Paramount’s CEO David Ellison has high hopes of using his attorney to lure Zaslav to sell Warner Bros. Discovery

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Paramount Skydance’s Plan to Acquire Warner Bros. Discovery

Securing the services of Makan Delrahim by Paramount Skydance was just the beginning of a larger strategy. CEO David Ellison is now focused on convincing David Zaslav to sell a significant portion, if not all, of Warner Bros. Discovery.

Since joining last week, Delrahim, the former Justice Department antitrust chief, has been working on a plan to persuade Zaslav to accept a bid from Ellison. The argument being made is that if Zaslav doesn’t sell to Ellison, he might end up in a situation similar to Shari Redstone, who had to sell her media empire Paramount at a lower value.

However, Zaslav is not easily swayed. Warner Bros. Discovery, known as WBD, is a valuable asset with strong performance in various areas, including box office success, profitable streaming services like HBO Max, and effective debt management post the TimeWarner deal.

Goldman Sachs has been approached by potential buyers like Netflix, Amazon, and Apple for parts of the business, indicating significant interest and competitive bids. Zaslav is looking for a bid above what the Ellisons have proposed and is focused on maximizing the value of the streaming and studio division.

Delrahim’s role in the deal is crucial, as he aims to position Paramount Skydance as a top contender alongside Netflix and Amazon for the acquisition of WBD. He believes that regulatory hurdles and other challenges could make it difficult for competitors like Amazon to secure a deal.

Meetings are ongoing at Skydance to finalize the bid for WBD, with potential involvement from major shareholders like John Malone. However, Zaslav, with his experience in deal-making and financial acumen, is not an easy target. He has successfully navigated mergers in the past and understands the value of his company.

As the negotiations continue, the outcome remains uncertain. The Ellisons are strategizing their approach, while Zaslav remains focused on maximizing the value of Warner Bros. Discovery. The potential acquisition could shape the future of the media industry and set the stage for a new era of competition.