Warner Bros Discovery's Downfall: How Netflix Snatched Up a Troubled Giant
David Zaslav, the CEO of Warner Bros Discovery, made a deal that seemed like a coup in 2021 when he merged his company with WarnerMedia, home to HBO and Warner Bros. At the time, Zaz claimed it would unlock "so much value and opportunity" for all parties involved. Fast forward to December 2025, five years after the merger was announced, and few people feel like they've benefited from the deal.
In reality, operators in Hollywood have struggled with cost cuts and declining box office returns. Shareholders have watched as Warner Bros Discovery's stock has plummeted, and its executives have had trouble strengthening its balance sheet. Fans and viewers, promised more diverse choices, have been left grasping at a streaming platform that couldn't decide on a name.
It seems the only person who has come out relatively unscathed is Zaslav himself, with a total pay package worth $51.9m last year. But for the rest of us, it's hard to see how this deal has delivered on its promises.
Warner Bros, one of Hollywood's most revered studios, has been paired off with various partners over the years β Time Inc, AOL, and AT&T. This latest move by Discovery only serves as another episode in a poorly performing franchise. Now Netflix is stepping in, willing to pay $82.7bn for Warner Bros and HBO assets.
The deal promises "more choice, more opportunities, more value" for Hollywood, investors, and viewers. But it's hard to see how this will change the fortunes of those involved. For now, it seems like Netflix has taken on a troubled giant, hoping to turn its luck around. Will this one work out? Only time will tell.
David Zaslav, the CEO of Warner Bros Discovery, made a deal that seemed like a coup in 2021 when he merged his company with WarnerMedia, home to HBO and Warner Bros. At the time, Zaz claimed it would unlock "so much value and opportunity" for all parties involved. Fast forward to December 2025, five years after the merger was announced, and few people feel like they've benefited from the deal.
In reality, operators in Hollywood have struggled with cost cuts and declining box office returns. Shareholders have watched as Warner Bros Discovery's stock has plummeted, and its executives have had trouble strengthening its balance sheet. Fans and viewers, promised more diverse choices, have been left grasping at a streaming platform that couldn't decide on a name.
It seems the only person who has come out relatively unscathed is Zaslav himself, with a total pay package worth $51.9m last year. But for the rest of us, it's hard to see how this deal has delivered on its promises.
Warner Bros, one of Hollywood's most revered studios, has been paired off with various partners over the years β Time Inc, AOL, and AT&T. This latest move by Discovery only serves as another episode in a poorly performing franchise. Now Netflix is stepping in, willing to pay $82.7bn for Warner Bros and HBO assets.
The deal promises "more choice, more opportunities, more value" for Hollywood, investors, and viewers. But it's hard to see how this will change the fortunes of those involved. For now, it seems like Netflix has taken on a troubled giant, hoping to turn its luck around. Will this one work out? Only time will tell.