The Battle for Warner Bros: A Hollywood Power Play with No Clear Role for Zaslav
The entertainment industry is abuzz with the latest developments in the potential acquisition of Warner Bros. Discovery (WBD). But here's where it gets controversial: David Ellison, backed by Paramount and his billionaire father Larry Ellison, is positioning himself as the frontrunner to buy WBD, but there’s no clear role for current CEO David Zaslav in this new mega-studio. And this is the part most people miss: the Ellisons are keen to avoid the messy, prolonged saga that marked Skydance’s $8 billion acquisition of Paramount, and they’re not interested in inheriting Zaslav’s leadership style or WBD’s debt-heavy baggage.
With Warner Bros Motion Picture chairs Michael De Luca and Pam Abdy securing new contracts, WBD’s crown jewels are locked in, making the studio an even more attractive target for Ellison. Think of it like buying a house and discovering a priceless Warhol painting in the backyard—De Luca and Abdy are that valuable. But Zaslav? His future in this deal is far from certain. Studio insiders suggest he’s unlikely to stick around post-sale, and the Ellisons, particularly tech titan Larry, prefer a clean slate with no surprises. At best, Zaslav might be offered a board seat or a ceremonial ‘strategic advisor’ role, but even that’s not guaranteed.
Here’s where it gets even more intriguing: While no formal offer has been made, sources confirm that Ellison, advised by Jeff Shell and Gerry Cardinale, is merely biding his time. The question is, how far along are the informal discussions? And more importantly, will Zaslav’s attempts to drum up other bidders—like Netflix—pay off? Analysts like Richard Greenfield of Lightshed Partners doubt Netflix is seriously in the running. Greenfield argues that Netflix, focused on original IP and uninterested in linear cable networks, wouldn’t spend $75-$100 billion on WBD, especially with its complex web of distribution deals with Amazon Prime, Charter, and DirecTV. ‘Why would Netflix want to deal with all those entanglements?’ he asks.
The Ellisons, however, see an opportunity. With WBD splitting its linear networks from its film and TV production, snapping up the entire company now—in cash—could prevent a costly bidding war later. But the pool of potential suitors is limited. Comcast would face regulatory hurdles, Sony might need a private equity partner, and tech giants like Apple or Amazon seem unlikely bidders. Plus, Larry Ellison’s status as one of the world’s richest individuals could deter competitors.
And this is the part that sparks debate: TD Cowen’s Doug Creutz suggests the Ellison bid is as much about politics as business. With Larry Ellison poised to become an overlord of TikTok and the ongoing AI investment frenzy, there’s a bigger game at play. ‘Standard analytical frameworks are probably less useful than normal,’ Creutz notes. The probability of an Ellison bid is high, as is the likelihood of it being accepted and approved by regulators. But the risk lies in WBD’s inflated stock price, which has nearly doubled on speculation. If the bid falls through, shares could plummet back to $11-$12.
As David Ellison takes the stage at a Bloomberg conference in Hollywood this Thursday, just before De Luca and Abdy, one can’t help but wonder if a sidebar conversation is in the works. But here’s the burning question: Is Zaslav’s era at WBD coming to an end, or will he find a way to remain relevant in this Hollywood power play? What do you think? Let us know in the comments—this is one deal where every opinion counts.
