WBD CEO’s Memo to Employees Following Paramount Rejection
Warner Bros. Discovery (WBD) has officially rejected David Ellison’s latest acquisition proposal, marking the eighth dismissal of its kind. Following this decision, WBD’s CEO, David Zaslav, communicated the rationale to employees via a companywide memo.
Reasons for Rejection of Paramount’s Offer
Zaslav outlined the board’s comprehensive evaluation of Paramount’s offer, emphasizing that they found Netflix’s proposal to be more advantageous. The following key points were highlighted:
- Insufficient Value: The board deemed Paramount’s offer did not compare favorably against Netflix’s bid, particularly when factoring in additional costs, such as a break-up fee.
- Lack of Certainty: Paramount’s ability to finalize the deal raised concerns due to significant debt financing issues.
Financial Backing and Offer Details
Paramount’s latest proposal included an impressive $40.4 billion in equity, largely backed by Larry Ellison, a prominent figure in the financial world and father of Paramount’s CEO, David Ellison.
Focus on Company Goals
Zaslav reassured staff that WBD’s operational strategies remain intact and that the priorities for 2026 are clearly defined. He urged employees to maintain their concentration as the company moves forward into the new year. The official launch of the 2026 goals process is scheduled for February.
Encouragement from Management
In his memo, Zaslav expressed gratitude for the dedication and professionalism exhibited by the WBD team. He emphasized the importance of focusing on the company’s objectives and the ongoing projects across its various divisions, including film, television, sports, streaming, and games.
As the regulatory review process for the existing agreement with Netflix continues, WBD remains committed to its current strategies and the momentum they have built. The CEO concluded his message by reinforcing confidence in the company’s direction and the engagement of its workforce.
