This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2023/11/15/magazine/david-zaslav-warner-media-discovery.html
The article has changed 8 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| How David Zaslav Blew Up Hollywood | How David Zaslav Blew Up Hollywood |
| (about 20 hours later) | |
| It was April 2022, and David Zaslav had just closed the deal of a lifetime. From the helm of his relatively small and unglamorous cable company, Discovery, he had taken control of a sprawling entertainment conglomerate that included perhaps the most storied movie studio on the planet, Warner Brothers. The longtime New Yorker had always loved movies, and against the advice of several media peers, he had moved to Hollywood and taken over Jack Warner’s historic office, hauling the old mogul’s desk out of storage and topping it off with an old-time handset telephone. So far things were going great. He had met all the stars and players, was widely feted as the next in line to save the eternally struggling industry and was well into the process of renovating a landmark house in Beverly Hills. “You’re the dog that caught the bus,” the billionaire octogenarian cable pioneer John Malone, one of Discovery’s largest shareholders, told him. All he needed to do now was pay back the $56 billion in debt that he piled onto the new company to make the deal happen. | It was April 2022, and David Zaslav had just closed the deal of a lifetime. From the helm of his relatively small and unglamorous cable company, Discovery, he had taken control of a sprawling entertainment conglomerate that included perhaps the most storied movie studio on the planet, Warner Brothers. The longtime New Yorker had always loved movies, and against the advice of several media peers, he had moved to Hollywood and taken over Jack Warner’s historic office, hauling the old mogul’s desk out of storage and topping it off with an old-time handset telephone. So far things were going great. He had met all the stars and players, was widely feted as the next in line to save the eternally struggling industry and was well into the process of renovating a landmark house in Beverly Hills. “You’re the dog that caught the bus,” the billionaire octogenarian cable pioneer John Malone, one of Discovery’s largest shareholders, told him. All he needed to do now was pay back the $56 billion in debt that he piled onto the new company to make the deal happen. |
| Money is never just lying around Hollywood, and the town was still reeling from the pandemic. But that was OK. Zaslav had set a “synergy target” — cost cuts, essentially — of $3 billion in the next two years, and now, with the clock ticking, he got to work. To help, he had brought along his chief financial officer from Discovery, an amateur pilot and former McKinsey consultant named Gunnar Wiedenfels. As spring turned to summer, they laid off hundreds of workers, shuttered or reorganized divisions and suspended or canceled hundreds of millions of dollars’ worth of programming. Anything we don’t think is awesome, Zaslav told executives, stop production right now. Turn the cameras off. | Money is never just lying around Hollywood, and the town was still reeling from the pandemic. But that was OK. Zaslav had set a “synergy target” — cost cuts, essentially — of $3 billion in the next two years, and now, with the clock ticking, he got to work. To help, he had brought along his chief financial officer from Discovery, an amateur pilot and former McKinsey consultant named Gunnar Wiedenfels. As spring turned to summer, they laid off hundreds of workers, shuttered or reorganized divisions and suspended or canceled hundreds of millions of dollars’ worth of programming. Anything we don’t think is awesome, Zaslav told executives, stop production right now. Turn the cameras off. |
| Cuts are the norm after a merger, but Zaslav and Wiedenfels were pushing things hard, and in sometimes unorthodox directions. By shelving several nearly completed projects — including the animated, direct-to-streaming movie “Scoob!: Holiday Haunt,” and the fourth season of the postapocalyptic TV series “Snowpiercer” — they saved millions in postproduction and marketing costs, as well as residuals down the line, and they locked in hefty tax breaks up front. Like so much of what happened in Hollywood, all this was reminiscent of a Hollywood production — in this case, the beloved 1967 Mel Brooks comedy “The Producers.” There, the producers, Max Bialystock and Leopold Bloom, realized that under the right circumstances, a producer could make more money with a flop than a hit. For Zaslav and Wiedenfels, the money would come from making sure that no one would get to see the shows in the first place. | Cuts are the norm after a merger, but Zaslav and Wiedenfels were pushing things hard, and in sometimes unorthodox directions. By shelving several nearly completed projects — including the animated, direct-to-streaming movie “Scoob!: Holiday Haunt,” and the fourth season of the postapocalyptic TV series “Snowpiercer” — they saved millions in postproduction and marketing costs, as well as residuals down the line, and they locked in hefty tax breaks up front. Like so much of what happened in Hollywood, all this was reminiscent of a Hollywood production — in this case, the beloved 1967 Mel Brooks comedy “The Producers.” There, the producers, Max Bialystock and Leopold Bloom, realized that under the right circumstances, a producer could make more money with a flop than a hit. For Zaslav and Wiedenfels, the money would come from making sure that no one would get to see the shows in the first place. |