David Ellison to potentially announce bid for Warner Bros. Discovery soon

Media mogul David Ellison is gearing up to officially submit a merger bid for Warner Bros. Discovery, according to sources familiar with the situation. The bid could be disclosed as early as this week. However, it’s important to note that the process is not set in stone, and there might be delays or no bid at all.

Insiders suggest that if Ellison does make an offer, negotiations with Warner Bros. Discovery’s CEO, David Zaslav, may become quite intricate. Zaslav has indicated that he’s seeking $30 per share or more for the company, while Ellison’s reported offer of $20 per share falls short of the mark.

Ellison has been in talks with buyout giant Apollo Global Management for financing, as his father, Larry Ellison, may not be as interested in media deals. If a bid is made public in the coming days, sources close to the situation believe that the Ellisons won’t overspend on the acquisition.

Both parties are looking to control the narrative during the merger discussions. Ellison aims to convince Zaslav’s board that the sale is necessary, highlighting potential antitrust concerns that could deter other buyers like Netflix or Amazon. Despite their current rivalry, money has the power to mend fences, and if a deal is reached, both Ellison and Zaslav could be all smiles.

The Ellisons are also engaging in a public relations campaign to critique Zaslav’s tenure at Warner Bros. Discovery, citing missed earnings projections and inflated compensation. Conversely, sources familiar with Zaslav’s perspective claim that Ellison overpaid for Paramount and other acquisitions, suggesting that Zaslav’s track record speaks for itself.

Warner Bros. Discovery has seen success with revenue generation, successful content, and a profitable streaming service like HBO Max. Zaslav’s strategic decisions have drawn praise from analysts and support from the company’s board. The upcoming corporate restructuring is anticipated to create value for shareholders.

As the negotiations unfold, Ellison will need to act swiftly to avoid competition from other potential buyers like Netflix, Amazon, or Apple. The situation is dynamic, and it remains to be seen how the merger talks will progress.