Paramount’s CEO David Ellison Eyes Warner Bros. Discovery Acquisition with Legal Muscle

Skydance CEO enlists top antitrust lawyer to woo David Zaslav amid fierce competition from streaming giants and regulatory hurdles.

Paramount Skydance’s CEO David Ellison is setting his sights on a bold new target: Warner Bros. Discovery (WBD). Having recently brought aboard Makan Delrahim, the former U.S. Department of Justice antitrust chief under the first Trump administration, Ellison is now strategizing how to convince WBD CEO David Zaslav to sell, potentially for most or all of the media conglomerate.

According to sources, Delrahim, widely regarded as one of the most astute media dealmakers due to his extensive White House ties, is devising a plan to make Ellison’s offer irresistible to Zaslav. The underlying pitch suggests that if Zas declines, he risks facing a future reminiscent of Shari Redstone’s experiences in the media business—a cautionary tale of waiting too long to sell.

Skydance’s acquisition of Paramount for $8 billion, which included CBS, Comedy Central, MTV, and a mid-tier Hollywood studio, demonstrated Ellison’s appetite for high-profile media properties. Now, with WBD in his sights, he is aiming for a far larger prize.

However, Zaslav is no novice. Under his leadership, Warner Bros. studio has achieved record-breaking box office revenues, surpassing $4 billion in ticket sales so far this year. HBO Max has become both profitable and popular, growing to the third-largest streaming platform, while the company continues to chip away at debt from the TimeWarner merger. These accomplishments have piqued interest from other media giants including Netflix, Amazon, and potentially Apple, with Goldman Sachs already receiving inquiries from serious suitors for WBD’s streaming and studio assets.

Industry insiders note that Zaslav is expecting a valuation well above the $22–$24 per share figure reportedly floated by Ellison. According to sources, Zaslav’s target is closer to $30 per share for just the streaming and studio segment, highlighting the challenges Ellison faces in executing the acquisition.

Delrahim’s role is pivotal. With his experience navigating regulatory landscapes, he could influence perceptions of the deal’s feasibility, particularly given the complex consent decrees and regulatory scrutiny surrounding potential Amazon and Netflix bids. There is even speculation that John Malone, WBD shareholder and influential media figure, could be enlisted to directly engage Zaslav.

Despite the challenges, Ellison remains optimistic. Meetings at Skydance are reportedly intense and ongoing, focusing on how best to position the offer to Zaslav. Yet, insiders caution that this will not be an easy acquisition. Zaslav’s experience as a protégé of Jack Welch at NBCUniversal and his track record managing the Discovery-TimeWarner merger have made him a shrewd negotiator who understands both balance sheets and deal mechanics.

With multiple suitors circling, regulatory considerations in play, and a formidable CEO at the helm of WBD, the battle for the media giant is poised to be as strategic as it is high-stakes. Whether Ellison’s legal acumen and ambition will be enough to secure Warner Bros. Discovery remains to be seen—but the media world is watching closely.