The future of Hollywood may hinge on a high-stakes battle between two Davids: Zaslav, who has agreed to sell Warner Bros. and HBO to Netflix, and Ellison, who opposes the deal and has launched a hostile takeover bid.
Both are now plotting their next moves, while their allies trade barbed corporate commentary in an effort to sway the outcome of what could be a once-in-a-generation studio sale.
The tension is unmistakable. A source close to Zaslav compared Ellison’s recent actions to a “temper tantrum,” while a person aligned with Ellison warned that Zaslav and Netflix “don’t know what’s hit them yet.”
Even so, despite the posturing and bravado, the feud could end as suddenly as it began—if the price is right.
Media analysts predict that Paramount will “sweeten” its bid for Warner in the coming days, ramping up the pressure on Zaslav and Netflix co-CEO Ted Sarandos.
At the center of the drama is 42-year-old Ellison, who seems to be living out a real-life Hollywood script. As the new CEO of Paramount Skydance—a position he secured after merging his smaller production company, Skydance, with the storied Paramount earlier this year—he has been moving swiftly to shape the next chapter of the industry.
Some media veterans who’ve sparred with Ellison this year call him arrogant, while his supporters argue that his confidence is well-earned.
On September 14, Ellison met with 65-year-old Zaslav at his Beverly Hills home and proposed $19 per share for all of Warner Bros. Discovery, which had been trading around $12 before whispers of a Paramount bid emerged.
A week later, Zaslav replied with a letter politely declining, signaling that Warner Bros. Discovery (WBD) would continue with its plan to split into two separately traded entities. Under that plan, CNN and other channels would become part of Discovery Global, while Warner Bros., HBO Max, and other assets would operate under the Warner Bros. name.
Paramount’s next move was widely anticipated. On September 30, Ellison returned with a $22-per-share offer, sweetened by a proposal for Zaslav to serve as co-CEO and co-chair of the board for the combined company.
Part of the move was a play on Zaslav’s ego, with Ellison sensing that the WBD CEO was hesitant to relinquish his media mogul throne.
The age difference between the two men is striking: to Zaslav, Ellison is at an age where he could almost be his son.
Power, Politics, and Pressure
Ellison’s father, Larry, 81, is Paramount’s largest shareholder and has played a hands-on role in the company, using his Oracle fortune to help fund the family’s expansion in the media industry.
Larry Ellison’s close ties to former President Trump have also been seen as a potential advantage in navigating regulatory reviews.
Yet during the secretive bidding process, Paramount’s emphasis on its mutually beneficial relationship with the Trump administration reportedly irritated some participants, according to a source familiar with the talks.
By early October, it became clear to Paramount’s board that WBD was dragging its feet. A timeline released to justify Paramount’s hostile takeover bid showed that WBD repeatedly failed to respond promptly to improved offers.
Over the course of 12 weeks, Paramount submitted a total of six proposals, according to its SEC filing.
As WBD officially put itself up for sale in mid-October, more bankers and lawyers joined the fray, attracting interest from Netflix and Comcast in Warner Bros. and HBO. Paramount, however, remained the only bidder pursuing the entire company, including CNN.
Zaslav, perhaps playing hard-to-get to drive up the valuation, kept his distance—at least from Paramount’s perspective.
When Zaslav received an award at the Simon Wiesenthal Center’s Humanitarian Award Dinner on October 31, Ellison attended as well. But the two men “did not break bread nor gab,” noted Deadline reporter Dominic Patten. Despite being seated just a few tables apart, the two Davids appeared determined to ignore each other.
Meanwhile, Netflix’s Ted Sarandos was in constant conversation with industry players, earning a public shoutout from Zaslav, who called him “one of the good guys.” Ellison, by contrast, went largely unacknowledged. By mid-November, Paramount had increased its bid to $25.50 per share. On November 24, Zaslav met for dinner with both David and Larry Ellison to discuss Paramount’s ambitions for scale in the media market and Zaslav’s potential role in the combined company, according to Paramount.
It’s unclear when Ellison concluded that WBD was favoring Netflix, but tensions escalated last week when WBD requested second-round bids. Paramount raised its offer to $26.50 per share, emphasizing a “best-of-both” approach to combining talent, while its lawyers sent a detailed letter criticizing Netflix and Comcast’s bids.
On December 3, Zaslav called Ellison to share the WBD board’s concerns about Paramount’s offer, noting he was contacting the other bidders as well.
When Things Turned Hostile
The bidding war took a sharper turn on Dec. 3. Paramount’s lawyers sent a letter to WBD claiming the board had “abandoned the semblance and reality of a fair transaction process” by favoring Netflix, while also taking aim at Zaslav directly. Ellison, however, continued to communicate privately, texting Zaslav on Dec. 4: “I heard you on all your concerns and believe we have addressed them in our new proposal.”
Paramount’s final bid was $30 per share, yet WBD accepted Netflix’s $27.75-per-share offer, in part because Netflix excluded Discovery Global assets, which would be valued separately. Sensing a deal was imminent, Ellison texted Zaslav later on Dec. 4, indicating Paramount was still willing to go higher: “Please know despite the noise of the last 24 hours, I have nothing but respect and admiration for you and the company. It would be the honor of a lifetime to be your partner and to be the owner of these iconic assets.” Paramount says Zaslav did not respond. Hours later, Netflix announced its acquisition of WBD’s studio and streaming assets.
Then, the “battle of the Davids” reached its most dramatic stage. Ellison launched a hostile bid and sat for an in-depth CNBC interview as markets opened. He accused WBD of an “inherent bias” against Paramount, noting that his company had been the first to put WBD “in play” with its September bid.
Ellison emphasized, “We literally submitted $30 a share in cash,” aligning with WBD’s expectations. “We never got a phone call back. And that’s why we’re here today.”
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