Sell or Split? David Zaslav Faces Defining Crossroads at Warner Bros. Discovery
Warner Bros. Discovery CEO David Zaslav is approaching what could be the most pivotal decision of his career — whether to sell the company to an eager suitor like Skydance Media CEO David Ellison, or to move ahead with a bold plan to split the company in two.
Zaslav, who rose to prominence through aggressive dealmaking — including the $43 billion merger with WarnerMedia — now faces increasing pressure to unlock value from a company grappling with debt, industry disruption, and fierce competition. The options before him could reshape the future of one of Hollywood’s most iconic studios.
Ellison Eyes Warner Bros. Discovery, But Initial Offer Falls Short
Reports emerged last week that David Ellison, son of Oracle founder Larry Ellison and head of Skydance Media, has expressed strong interest in acquiring Warner Bros. Discovery (WBD). According to Bloomberg, an initial offer of $20 per share was rebuffed by WBD leadership.
Industry insiders believe Ellison is unlikely to walk away. With potential financial backing from Larry Ellison or private equity firms like Apollo, he may return with a higher bid — or even take the offer directly to shareholders, if boardroom talks stall.
But challenges remain. Regulatory scrutiny, especially under a possible second Trump administration, adds uncertainty to any mega-merger in the entertainment space. While Ellison’s team argues that Paramount — his other acquisition target — could pass antitrust checks more easily, that rationale may not outweigh the dollar value WBD believes it can extract from another strategy: splitting the company.
The Alternative: A Strategic Split by April
Instead of selling, Zaslav is reportedly preparing to split WBD into two separate entities by April. One would house HBO and Warner Bros. Studios, the company’s premium content engines, while the other would contain the Discovery networks, CNN, and other linear assets, along with a sizable portion of the company’s debt.
The proposed split, insiders say, would allow the studio-focused company to operate unburdened by legacy cable infrastructure, making it significantly more attractive to strategic buyers like Apple, Netflix, Sony, or Comcast.
“This move could unlock enormous shareholder value,” said Jessica Reif-Ehrlich, a media analyst at Bank of America. “As a standalone entity, WBD’s streaming and studio assets would likely trigger a bidding war. A breakup allows for more focused management and creates strategic optionality.”
Reif-Ehrlich, one of the first on Wall Street to advocate for such a move, compared the possible post-split options to “a Cheesecake Factory menu” — from operating the Discovery business as a cash cow, to piecemeal asset sales, or a full-scale private equity exit.
A Crown Jewel That’s Sparking Hollywood Speculation
With premium IP like DC Comics, Harry Potter, and Game of Thrones, Warner Bros. remains one of the most attractive media assets on the market — and not just to Ellison. The company is viewed as a “crown jewel” by analysts and industry observers alike.
Still, not everyone is convinced a bidding frenzy is guaranteed.
Greg Peters, co-CEO of Netflix, poured cold water on speculation about a Warner Bros. deal during a recent conference, stating:
“We come from a deep heritage of being builders rather than buyers… one should have a reasonable amount of skepticism around big media mergers.”
Even Rich Greenfield of Lightshed Partners, another influential Wall Street voice, cautioned that Warner Bros.’ catalog content — while valuable — isn’t necessarily aligned with Netflix’s growth strategy.
“Netflix thrives on original IP,” Greenfield wrote. “While Warner Bros. has iconic properties, Netflix is already successfully licensing what it needs from studios hungry for cash.”
What’s Next: All Eyes on April
For now, Zaslav is keeping his cards close, but it’s evident that a transformative moment is nearing for Warner Bros. Discovery. Whether Ellison returns with a sweetened offer or the company moves forward with its split, the next few months could redefine the entertainment landscape.
One thing is certain: Zaslav’s next move will not just shape his legacy, but determine the future of one of Hollywood’s most storied studios.
