Warner Bros CEO says Paramount takeover ‘good for the industry’
A chance for deregulation can spur consolidation within the space and boost company performance, the executive notes
AS GUESTS trickled into the annual Sun Valley Conference in Idaho on Tuesday (Jul 9), the talk of the resort centred around the merger agreement between Paramount Global and Skydance Media.
Warner Bros chief executive officer (CEO) David Zaslav said the deal – which will see the parent of Paramount Pictures and CBS change hands after decades of control by the Redstone family – will lead to a healthier industry.
Skydance Media CEO David Ellison – who is the son of Oracle co-founder Larry Ellison – and RedBird Capital Partners are investing more than US$8 billion to take over the company.
“Getting (Paramount) in solid hands and having them funded – it’s a great company and a great heritage, so I think that’s good for the industry,” Zaslav said.
Others guests who have arrived so far at the Idaho resort include Walt Disney CEO Bob Iger, investors Ken Langone and Peter Thiel, and investment company KKR’s co-founder Henry Kravis.
The annual event, sponsored by the investment bank Allen & Company, attracts influential names in the media, sports and technology worlds for several days of talks in the mountains.
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Zaslav, whose company is frequently the subject of merger speculation, said the entertainment industry needs to do more deals.
“Over the next year or two you’re going to see some real consolidation, whether that happens with companies buying each other or going after streaming together,” he noted.
One such coming together is Venu Sports – a joint venture between Disney, Warner Bros and Fox – that will put games from three media giants together in one place, the chief executive said.
When asked about the upcoming presidential election, Zaslav said it mattered less to him which party wins, as long as the next president was friendly to businesses.
“We just need an opportunity for deregulation, so companies can consolidate and do what we need to to be even better,” he added.
Warner Bros, the parent of CNN, HBO and other channels, has been trying to renew its media rights with the National Basketball Association.
Zaslav indicated that he may exercise a provision in Warner Bros’ contract that allows the company to match offers by rival bidders.
“The NBA is still in process, so we’ll see how it plays out,” he reported. BLOOMBERG
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