Paramount Skydance Claims Victory in Media Deal
In a highly publicized bidding war, Paramount Skydance emerged victorious over Warner Bros. Discovery (WBD). But, who truly came out on top in what some are calling the takeover battle of the century?
The protracted six-month negotiation between media giants culminated in an explosive conclusion late Thursday, though those following the saga closely might not have been shocked by the outcome.
Let’s analyze Netflix and its co-CEO Ted Sarandos. He spent months maneuvering to outsmart WBD, and, until recently, seemed poised to win. In a sense, he’s both a winner and a loser.
Sarandos can claim a victory because, after all the theatrics, Netflix didn’t really need this deal. Just when I suggested on social media that the company might falter, its stock surged more than 10%. Notably, Netflix’s success was built on organic growth, rather than acquisitions like this one. Yet, Sarandos racked up substantial debt and attracted regulatory scrutiny. Now that he’s stepped back from this merger, he can focus on strengthening Netflix again.
However, it’s puzzling why Sarandos thought this was a smart move for shareholders, especially considering he lost $200 billion in market cap during the discussions. Did he genuinely believe Trump’s antitrust opposition was a real concern by combining the top two streamers?
Meanwhile, David Zaslav, the CEO of WBD, emerges as a clear winner. Having known him for quite some time, I recall his struggles during his tenure at NBCUniversal before taking the helm at WBD.
He had a significant opportunity when AT&T spun off WarnerMedia, which led to a merger with Discovery, ultimately positioning Zaslav as CEO. Despite a bumpy beginning filled with debt and pressure to cut costs, he gradually turned things around at WBD.
In 2025, the company seemed on the brink of something substantial, even if its stock might not have reflected that optimism. Then, things took a turn. An unsolicited bid of $18 per share came when Paramount Skydance’s shares were around $12. Zaslav, aiming higher, wanted at least $30 a share despite laughter from others. Ultimately, he landed on $31 per share, totaling $80.5 billion when Paramount Skydance made its offer.
David Ellison, head of Paramount Skydance, is also a significant victor—not just for securing this groundbreaking deal, but for smartly bringing aboard Jerry Cardinale, a highly regarded media dealmaker, to lead the charge for WBD.
Though some might dismiss Ellison, the son of tech titan Larry Ellison, as merely fortunate, he is undeniably knowledgeable and strategically savvy. Having begun as a small indie film producer, he recognized the potential in the media landscape and transitioned to studios and Paramount, previously home to the once powerful CBS unit.
Today, Ellison stands at the helm of one of the globe’s largest media enterprises. He successfully captured a major asset by navigating through litigation and aggressive bids while questioning WBD’s decision to pursue Netflix. While there’s significant debt involved in this acquisition and expected cutbacks, I would argue that Ellison did not overpay in the end.
People speculated he might leverage his father’s resources to bid $34 a share, but he capped it at $31. This move was likely influenced by expert Jerry Cardinale and others who were acutely aware of the regulatory hurdles facing Netflix. They recognized that investor confidence was shifting due to Netflix’s promises of explosive revenue.
With Ellison winning, it’s fair to say that Cardinale and his team also emerged victorious.
Another notable winner is Melissa Zuckerman from PSKY, recognized for her intelligence and relatability. On the flip side, a particular loser in this saga is Netflix board member Susan Rice, whose ill-timed comments about Trump annoyed powerful figures.
If these are the current standings, it suggests that the tough challenges lie ahead. The new media giant, whatever it ultimately chooses to be called, will need to tackle challenging cost reductions and realignments to retain its competitive edge. I guess we’ll need to wait for the next round of winners and losers.
