The potential merger between Paramount and Warner Bros. Discovery (WBD) continues to roil the media industry. At the heart of the speculation are David Ellison and his father, one of the world's richest men, Larry Ellison. Like sharks circling debt-laden assets, the Ellisons are reportedly in talks, though a definitive offer has yet to materialize.
The Zaslav Question
A key piece of the intrigue is the fate of WBD CEO David Zaslav. Sources suggest that if a merger does happen, there will be no place for Zaslav in the new combined company.
This scenario reportedly doesn't sit well with the WBD chief, who would seemingly prefer to sell his business to a partner like Netflix. The problem for Zaslav, however, is that the streaming giant is reportedly unwilling to tangle with WBD's outdated, multi-channel ecosystem.
Despite the takeover noise, Zaslav's position recently gained some stability following the contract extensions of Warner Bros. Motion Picture Group Co-Chairs Michael De Luca and Pam Abdy. These are the executives behind the company's box-office hits—from Minecraft to Superman - which have collectively grossed over $4 billion globally for WBD. As Deadline put it, retaining this duo is like Ellison buying a house and finding a Warhol painting inside.
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The Financial Stakes
The high-stakes drama involves more than just personalities. The ultimate question is whether an "offer you can't refuse" will land before WBD's assets are potentially split up. Should the streaming and TV divisions separate, the valuation of the remaining business could sharply increase.
Amid the swirling rumors, WBD's stock has already soared, nearly doubling in value. The speculation alone has created a massive market bubble. One can only imagine the look on David Zaslav's face should the deal ultimately fall apart and this financial bubble burst.
Regardless of the merger's outcome, however, many industry watchers believe the media mogul's Hollywood career is nearing its conclusion.
