Warner Bros boss set for $984 million windfall from Paramount sale
James Warrington
The CEO of Warner Bros. will make more than $700 million ($984 million) in revenue following the sale of the Hollywood studio to rival Paramount.
David Zaslav, one of America’s highest-paid film executives, will receive $517 million in unvested Warner Bros. shares, $34.2 million in cash severance pay, $44 million in benefits and $116 million for shares already vested.
He may also be entitled to more than $335 million in tax refunds; However, this figure is expected to decrease over time and drop to zero if the acquisition is not completed by 2027, according to the application to the regulator.
Warner Bros. said the figures were estimates and “could differ materially” from the final outcome once the deal closes.
Media mogul, 66, is being handsomely rewarded after overseeing the takeover of a blockbuster company Harry Potter Paramount’s studio.
Warner Bros. had initially agreed to an $83 billion acquisition of Netflix before it was canceled by a superior offer from Paramount, controlled by Oracle billionaire Larry Ellison.
The price tag marks a significant premium for Warner Bros., which has struggled to find direction after being formed in a $43 billion merger in 2021.
Shares of the debt-laden studio giant were trading for just $10 a year ago, and the purchase put it at $31 per share.
Still, Zaslav’s huge pay packet risks sparking outrage among Hollywood’s rank-and-file workers.
The industry is bracing for sweeping layoffs after Paramount announced it expects to make $6 billion in cost savings.
Netflix, which received a US$2.8 billion cut fee from Paramount, argued that those cuts would likely be closer to US$16 billion as the new company eliminates duplication across its studio and news businesses.
Zaslav, who sold Warner Bros shares worth more than $114 million this month, had previously been the target of criticism for the salary awards he received.
While he took home almost US$250 million in 2021 thanks to stock awards tied to the company’s founding, shareholders voted against a US$52 million pay package for 2024.
The filings show payouts to other executives, including Warner Bros publishing boss JB Perrette and chief financial officer Gunnar Wiedenfels, who stand to earn US$142 million and US$120 million respectively.
Warner Bros. will also pay approximately US$200 million in fees to its main advisors Allen & Co and JPMorgan.
Shareholders are expected to vote on the Paramount takeover at a special meeting next month.
The company has not yet released regular annual salary and bonus figures, which will come in addition to these merger payments and will be put to a vote by investors at this summer’s annual meeting.
Away from the takeover saga, Warner Bros. had a successful year at the box office. The studio broke a record at the Oscars last weekend with 11 awards, including for films. One war after another, sinners And Weaponry.
Telegraph, London
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