It’s been less than five years since Warner Bros. Discovery CEO David Zaslav discussed what appears to be the case of his career. Now, as Netflix plans a landscape-changing takeover of Warner Bros., it’s in the middle of an even bigger one.
Zaslav, or Zaz, is a hard-charging, well-connected executive who cut his teeth inside NBC, and moved into New York’s media elite as he transformed Discovery Inc. from a nature- and science-based cable broadcaster into a reality TV giant.
But he pushed himself to moguldom in 2021, crafting a mega-merger between Discovery, which hit shows like 90 Day Fiancé and Naked and Horror, with WarnerMedia, home of HBO, the premier cable channel. CNN News Network; And Warner Bros., the legendary movie studio behind hits from Harry Potter and the Dark Knight to Casablanca and The Exorcist.
Zaz claimed that such respected pillars of media are “both better and more valuable”. “To combine such historic brands, world-class journalism and iconic franchises under one roof and unlock such value and opportunity is extremely exciting.”
“We each win,” he declared. Investors on Wall Street, and beyond; And fans and viewers around the world.
It’s 55 months after the tie-up was announced, and 44 months after it was sealed, and some feel like they’ve won.
Operators in Hollywood, promising “more resources and compelling channels for bigger audiences,” have endured a constant struggle to revive cost-cutting and box-office profits.
Warner Bros. Discovery’s shareholders have promised a “globally scaled growth company committed to a strong balance sheet,” after its stock has suffered a sharp market decline and its executives have struggled to strengthen its balance sheet.
And fans and viewers, promised a “more diverse selection,” capturing a streaming platform that couldn’t even decide on a name. While Barbie has emerged from a decidedly mixed bag of Warner Bros. cinematic releases since the merger, it was years in the works before being discovered.
It’s hard to believe that everyone has won, or that so much value and opportunity has been unlocked, even though one person has fared relatively well. As president and CEO of Warner Bros. Discovery, Zaslav maintained his status as one of the best-paid bosses in corporate America. Last year alone, his total pay package was worth £51.9m.
Warner Bros., founded more than a century ago, has been hit with more than its fair share of Wall Street deals. Over the years, Matchmakers has paired the venerable giant with magazine publisher, Time Inc. AOL, the early dotcom colossus; And AT&T, the telecom giant.
After the newsletter is advertised
Discovery is just the latest episode in this underperforming franchise. Now Netflix is picking up the baton, with a £82.7bn (£62bn) deal to take assets including from Warner Bros and HBO Discovery.
A press release by the two companies included a familiar promise: the proposed combination would create “more choice, more opportunity, more value” for Hollywood, investors and viewers, it said.
Before two troubled takeovers by Warner Bros., Netflix was an upscale streaming service that was licensing old movies and TV series for people to watch on their computers. While the tech firm’s remarkable success has raised serious questions about the future of entertainment, those in charge at Warner Bros. were extremely dismissive.
“It’s a bit like, is the Albanian army going to take over the world?” Jeff Bewkes, then CEO of Time Warner, told the New York Timess In 2010 “I don’t think so.”
The world has now shaken hands with the Albanian army, and agreed to the occupation. Today it looks very different. But some things never change.
Another deal for Warner Bros. Will this end the job?
