Netflix has agreed to acquire Warner Bros Discovery for a staggering $72 billion, a deal that has significant implications for shareholders and executives alike. This acquisition, announced recently, will see shares bought at more than three times their value from just a few months ago, marking a significant financial turnaround for investors.
Among the notable beneficiaries of this transaction is David Zaslav, Warner Bros Discovery’s chief executive, who stands to become a billionaire if the deal is finalized. Zaslav, 65, has long been recognized as one of the highest-paid executives in the media industry, earning over $200 million in salary and bonuses during his nearly two-decade tenure leading the New York-based studio. Despite facing criticism for his substantial compensation amid layoffs and strategic missteps, Zaslav’s financial outlook has dramatically improved with this acquisition.
A significant portion of Zaslav’s compensation package has struggled to meet expectations in recent years. Options awarded to him around the merger between Discovery and Warner Bros were valued at over $200 million according to the company’s 2021 proxy statement. However, due to the decline in the company’s share price, they became effectively worthless.
Earlier this year, a controversial renegotiation of Zaslav’s contract provided him with a new opportunity to significantly enhance his wealth. This new contract offered him stock options valued at more than $400 million based on the acquisition price. These changes position him to potentially join the ranks of a select few non-founder executives who have reached a net worth of $1 billion.
Despite this, Zaslav’s pay package faced scrutiny. At approximately $10 per share, Warner Bros stock had plummeted over 60 percent from its peak in April 2022. In 2024, Warner Bros disclosed that Zaslav received nearly $52 million in compensation, including over $21 million in cash performance awards for the sixth consecutive year.
In June, a majority of shareholders voted against Zaslav’s compensation package during an advisory vote at the company’s annual meeting. Former ESPN president John Skipper commented on the situation, stating, “It’s a shockingly high salary for what cannot be viewed as a successful performance to date.” In response, Warner Bros’ board emphasized its commitment to considering shareholder feedback.
Just a week after the advisory vote, Zaslav extended his contract through to 2030, receiving approximately 23 million stock options. The previous options he held had an exercise price exceeding $35 per share, which meant they would only be valuable if the stock price were to more than triple. The new options, however, came with a significantly lower exercise price of just over $10, making them easier to redeem with a modest increase in value.
A key condition attached to the new options was the requirement for Zaslav to navigate Warner Bros through a planned spinoff of its cable networks before the end of 2026. In early November, the terms of his contract were amended to clarify that his options would remain valid in the event of a change-in-control transaction, providing additional security as the company explored options for its future.
Following a series of enhanced bids, Netflix announced that it had secured the acquisition of Warner Bros’ streaming studio assets. Once finalized, Zaslav’s options linked to his 2025 employment agreement will be valued at around $420 million, based on Netflix’s cash-and-stock offer price of $27.75 per share. Beyond these equity awards, Zaslav also holds Warner Bros stock valued at approximately $186 million at the offering price.
The acquisition is expected to trigger change-in-control provisions that will accelerate the vesting of nearly 6.3 million performance-restricted stock units previously awarded to Zaslav, valued at over $170 million at the acquisition price. The anticipated closure of Netflix’s acquisition of Warner Bros’ streaming arm is expected to take place within the next 12 to 18 months, with a thorough antitrust review likely to attract considerable attention.
