Introduction
David Ellison, now CEO of Paramount Skydance, seems to be gearing up for something big: reports suggest he’s using a high-powered attorney and legal strategy as tools to nudge Warner Bros. Discovery’s David Zaslav toward a sale. With Paramount Skydance reportedly preparing a majority-cash bid for WBD, Ellison’s moves are drawing attention—not just because of the deal itself, but the strategy, optics, and potential regulatory battles behind it.
Let’s unpack what’s known, what’s speculative, and what all this might mean for the media landscape.
Key Highlights
- Paramount Skydance, backed by Larry Ellison, is reportedly preparing a takeover bid for Warner Bros. Discovery.
- Shares of WBD surged nearly 30-33% after the reports.
- Regulatory risk looms large: antitrust concerns, competition concerns, concerns about combining streaming, cable, studios, news networks.
- Paramount is reportedly bolstering its legal team, possibly to handle the heavy regulatory and negotiation challenges. There are reports that Makan Delrahim (former DOJ antitrust head) is being considered for a legal role.
Deep Insights: What Ellison’s Strategy Looks Like
Legal Muscle as a Negotiation Lever
Bringing in a former senior antitrust official like Makan Delrahim sends a strong signal. It suggests that Paramount isn’t just preparing a financial bid—it’s preparing for legal pushback. Regulatory bodies like the Federal Trade Commission (FTC) and Department of Justice (DOJ) will almost certainly scrutinize any deal of this scale in media. By having someone who has worked in antitrust enforcement, Ellison can anticipate objections, plan for concessions, and possibly reduce friction before it becomes a showstopper.
Timing vs WBD’s Internal Moves
Warner Bros. Discovery is in the midst of restructuring — splitting into two separate businesses: one focused on streaming and studios, the other on traditional linear TV networks. This planned split (due mid-2026) may make certain assets more or less attractive, depending on how cleanly the split is executed. Ellison’s potential bid seems to come before or during this transition, possibly trying to lock in value from both sides of WBD’s empire.
The Cash + Stock Offer Speculation
Reports suggest the bid could be “majority cash” (70-80% cash) with a portion in stock. This format both gives immediate value to shareholders (cash) and stakes in the new combined company (stock). It may be more enticing, especially to investors tired of stagnant stock performance.
Regulatory Headwinds & Financing Challenges
Any acquisition of WBD faces significant antitrust scrutiny—not just from the DOJ, but possibly from global regulators. The bigger the combined content, studio, news, and cable portfolio, the more questions about market concentration arise. Financing is also non-trivial: Skydance’s purchase of Paramount was backed by Ellison family money + partners, but buying WBD is a much larger endeavor. Debt load, asset valuation, negotiating with WBD’s board all add complexity.
What Zaslav’s Position Looks Like
David Zaslav, CEO of Warner Bros. Discovery, has options. He could resist any sale and press forward with the planned split. That allows him to spin off linear networks (some of the lower-growth, higher cost assets) and sharpen up the streaming & studios business into a cleaner, more focused entity.
He may also be holding out for a higher offer or looking to create a bidding war. Reports suggest that shares of WBD only significantly jumped after news of the possible bid emerged, indicating strong market interest and potential leverage.
What’s Probably True / What’s Speculative
| What Seems Likely | What Is Still Speculative |
|---|---|
| Paramount Skydance is preparing a bid for all or most of WBD backed by Ellison family funds. | Whether Ellison’s attorney (i.e. legal strategy) is actively trying to “lure” Zaslav personally to sell. No solid source confirms that specific wording. |
| Risk of antitrust/regulation being a major obstacle is real. | The exact price, structure of the bid, and whether Zaslav will accept anything but his preferred terms (especially around cash, control). |
| The market is reacting (stocks spiking) in anticipation. | That the deal will definitely happen — there’s no formal bid submitted yet. |
Market Impact & Implications
- Shareholder Premium: If the bid is accepted, WBD shareholders could realize a premium over current valuation. But if it’s rejected, speculation alone has already boosted prices.
- Media Landscape Consolidation: Combining Paramount Skydance and WBD would consolidate streaming, studios, cable networks, and news under one roof — creating an even larger competitor to Netflix, Disney, and the tech-media giants.
- Regulatory Signals: How the DOJ and FTC respond could set precedent for future media consolidation. Hiring Delrahim hints Paramount anticipates serious regulatory battles.
- Competitive Moves: Other potential suitors (streaming platforms, tech companies) may respond — either with counteroffers or by positioning themselves differently to stay competitive.
- Strategic Risk for WBD: If Zaslav resists or negotiates hard, he could alienate shareholders who see “value leaving on the table” if the offer is rejected without a better one coming.
Expert Views
“What Ellison is doing isn’t just about purchasing content brands. It’s about securing scale, control, and negotiating leverage in an industry where content, streaming, and IP are everything,” says a media-industry analyst at MoffettNathanson.
Antitrust experts suggest that bringing in someone with DOJ background isn’t just PR — it’s a serious part of planning for how to structure the deal in a defensible manner. Analysts also warn that bidding too high or overleveraging could backfire.
FAQs
Q: Has Ellison officially made a bid?
Not yet. Reports say Paramount Skydance is preparing a bid, but no formal proposal has been submitted.
Q: What would Zaslav’s resistance look like?
Likely demanding higher cash components, control, preserving certain divisions (studios vs. cable), or waiting for more suitors to enter the fray. Also possibly pushing the planned split of WBD to maximize value before any sale.
Q: Why is legal strategy so important here?
Merging two media giants involves complex antitrust, competition, and regulatory issues — especially when they share assets in streaming, cable, and news. Having former government antitrust leadership in your corner helps in anticipating, defending, and negotiating through those issues.
Q: What’s the estimated valuation in reports?
Some sources suggest $22-$24 per share for a possible offer. Others point to values in the tens of billions (WBD market cap around $30–40B depending on assets, net debt, etc.). But these are speculative.
Q: Could this deal be blocked?
Yes. Antitrust regulators, competitors, shareholders, and political actors could all challenge a deal — especially one that consolidates so many media assets.
Final Thoughts
David Ellison’s push to acquire Warner Bros. Discovery appears to be more than a headline — it’s a full strategy: financial, legal, and symbolic. Using a seasoned antitrust legal team is part of that strategy, not just window dressing.
But whether his plan “lures” Zaslav into selling on Ellison’s terms will depend on numbers (cash vs. stock), structure (asset splits, studios vs cable), and how regulatory and shareholder pressures shape up.
In this media war, leverage isn’t just about content — it’s about timing, law, optics, and convincing others to believe there’s no better path forward. And Ellison is stacking the deck on all of those fronts.
