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.
