David Ellison's hunt for WBD made David Zaslav richer — and it may not be over

Core Insights - Paramount Skydance CEO David Ellison initially sought to acquire Warner Bros. Discovery (WBD) but ultimately lost in a bidding war to Netflix, which acquired WBD for $27.75 per share, valuing the deal at $72 billion [2][4][5] Group 1: Acquisition Dynamics - Paramount's interest in WBD initiated a formal sale process, attracting competitors like Comcast and Netflix, which led to a significant increase in WBD's share value, doubling from $12.54 to over $25 [3][8] - Netflix's acquisition of WBD includes plans to separate its pay-TV networks before the deal closes, enhancing its market position [4][6] - Paramount's legal team has accused WBD of favoring Netflix in the sale process, claiming that their all-cash offer of $30 per share was not adequately considered [13][16] Group 2: Financial Implications - Warner Bros. Discovery CEO David Zaslav stands to gain over $554 million from the Netflix deal, given his substantial shareholdings and options [7] - The sale process has resulted in significant financial benefits for WBD shareholders, with stock prices reflecting a return to levels seen prior to the merger of WarnerMedia and Discovery [8][9] - Paramount has argued that acquiring the entire company would provide tax efficiencies for shareholders compared to a partial acquisition [16] Group 3: Future Considerations - Paramount is contemplating a new bid for WBD, potentially exceeding its previous offer, which could lead to further financial gains for WBD shareholders [17] - Netflix's bid includes a $5.8 billion break-up fee in case of regulatory issues, while Paramount's offer included a $5 billion break-up fee [16][17]