Skydance’s Makan Delrahim Navigates Warner Bros. Discovery Sale

Los Angeles, CA – Paramount Skydance’s recent hiring of Makan Delrahim marks a significant step as the media giant’s CEO hopes to persuade Warner Bros. Discovery to consider a sale. Delrahim, once the Justice Department’s antitrust chief during the Trump administration, began his new role last week and is quickly developing a strategy to entice Warner Bros. CEO David Zaslav into selling.

Sources indicate that Delrahim’s approach involves convincing Zaslav to entertain an offer from tech mogul Larry Ellison, warning that failing to sell could lead to a future similar to Shari Redstone‘s. Redstone sold her media empire Paramount for $8 billion after delays that resulted in diminished value.

Delrahim is well-positioned due to his connections at the White House, but Zaslav is known for his acumen. Warner Bros. Discovery, often referred to as WBD, differs greatly from Paramount and has recently faced scrutiny over its stock performance. Despite this, industry insiders recognize Zaslav’s achievements, including significant box-office successes and profitability for HBO Max.

To improve sale prospects, Zaslav has been restructuring the company by separating cable channels like CNN and reducing debt related to the TimeWarner merger. Goldman Sachs has been engaged to explore potential buyers, attracting interest from major players like Netflix, Amazon, and Apple.

A source familiar with Zaslav remarked, “If the Ellisons want this, they better bring cash and a lot of it.” Reports suggest Ellison may bid between $22 to $24 per share for WBD, but Zaslav aims higher, targeting the $30 range for the streaming and studio assets.

Delrahim identifies Netflix and Amazon as the main potential suitors for WBD beyond Ellison’s interests but notes potential regulatory challenges. As negotiations unfold, Delrahim may consult with major WBD shareholder John Malone for support, but any approach must align with Zaslav’s negotiating savvy developed through years of experience in media deals.

As Skydance strategizes, the bidding environment remains dynamic, with potential decisions looming on the future of Warner Bros. Discovery.