Warner Bros. Discovery’s CEO just pitched employees on its impending Paramount Skydance deal, after spending the last few months arguing against it in favor of the now-nixed Netflix deal.
David Zaslav told WBD staffers at a company town hall on Friday morning that he’s excited to join forces with Paramount.
“Together, we can be a great company,” Zaslav said on the call, a recording of which was obtained by Business Insider.
“It’s not easy, but we’re getting bigger and we’re getting stronger,” he said. “And you guys are the envy of everyone in this business.”
WBD had agreed to sell its studio and HBO assets to Netflix for $27.75 per share. Paramount launched a rival bid of $30 per share for the whole company, including its cable TV networks, and pitched WBD shareholders that its deal was better.
Zaslav acknowledged that the decision to switch from its Netflix deal to Paramount’s rival offer “all happened very quickly.”
“For even us, the speed — it feels a little whiplash-y,” Zaslav said, adding that he and WBD’s board of directors are still “getting our bearings.”
Paramount “acted with determination” in pursuing WBD, said Bruce Campbell, WBD’s chief revenue and strategy officer.
WBD underwent a “thorough, rigorous strategic review process” and was under a legal obligation to continue to review and evaluate unsolicited offers that could bring shareholders more value, Campbell said.
Zaslav suggested that teaming up with Paramount is crucial to WBD’s survival.
“If Warner Bros. is going to survive, then we needed to be bigger, and we needed to be global,” Zaslav said.
Zaslav added that “some of these companies are getting so big that they can just run us over.”
The Paramount-WBD deal still needs regulatory approval, a process that will likely take at least six to 12 more months.
“The deal may not close,” Zaslav said. “If it doesn’t close, we get $7 billion, and we get back to work.”
Last week, WBD’s board told its shareholders that there could be an employee exodus if it took Paramount’s deal, citing the $6 billion in cost savings that Ellison’s company planned to achieve. Netflix had said it planned to get $2 billion to $3 billion in savings from its deal.
Read the original article on Business Insider
The post Leaked audio: Warner Bros. Discovery CEO David Zaslav tells employees Paramount deal felt ‘whiplash-y’ appeared first on Business Insider.
