David Zaslav, the CEO of Warner Bros. Discovery (WBD), is reportedly strategizing a bidding war for his media conglomerate, with unexpected potential support from allies of former President Donald Trump. This move is being viewed as unconventional, especially as Zaslav aims to secure a deal that exceeds the $23.50 per share already proposed by Paramount Skydance, led by CEO David Ellison and his father Larry Ellison, the co-founder of Oracle.
The Ellison family is keen on acquiring WBD, attracted by its top-ranked studio and profitable cable channels such as HBO and CNN, despite the network’s recent low ratings. Insiders suggest Trump’s interest in this acquisition relates to a desire for more favorable media representation through CNN, which has faced accusations of anti-Trump bias in its coverage.
Zaslav’s plan extends beyond simply accepting the Ellisons’ offer; he is looking to bring other potential bidders into the fold, namely major corporate players like Netflix, Amazon, and Comcast. The distinction lies in the deal’s approval process, which would go before a free-market-oriented Department of Justice (DOJ) antitrust division instead of the Federal Communications Commission (FCC), which is run by a staunch conservative.
Notably, Zaslav’s reflections on the antitrust landscape are optimistic, suggesting that even if the DOJ were to initially oppose a sale, federal courts might side with him, given the precedent set during the Trump administration. A notable example includes a court overruling the DOJ’s decision against the AT&T acquisition of TimeWarner, a scenario that could potentially parallel Zaslav’s situation.
Despite concerns about the potential legal battles that could ensue, particularly for Comcast’s CEO Brian Roberts, there is a prevailing belief among media analysts that he must pursue a deal with WBD to remain competitive in a content-driven industry. Some have suggested that Roberts could even enhance his company’s standing by adopting strategies that mirror those of the Ellisons, including hiring politically balanced leadership for its programming.
Zaslav remains open to a sale to the Ellisons but is clearly keen on maximizing the financial outcome of any transaction, emphasizing that the evolving media landscape makes traditional antitrust concerns less significant. By engaging multiple bidders, Zaslav hopes to reinforce his negotiating position and possibly drive the sale price higher than previously offered. As the situation evolves, this high-stakes negotiation within the media industry promises to capture significant attention.