Warner Bros. Discovery CEO David Zaslav has admitted the company’s sudden sale to Paramount felt “whiplash-y” in a leaked town-hall recording.
Speaking to staff on Friday morning, David Zaslav said the speed of the deal left leadership “getting our bearings.” Just days earlier, Warner Bros. Discovery had been moving forward with a sale to Netflix.
Netflix had agreed to buy WBD’s studio and HBO assets for $27.75 per share. But Paramount Skydance came in with a rival $30-per-share offer for the entire company, including its cable networks. That higher bid won over shareholders.
Zaslav told employees he believes combining with Paramount will make the company stronger. “We’re getting bigger, and we’re getting stronger,” he said. He also warned that some rivals have grown so large that they could “just run us over.”
The CEO said the board had a legal duty to review better offers. He described the process as “thorough” but admitted the switch happened very quickly.
The deal is not final. It still needs regulatory approval, which could take six to 12 months. Zaslav said if the merger fails, WBD will receive a $7 billion breakup fee and continue operating independently.
Last week, WBD’s board warned shareholders that Paramount’s plan to cut $6 billion in costs could lead to staff departures. Netflix had planned smaller savings of $2 billion to $3 billion.
For now, Zaslav is backing the Paramount deal. But with regulators still to decide, employees face months of uncertainty.
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