Business
David Ellison’s hunt for WBD made David Zaslav richer — and it may not be over
Paramount Skydance CEO David Ellison speaks during the Bloomberg Screentime conference in Los Angeles on October 9, 2025.
Patrick T. Fallon | Afp | Getty Images
This isn’t exactly what David Ellison had planned in September.
Just a few months ago, the Paramount Skydance CEO sent a letter to the Warner Bros. Discovery board of directors arguing a combination of the two media and entertainment companies made sense. That letter was the first of several that offered increasingly higher prices to acquire the company along with arguments of why the assets were better together.
Paramount’s interest spurred a formal sale process — bringing Comcast and Netflix into the mix — which ultimately doubled the value of Warner Bros. Discovery shares and culminated, at least for the moment, in Paramount losing out in the bidding war it started.
On Friday, Netflix announced a deal to acquire HBO Max and the famed Warner Bros. film studio for $27.75 per share, or an equity value of $72 billion. WBD will move forward with a plan to separate out its pay-TV networks, such as CNN and TNT Sports, before the deal closes.
Instead of supercharging Paramount, just months after gaining control of the company through a merger with Skydance, Ellison effectively handed a prized jewel of the media and entertainment industry to its most dominant player, strengthening Netflix’s reach and stripping Paramount and Comcast’s NBCUniversal of an obvious merger target.
“It wasn’t for sale before, and they certainly hadn’t cleaned up the assets or separated the assets in the way they have right now,” said Netflix co-CEO Ted Sarandos in a conference call Friday morning after announcing the deal. “I think that kind of goes to the ‘why now.'”
Ellison jump-started a process that has made a lot of money for Warner Bros. Discovery CEO David Zaslav, WBD’s executive team and its shareholders.
Zaslav’s share
Zaslav currently owns more than 4.2 million shares of Warner Bros. Discovery, with another 6.2 million shares that would be delivered to him in the future via previously granted stock awards, according to Equilar. Zaslav also has a grant of almost 20.9 million options with an exercise price of $10.16, Equilar found.
Based on the Netflix-WBD transaction price of $27.75 per share, all of that adds up to more than $554 million for the WBD CEO.
Factoring in another 4 million shares that Zaslav is set to receive in January, according to a person close to the situation who declined to be named speaking about the executive’s holdings, the true total is closer to $660 million.
For shareholders, the sale process has brought a similar windfall. Warner Bros. Discovery stock closed at $12.54 on Sept. 10, the day before The Wall Street Journal reported Paramount was preparing a bid for the company.
On Friday morning, Warner Bros. Discovery shares were up almost 3% to more than $25 apiece. That’s more than double Warner Bros. Discovery’s unaffected sale process price and a return to 2022 levels when WarnerMedia and Discovery first merged.
That’s vindication for Zaslav, who has spent nearly four years coming under fire from Hollywood and investors for failing to deliver for shareholders. With Friday’s announcement, he’s effectively pulled victory from the jaws of defeat.
And still, Paramount is likely not done with its pursuit of buying all of Warner Bros. Discovery.
Paramount’s hostile play
Ellison has wasted no time at the helm of Paramount Skydance, transforming the company through deals and acquisitions.
Since the merger closed in August, Paramount has brought on C-suite executives and high-profile Hollywood talent such as the Duffer Brothers. It secured the rights to develop a live-action feature film based on Activision’s Call of Duty video game franchise and struck a $7.7 billion deal for UFC rights.
Ellison’s hunt for Warner Bros. Discovery was his biggest endeavor since taking control of the company.
Paramount’s lawyers sent a letter to Warner Bros. Discovery this week, first reported by CNBC, claiming the sale process had been rigged in Netflix’s direction. Paramount has accused Warner Bros. Discovery of failing to properly consider its offer of $30, all-cash, and instead selling to Netflix as a predetermined outcome.
Netflix made an initial bid for WBD’s studio and streaming assets of $27 a share, according to a person familiar with the matter. That trumped Paramount’s offer at the time and turned the trajectory of the sales talks in Netflix’s direction, said the person, who asked not to be named because the discussions were private.
Paramount was the only bidder interested in acquiring all of WBD’s assets — the film studio, streaming service and TV networks. It has maintained that its offer is superior.
Paramount’s executives and advisors valued the Discovery Global networks portfolio at close to $2 a share, based on its predicted trading multiple and estimated leverage ratio, according to people familiar with the matter, who asked not to be named because the discussions were private. Discovery Global would include the CNN, TNT Sports and Discovery channels.
Warner Bros. Discovery believes Discovery Global could have a value of $3 per share or more if it trades well in the public markets, according to other people with direct knowledge of the matter.
Paramount has also argued there are tax efficiencies for shareholders in acquiring the whole company rather than buying only a portion of it, and that Netflix’s bid comes with steeper regulatory risk. The Trump administration’s view of the proposed combination is one of “heavy skepticism,” CNBC reported Friday.
Paramount offered a break-up fee of $5 billion if the proposed deal didn’t get regulatory approval, according to the people familiar.
Netflix’s bid included a $5.8 billion break-up fee in case the deal doesn’t get regulatory approval, according to a Securities and Exchange Commission filing Friday.
Paramount is now weighing its options about whether to go straight to shareholders with one more improved bid — perhaps even higher than the $30-per-share, all-cash offer it submitted to WBD this week.
If it does, Netflix would have a chance to match that bid. The end result would mean even more money for WBD shareholders — and more money for Zaslav.
— CNBC’s Nick Wells contributed to this report.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast’s planned spinoff of Versant.
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Business
The investment issues Labour must fix before the public can back its bid to join in
On the whole, Britain is not a nation of investors and the government wants that to change.
Following on from Rachel Reeves’ plans last year, the advertising campaign to create more retail investors is underway and with further changes afoot, the overall picture is one of Labour steering savers towards understanding why, and how, they can create better long-term returns with their money.
The cut to the cash ISA limit, however crude and unpopular, is one such upcoming change. We’ve just entered the final year of the £20,000 allowance being able to be put entirely into a cash ISA; as of April 2027, £8,000 of it will be reserved for investing-only. For those who don’t save over that amount annually it’ll make no material difference, but even the existence of the change can be argued is a prod to the consciousness of people to wonder if they should be doing something else entirely.
Then there’s targeted support.
Among industry insiders there is hope this could make a material difference, given time – in essence, those who have significant savings in cash being able to be spoken to by their bank or provider over other options, potentially including investing.
At Innovate Finance this week, a key summit of UK FinTech Week,The Independent heard from a senior executive at one neobank that the average client with them had savings in excess of £15,000 – precisely the sort of consumer who could benefit from targeted support to explain how, over the long term, they might be better off putting a portion of that excess cash into… well, something other than cash, which loses its value over time due to inflation.
Another suggested an uptick in app users branching out from just having current and savings accounts, to other products within their sphere including stocks and shares ISAs – where investing returns will be tax free for consumers.
Economic secretary to the Treasury Lucy Rigby launched the nationwide ad campaign, along with chancellor Ms Reeves, at the London Stock Exchange on Thursday.
“With greater awareness of the benefits of investing, more people will be able to make informed decisions about how to make their savings work harder for them,” Ms Rigby said. “That will mean greater prosperity and financial resilience for households across the country and strengthened domestic capital markets too.”
The aforementioned plans and prospects certainly all align with raising awareness. That is a first step.
But there are greater key issues to deal with.
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The advert campaign with Savvy the squirrel – conversational cab rides, explain-it-all website and more – will hopefully fill some painful gaps in the first instance around British people’s knowledge around the subject. Unlike in the US and several European countries, where investing is fairly commonplace, in the UK it’s not often spoken about, let alone fully understood.
Research from Barclays and their Investment Readiness Index showed this week that over a third of people (34 per cent) say fear of losing money is their main reason for not starting to invest, while nearly a quarter (23 per cent) said they believed there was a chance that a portfolio of well-known global companies could become “totally worthless” within five years.
Barclays’ report added for context that outcome was “an extremely unlikely” one.
But to really change some of those would-be investors’ minds, perhaps the response should have been more blunt. Perhaps the Treasury, the government and the campaign as a whole could stand to be a bit more…direct.
There is, in all probability, next to no chance that such a mix of companies would become worth zero in five years – unless something genuinely catastrophic happens to the world in which case we’ve all got more important issues to deal with than our portfolio performance. Maybe the Barclays report itself could likewise have benefited from feeling more freely able to state as such?
So, yes, financial education is absolutely one part, but so too is the language and understanding and framing of risk for people.
Articles, videos, all the learning activities across the web and within companies to help introduce people to investing – in every one of them you’re liable to find the disclaimer-style warning along the lines of: investments can go up as well as down, you may get back less than you invest and so on. Some find it off-putting to begin with, some barely even notice it.
In the words of the FCA, you must always “give a balanced impression of the benefits and risks of an investment product or service”.
That same pointing-out-of-the-risks wording and tone is another aspect which is being re-evaluated and could be switched up.
Now, while nobody wants that removed or watered down unduly to the point that bad actors or bad products are being pushed on newly introduced people to investing, there is still a misrepresentation of what risk means – it’s not always about you could lose all your money.
And, the reward (in theory) for taking on board risk is the possibility for higher returns, over time, than just cash alone (through interest) would give you.
Industry insiders have long also pointed out that the same – or reverse – warning is not applied to cash savings products: the risk here being you lose buying power over time due to inflation.
So language, as well as education, must remain on the table to improve and perhaps nudge people more forcefully towards a choice which helps them, similarly to reminding them to check employer contributions to their workplace pensions or taking out travel insurance before they fly.

There will still be one remaining gap though, even after people tentatively read the info, breathe in the adverts and eventually follow Savvy the squirrel down a new journey to take the plunge in investing: where are those people starting?
The ad campaign will not direct people to choose a particular platform or product, though many – Barclays, Hargreaves Lansdown, NatWest and more – are sponsoring the campaign and will be placed on the website as a result. But people still have to choose, and that particular analysis paralysis point has already left many ready to take the first steps, but unsure where to place their feet.
There are more new stocks and shares ISA providers available, loads of low-cost platforms as well as established, recognised names to choose from and deciding which suits any given person’s initial investment plan is as much a key decision as parting with their first few pounds in the first place.
It is important, for the long-term wealth of families, that more people start to invest. It is a positive thing that more information is therefore being pushed in front of them, to be able to make that call in an informed fashion.
But the reason it’s all needed in the first place is an overabundance of caution, a generational stepping-away from investing as a run-of-the-mill part of individual money management. Getting Brits back on board might therefore require less, not more, of that gentle approach to remedy the situation.
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