Warner Bros. CEO Calls Paramount Acquisition ‘Whiplash-Y’ in Leaked Audio

Warner Bros. Discovery CEO David Zaslav spoke to employees on Friday about the company’s recent deal with Paramount, calling the move “whiplash-y” because of how fast it all happened. Initially, Warner Bros. Discovery (WBD) had planned to sell its assets, including HBO and the studio, to Netflix, but the streaming giant pulled out. Zaslav said, “We’re getting our bearings,” acknowledging the sudden shift.

During the town hall, Zaslav expressed excitement about joining forces with Paramount. “Together, we can be a great company. It’s not easy, but we’re getting bigger, and we’re getting stronger. And you guys are the envy of everyone in this business,” he told staff, according to a recording obtained by Business Insider.

Paramount offered $30 per share for WBD, higher than Netflix’s $27.75-per-share bid, and agreed to a “ticking fee” of 25 cents per share per quarter, or roughly $650 million, if the deal doesn’t close on time. WBD’s board and executives described the process as rigorous. Bruce Campbell, WBD’s chief revenue and strategy officer, said Paramount “acted with determination” and emphasized that the company had a legal obligation to evaluate any offer that could create more value for shareholders.

Zaslav explained that merging with Paramount is vital for WBD to stay competitive. “If Warner Bros. is going to survive, then we needed to be bigger, and we needed to be global,” he said, noting that companies like Alphabet, which owns YouTube, have far more revenue and influence in the streaming space.

If approved, the deal would give Paramount control of WBD’s streaming platforms, HBO Max and Discovery+, in addition to Paramount+, Pluto TV, and BET+. WBD’s U.S. streaming share in January was 1.4%, compared to Paramount’s 2.3%, far below Netflix’s 8.8% and YouTube’s 12.5%, according to Nielsen.

Paramount would also acquire WBD’s cable channels, including CNN, TNT, and HGTV, alongside its existing CBS network and cable channels like MTV and VH1. Zaslav highlighted potential collaboration between CNN and CBS News, though details are unclear.

The deal still requires regulatory approval in the U.S. and abroad, which Zaslav said could take six to 18 months. He added, “The deal may not close. If it doesn’t close, we get $7 billion, and we get back to work,” referring to the breakup fee Paramount would pay.

Political figures and previous deal negotiations also played a role. Netflix CEO Ted Sarandos met with the White House before the company withdrew, and former President Donald Trump publicly supported David Ellison, Paramount’s CEO. Meanwhile, WBD’s board had warned that employee departures could occur due to cost-cutting plans under Paramount, projected at $6 billion in savings. Netflix’s deal, in comparison, expected $2 billion to $3 billion in savings. Zaslav did not mention potential layoffs during the town hall.

Overall, Zaslav framed the Paramount deal as a necessary step for WBD to compete on a global level. “Some of these companies are getting so big that they can just run us over,” he said.

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