WBD CEO Discusses Paramount Deal With Staff After Netflix
David Zaslav, CEO of Warner Bros. Discovery (WBD), recently held a town hall meeting with staff discussing the company’s impending deal with Paramount Skydance. This comes after WBD previously favored a deal with Netflix, which is now off the table.
Details of the Paramount Deal
Zaslav expressed enthusiasm about the partnership, stating that joining forces with Paramount could enhance WBD’s position in the industry. He emphasized the company’s need to grow larger and more global to compete effectively. “It’s not easy, but we’re getting bigger, and we’re getting stronger,” Zaslav communicated during the meeting.
Paramount had previously made a competitive offer during WBD’s negotiations with Netflix, proposing $30 per share compared to Netflix’s $27.75 proposal. This bid was for WBD’s complete array of assets, which include its cable networks and streaming platforms.
Rationale Behind the Switch
The decision to pivot to Paramount’s offer was described as quick and somewhat unexpected by Zaslav. “It feels a little whiplash-y,” he remarked, indicating the speed of the negotiations. Bruce Campbell, WBD’s Chief Revenue and Strategy Officer, noted that Paramount’s diligence and determination played a significant role in the deal’s advancement.
Financial Implications and Market Position
- WBD’s revenue stood at $37.3 billion.
- Paramount’s bid included a “ticking fee” of 25 cents per share, totalling roughly $650 million for each quarter until the deal closes.
- WBD has approximately 131.6 million subscribers on HBO Max and Discovery+.
- Paramount+ reported 78.9 million subscribers at the end of 2025.
Zaslav pointed out the competitive landscape, noting that larger companies like YouTube parent Alphabet, which had revenue of $402 billion, pose significant challenges for WBD. A merger with Paramount would not only combine subscriber bases but also leverage WBD’s cable assets, including CNN and TNT, alongside Paramount’s offerings like CBS and MTV.
Regulatory Approval Required
Despite the excitement, the deal will require regulatory approval in both the U.S. and international markets. Zaslav mentioned this process might take between six to eighteen months. If the deal fails to close, WBD would receive a $7 billion breakup fee from Paramount.
Employee Concerns
There have been concerns regarding potential job losses arising from the merger, particularly with the estimated $6 billion in cost savings Paramount plans to implement. Netflix had indicated it would achieve similar savings of $2 billion to $3 billion with its prior offer.
While Zaslav did not address specific job cuts during the town hall, employee sentiment remains cautious as implications of consolidation loom. WBD staffers will continue to watch developments closely as the landscape evolves.
