Everyone knows that Paramount Skydance ended up winning the bidding war involving Warner Bros. Discovery.
But who truly came out on top in these takeover battles of the century?
A dramatic six-month back-and-forth between major players in the media industry, including Warner Bros. Studios, HBO Max, and CNN, reached a dramatic conclusion late Thursday. Regular followers of this column might not have found it all that surprising.
Let’s start with Netflix and its co-CEO, Ted Sarandos. He’s been a key player in attempting to outmaneuver WBD in the streaming landscape. Until recently, he seemed to be in a strong position. Yet, oddly enough, he can be seen as both a winner and a loser.
On the winning side, he got to step back after quite a bit of drama. Netflix was never in desperate need of this deal. Interestingly, after I mentioned on X Feed that Netflix might be collapsing, the stock value actually jumped by over 10%.
Historically, Netflix grew organically, not through major acquisitions. But Sarandos accumulated substantial debt during this process, attracting the attention of regulators. By bowing out, he can refocus on strengthening his business rather than chasing a risky deal.
But there’s a downside for Sarandos as well. It’s honestly puzzling why a veteran like him believed this was a good move for shareholders—considering he lost about $200 billion in market capitalization during talks. It raises questions about how merging the number one and three streaming services would align with antitrust regulations.
There’s also uncertainty about whether federal investigators have completely dropped their earlier inquiry into Netflix’s dominant market position.
Now, moving on to David Zaslav, the CEO of Warner Bros. Discovery.
He clearly emerges as a winner. I’ve known Zaslav for quite some time, and he faced many challenges at NBCUniversal before leading Discovery Inc.
His big break came in 2022 when AT&T spun off Warner Media and his mentor, John Malone, combined forces with Discovery. Although Zaslav faced a shaky start, with substantial debt and pressure to cut costs, he gradually began to revitalize Warner Bros. Discovery. By 2025, his company was poised for something significant, despite what stock prices suggested. Then, everything changed. Initially, he received an unsolicited offer of $19 per share while Paramount Skydance’s shares valued closer to $12.
Zaslav started generating buzz about WBD among media and technology figures until the competition boiled down to just Netflix and Paramount Skydance.
His goal was at least $30 per share, though many found that laughable at first. But, believe it or not, he got what he wanted last week when Paramount made a $31 per share offer, totaling $80.5 billion.
David Ellison, CEO of Paramount Skydance, certainly qualifies as a winner, and it’s not just because he orchestrated this massive media deal. He also had the savvy to bring in Jerry Cardinale, a top media dealmaker, to lead the charge for WBD.
Some may think he simply benefitted from his father, tech billionaire Larry Ellison’s backing, but that doesn’t do justice to his skill and insight. Starting as an indie film producer, he later made the strategic move to larger studios and Paramount, the erstwhile giant of CBS.
Now, he’s leading one of the largest media companies in the world. He managed to secure what some might call the big fish after navigating through litigation, hostile bids, and strategic challenges to WBD’s earlier decision to consider a Netflix partnership. Sure, there’s debt to tackle and cost-cutting ahead, but I really don’t think he overpaid in the end.
It was widely speculated he could push for a $34 per share bid against Zaslav, but he capped it at $31. Why? Cardinale’s expertise in managing bidding wars proved invaluable.
He also took wise advice and didn’t overextend financially. Cardinale and his team recognized the regulatory hurdles Netflix is currently facing.
If Ellison is a winner, it’s fair to say Cardinale and his associates are also part of that success.
Another noteworthy winner is PSKY’s savvy and personable aide, Melissa Zukerman. On the flip side, a notable loser in this scenario is Netflix board member Susan Rice, whose ill-timed comments about President Trump stirred frustration at the White House.
But as the dust settles, it seems the challenging part lies ahead for this new media titan, whatever it ends up being called, as it faces the tough reality of necessary cost reductions and realignments to stay competitive. I guess we’ll just have to wait and see who the next round of winners and losers will be.
