According to reports from The Wall Street Journal and Bloomberg, Ellison’s initial $20-per-share offer for WBD was rejected, prompting him to consider bypassing the company’s board entirely and appealing directly to shareholders. Such a deal could value the HBO and CNN parent at around $60 billion, including debt — a formidable price tag that could reshape the balance of power in Hollywood.
Zaslav’s Split Strategy
WBD CEO David Zaslav has a different vision. He reportedly favors splitting the company — separating the profitable HBO and Warner Bros. studio divisions from its struggling cable networks like CNN and TNT. The rationale is clear: while the streaming and studio arms continue to drive growth, traditional cable television is in steep decline.
Analysts estimate that HBO Max could generate about $2.3 billion in EBITDA by 2027, though that’s still far below Netflix’s profitability. At a 15-times multiple, HBO Max would be worth roughly $35 billion, while the prestigious Warner Bros. film studio — with a historic catalog that includes Casablanca, Harry Potter, and The Matrix — could fetch about $45 billion. The legacy cable segment, meanwhile, might be valued closer to $25 billion at five times earnings.
After accounting for WBD’s $31 billion net debt, the total breakup value could reach $74 billion, or about $30 per share. Discounted to present value, that figure aligns closely with Ellison’s $60 billion bid — a 33% premium on WBD’s current stock price.
A High-Stakes Gamble
For Zaslav, entertaining takeover talks could complicate his planned tax-free breakup. But delaying also carries risk. Market sentiment in the media sector remains volatile, and waiting too long might invite multiple smaller suitors targeting individual divisions rather than the whole company.
Meanwhile, industry peers are watching closely. Netflix co-CEO Greg Peters recently warned of the “abysmal track record” of major media mergers — a reminder that combining massive entertainment assets often leads to culture clashes and disappointing synergies.
The Bigger Picture
If Ellison succeeds, the acquisition would create a sprawling entertainment powerhouse — blending Paramount’s broadcast and streaming assets with WBD’s deep film and television portfolio. It would also position the 41-year-old son of Oracle founder Larry Ellison as a defining figure in the next chapter of Hollywood’s consolidation era.
But with regulatory scrutiny, shareholder skepticism, and strategic resistance from Zaslav, Ellison’s bid faces formidable obstacles. Still, in a media landscape where scale is everything and streaming wars show no signs of slowing, the Skydance boss appears ready to bet big — and move fast — to capture Warner Bros. Discovery before it carves itself apart.