Unhedged Who gets to buy Warner Bros Discovery?
30 snips
Dec 9, 2025 
Oliver Barnes, a US deals correspondent focused on mergers in Hollywood, joins James Fontanella-Khan, the US financial editor at the Financial Times, for a lively discussion about the bidding war for Warner Bros. Discovery. They delve into Netflix's strategic entry into the auction, the surprising move by Paramount with an all-cash offer, and the implications of antitrust concerns. The conversation also explores the influence of politics on the auction dynamics and how consolidation might benefit indie cinema. Tune in for insights on a pivotal moment in the entertainment industry!
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Zaslav’s Breakup Strategy
- Warner Discovery was created by David Zaslav merging Discovery with Warner Brothers and then underperformed for years.
- Zaslav responded by planning to break up the company to separate cable from studio and streaming assets.
Short-Term Surge, Long-Term Lag
- Warner Discovery's stock surged 190% in six months but was only up 3% over five years.
- The recent bidding contest created concentrated value despite long-term underperformance.
Ellisons’ Dramatic Bid Delivery
- The Ellisons (Larry and David) built a new Hollywood powerhouse by merging Skydance with Paramount.
- David Ellison personally delivered an initial bid to David Zaslav's home, dramatizing the takeover attempt.