Warner Bros. Discovery CEO David Zaslav Disposes of Holdings in Skydance Merger

Executive Summary

On October 8, 2026, Warner Bros. Discovery, Inc. ($WBD) filed a Form 4 on behalf of Chief Executive Officer and President David Zaslav, reflecting the disposition and cancellation of all equity awards and common stock holdings effective October 6, 2026.

Transaction Mechanics & Context

• Merger Consideration: Pursuant to the Agreement and Plan of Merger with Skydance Corporation (f/k/a Paramount Skydance Corporation) and Prince Sub Inc., WBD became a wholly owned subsidiary of Skydance.
• Common Shares: 1,500,000 shares of Series A Common Stock held directly were converted into the right to receive cash consideration of approximately $31.0167 per share ($46.52M aggregate value).
• RSUs & PRSUs: 1,570,772 vested RSUs were cancelled and converted into cash at the merger price. Unvested PRSUs (3,737,162 shares and an additional 425,986 performance-earned shares) were converted into contingent Converted Cash Awards subject to continued vesting.
• Stock Options: All underwater options (exercise prices of $35.65 to $43.33) were cancelled for no consideration. In-the-money options (17,935,634 options at $10.16 exercise price and 3,052,734 options at $28.51 exercise price) were cancelled and converted into the right to receive cash equal to the spread over the merger consideration.

Significance & Market Impact

• Trading Significance: Low. The transactions represent standard merger-related conversions and cash-outs rather than discretionary open-market sales. WBD ceases to trade as an independent public entity.