Paramount ‘offered’ Zaslav co-CEO role as WBD pursuit hots up

Paramount Skydance offered to make Warner Bros Discovery (WBD) chief exec David Ellison its co-chief exec amid attempts to buy out the US studio.

WBD revealed earlier this week that it was exploring its options having received “unsolicited interest” from “multiple parties”, with David Ellison’s Paramount leading the charge.

Three offers have now been made according to multiple US reports, with the latest coming in at around $24 a share. WBD’s share price closed on Wednesday at $20.53.

The New York Times has also reported that Paramount told Zaslav he could become co-chief executive and co-chairman of the combined company, alongside Ellison, should a takeover with his company proceed.

The US newspaper cited a letter from Ellison to the WBD board, which claimed Paramount would be the most natural fit for the HBO owner and allow it to compete with rivals.

“We are confident that we are the best partner for WBD, with a combination of our two companies creating a scaled Hollywood champion to the benefit of both our companies’ shareholders, consumers, and the entertainment industry at large,” the letter read.

It also pointed to potential regulatory scrutiny if a takeover was agreed with an alternative US studio.

According to the NYT, Ellison wrote that “other potential acquirers of WBD – today or in the future – would need to overcome significant (perhaps insurmountable) hurdles given their dominant market positions.”

While a Paramount takeover would likely face regulatory scrutiny, it is likely that alternative suitors - believed to include Comcast and Netflix - would face greater challenges because of the companies’ size.

WBD, which is in the midst of separating into streamer and studio arm Warner Bros. and networks-focused Discovery Global, said earlier this week that its board would evaluate all options including selling off portions of the business or the company in its entirety.

WBD nor Paramount commented on the NYT report.