Org Chart From Hell: ‘Too Many Tentacles for One Octopus’
A Paramount-WBD merger would mean 20 chiefs, two streaming platforms, one shrinking C-suite — and an executive bloodletting
I wrote about Netflix’s animation buying spree, mapped the three budget buckets running TV now, laid out 5 burning Qs about Dana Walden’s plans in her new Disney role and interviewed Fox TV Network president Michael Thorn. I’m lesley.goldberg@theankler.com
3 TV studio chiefs
4 film studio chiefs
2 streaming service chiefs
9 CEOs
12 chairs
This is a recipe for Executive Soup. And it’s what could happen if Paramount’s David Ellison is successful in his bid to acquire the entirety of Warner Bros. Discovery.
On Monday, Paramount officially upped its offer to $31 a share as it sets its sights on the iconic studio, streaming service HBO Max and other assets — Ellison is making a full-court press to unseat Netflix and Ted Sarandos for David Zaslav’s empire. The WBD board of directors said in a statement Tuesday that Paramount’s offer could lead to a “company superior proposal” as it continues to mull Ellison’s latest offer. But the Netflix merger agreement, for the time being anyway, remains in effect as the board “is not withdrawing or modifying its recommendation” that only WBD’s film and TV studios and HBO Max be sold to the streaming giant. All this is to say that a bidding war for WBD is likely around the corner as the ball now bounces into Netflix’s court.
While there would be some redundancies with a Netflix deal for the prime parts of WBD — specifically with such back-end departments as business affairs, human resources and finance — a Paramount-WBD combination would unite two massive film studios, multiple television studios and two huge streaming platforms. More layoffs, in large numbers, would be inevitable, and the leadership ranks would also have to thin. As one source said of the situation facing creative executives at Paramount and WBD, “too many tentacles for one octopus.”
Exacerbating the situation is that Zaslav has 16 direct reports — not excessive but considered the high end for a media CEO, even of a large company. What’s more, of those 16, nine of them carry titles with CEO in front of them. Between WBD and Paramount, there are a dozen people with chair or chairman titles. “Too many chefs” is a cliche for a reason.
Given the rapidly shrinking state of the film and television industry amid multiple rounds of mergers and acquisitions, there are also fewer places left to go for top C-suite dwellers. Taken together with the battle for WBD, it’s creating an unusual moment where seasoned and respected executives could soon find themselves forced into positions they don’t want as they vie for survival, let alone advancement.
In today’s column, I’ll tell you:
Who’s safe, who’s at risk and who might keep their role but lose their influence
Why direct access to the CEO is the real currency — and who stands to get cut off
Casey Bloys’ unique status (and history of going head to head with Paramount chair of DTC Cindy Holland): “HBO needs to be left alone”
Insiders’ predictions for the hierarchy and streaming structure as Paramount+ and HBO Max would come under one roof
How golden handcuffs (including stock packages and vesting schedules) keep executives in their seats — even as the chairs disappear
Lessons for a merged Paramount–WBD from the Disney-Fox deal
How Holland’s Netflix legacy would reverb through the new structure at an expanded Paramount