Warner Bros. Discovery CEO David Zaslav stands to pocket a whopping $500 million if the leisure conglomerate is bought on the worth Paramount Skydance has supplied, in accordance with a brand new report.
Zaslav’s payout would come from 21 million shares that instantly vest upon a sale of the leisure conglomerate, Semafor reported on Thursday, citing particulars from the CEO’s contract.
The potential windfall provides a putting twist to the continuing takeover battle that has rocked the nation’s media panorama.
Paramount Skydance supplied to purchase WBD for $23.50 per share — about $56 billion in complete — The Publish reported earlier this week.
At that valuation, Zaslav would earn a half-billion-dollar payday as his inventory holdings and unvested fairness awards mechanically convert.
Whereas WBD rejected Paramount Skydance’s newest bid, the suitor is readying one other provide — and President Trump favors the David Ellison-run leisure large amongst rival bidders, The Publish reported.
Zaslav, 65, has lengthy been one of many highest-paid CEOs in media, at the same time as Warner Bros. Discovery’s inventory has lagged behind trade friends for the reason that 2022 merger that mixed Discovery Inc. and WarnerMedia.
In June, shareholders voted towards his $52 million compensation bundle in a non-binding however extremely uncommon rebuke of company pay practices.
Zaslav has obtained $470 million in complete compensation since 2019, together with a $200 million award tied to his contract renewal forward of the Discovery–Warner merger, Semafor reported.
Greater than half of these awards stay “out of the cash” — which means the inventory should rise considerably earlier than they are often absolutely cashed in.
Warner Bros. Discovery’s shares had plunged roughly 60% from their 2021 ranges earlier than takeover hypothesis despatched them hovering earlier this month.
The corporate introduced Tuesday it has obtained “unsolicited curiosity” from a number of events and was reviewing “strategic options” to maximise shareholder worth — language that successfully put the storied studio on the public sale block.
Zaslav has reportedly rejected three personal presents from Ellison, who’s backed by his billionaire father Larry Ellison, in addition to personal fairness companies Apollo World Administration and RedBird Capital.
Sources beforehand informed The Publish that Zaslav needs at the very least $30 a share, or greater than $70 billion, for the whole firm — a price ticket that may worth Warner Bros. Discovery effectively above latest bids.
Zaslav’s defenders argue that the corporate’s turnaround beneath his management — together with record-breaking box-office outcomes and a rebound in streaming subscriptions — justifies the premium.
Warner Bros. grew to become the primary studio to surpass $4 billion in world ticket gross sales this 12 months, whereas its Max streaming platform has climbed to No. 3 worldwide with roughly 125.7 million subscribers worldwide.
Critics, nevertheless, have pointed to the corporate’s $30 billion debt load and deep cost-cutting measures — together with layoffs and the shelving of accomplished movies — as proof of mismanagement.
The sale course of, now led by bankers at JPMorgan and Allen & Co., will give bidders entry to Warner’s financials beneath non-disclosure agreements.
Ellison is anticipated to return with a fourth provide, sources informed The Publish, although he has signaled reluctance to go above $25 a share.
Folks near him say he’s betting that regulatory hurdles and Trump’s hostility towards rival Comcast — proprietor of left-leaning MSNBC — will slender the sector and enhance his odds of touchdown the deal.
The Publish has sought remark from WBD.
