despite these efforts, Zaslav was resolute in his intent to maintain WBD’s strategic direction, which includes a split of the company into two distinct parts: Discovery Global and Warner Bros.
Market Pressure Builds
- Zaslav’s rejection of the initial offer led analysts to speculate that Paramount would increase its bid.
- By early October, Paramount’s board recognized WBD was not responding swiftly to suitors, leading to an accumulation of interest from Netflix and Comcast.
- Throughout October, further proposals from Paramount continued to emerge, showcasing a persistent effort to acquire WBD.
The Bid Escalation
The tension culminated when Paramount raised its proposal to $25.50 per share. Ellison’s strategy involved building on the relationship dynamics with Zaslav, as well as leveraging familial ties. Larry Ellison, David’s father, is the largest shareholder of Paramount, enhancing their position amid negotiations.
Discussions between Zaslav and Ellison have occurred, although the nature of their interaction has varied. Notably, at an event on October 31, the two men were present but did not engage directly. In stark contrast, Netflix co-CEO Ted Sarandos was acknowledged for his collaborative spirit.
Paramount’s Final Moves
- On December 3, Paramount presented its final bid of $30 per share, contending that WBD had compromised fair transaction processes favoring Netflix.
- Ellison expressed his continued respect for Zaslav, despite public disagreements.
- Despite the escalated bid, Netflix eventually secured a deal with WBD at $27.75 per share.
In a dramatic turn, the ongoing battle of the Davids continues to draw attention, with Ellison articulating alleged biases in WBD’s dealings, which he believes favored Netflix. This complex narrative emphasizes the intertwining of corporate strategy, personal ambition, and the ever-evolving landscape of Hollywood’s business dealings.
