Leaked Audio Reveals Warner Bros. CEO Called Paramount Deal a ‘Whiplash-Y’ Move
Warner Bros. Discovery CEO David Zaslav spoke to employees Friday about the company’s upcoming deal with Paramount, calling the rapid shift from Netflix to Paramount “whiplash-y.” A recording of the town hall was obtained by Business Insider.
Zaslav explained that Warner Bros. Discovery (WBD) had been negotiating a sale to Netflix for $27.75 per share, but Netflix backed out. Paramount quickly made a higher offer of $30 per share and agreed to pay a “ticking fee” of 25 cents per share—about $650 million per quarter—if the deal didn’t close on time.
“For even us, the speed — it feels a little whiplash-y,” Zaslav said. “We’re getting our bearings.”
He emphasized that joining with Paramount would make WBD stronger and more competitive. “Together, we can be a great company. It’s not easy, but we’re getting bigger, and we’re getting stronger. And you guys are the envy of everyone in this business,” he added.
Paramount’s bid gives it control of HBO Max, Discovery+, and its own platforms like Paramount+, Pluto TV, and BET+. Even combined, the streaming share would be below Netflix’s 8.8% and YouTube’s 12.5% in the U.S. Zaslav highlighted the importance of size, noting that some tech giants could “just run us over” and emphasizing that growth is essential for survival.
The deal also includes WBD’s cable assets, such as CNN, TNT, and HGTV. Zaslav said CNN could have “the opportunity to work with CBS News,” though details weren’t shared. He praised CNN’s coverage of ICE operations in Minnesota, saying their journalists “had a huge impact on everybody in America and had an influence on what happened in there in Minneapolis.”
The acquisition still needs regulatory approval, which could take six to 18 months. Zaslav noted that if the deal falls through, WBD would receive $7 billion from Paramount as a breakup fee.
According to Business Insider, Zaslav said the decision to switch from Netflix to Paramount happened very quickly. Bruce Campbell, WBD’s chief revenue and strategy officer, said Paramount “acted with determination” and that WBD had a “thorough, rigorous strategic review process” to consider all offers for shareholders.
The White House has stayed neutral in the negotiations. Netflix CEO Ted Sarandos reportedly met with officials before Netflix declined to raise its bid, while former President Donald Trump praised Paramount CEO David Ellison, calling him “great” for his leadership in the deal.
Zaslav did not address potential layoffs or reorganizations tied to the Paramount acquisition, though WBD had previously warned shareholders that cost-saving plans could risk employee departures.
This merger could reshape the media landscape, giving Paramount a much larger library and global reach while creating a potential competitor to major streaming and tech companies.
This move shows how fast the media business can shift and how important scale has become. Paramount is taking a big risk, but it could pay off if the combined assets succeed. Do you think this Paramount-WBD deal is smart or too risky? Share your thoughts in the comments.