David Zaslav is definitely going back to Cali after Discovery closes its $43 billion merger with WarnerMedia next year, reigniting speculation that the Warner Bros. Discovery CEO could tap long-time CNN chief Jeff Zucker as his No. 2.

Zaslav has been expected to move to California for months (he bought former Paramount Pictures chieftain Bob Evans’s Beverly Hills mansion in 2020) but confirmed that re-domiciling yesterday (Nov. 10) at the Paley Center for Media’s virtual International Summit. 

“I’m moving to California,” Zaslav said. “That’s where I’m going to live. CNN is a big asset. I’ll come back here and spend time with the CNN asset, but I’m going to live in L.A. with an office on the lot. I’ll be at the lot, I’ll be at Culver City, because that’s where content is made. This is a content company. The better our content is, the better chance we have of being to the leading media company in the world.” 

With Zaslav in California, that could mean he will need a seasoned executive to steer the company’s New York operations: both Discovery and WarnerMedia have offices in the city. That refueled speculation that Zucker, a longtime friend of Zaslav’s dating back to their days at NBC, could be that man.

According to The Information, Zucker is a likely candidate for Zaslav’s No. 2  because the two have been friends for decades. Prior to becoming Discovery CEO in 2006, Zaslav spent about 18 years at NBC, and counts Zucker as a close friend. Zucker had his ups and downs at the broadcaster but ultimately became CEO of NBCUniversal in 2007. He left NBC in 2012 and joined CNN in 2013.

Zucker’s CNN tenure has been spotty. He was criticized early on for the 24-hour news network’s apparent obsession with an intestinally troubled cruise ship (dubbed the “poop ship”) in 2013 and a year later attracted ire over its incessant coverage of the disappearance of Malaysia Airlines Flight MH370. But he also boosted CNN’s ratings with its coverage of the ascent and decline of former President Donald Trump.  

In February, Zucker said he would resign at the end of 2021 when his contract is set to expire, but postponed that departure to the first half of next year, when the Discovery deal is expected to close.

Talk of Zucker’s potential return is nothing new, as pundits have been predicting it ever since the Discovery-WarnerMedia deal was unveiled in May. 

Zaslav praised Zucker at the Paley Center conference, but demurred when interviewer Ken Auletta asked whether the CNN executive would find a home within the new structure.

“We’re specifically not speaking to any individuals,” Zaslav said at the Paley conference. “I’ve worked with and for Jeff at NBC. He’s a superb executive. I like Jeff a lot, we’re good friends."

Zaslav added that he has taken the same stance in other Discovery deals with Scripps Networks and Eurosport, adding that the ultimate goal is to find the best people both inside and outside the company to build Warner Bros. Discovery into the best content company it can be. 

"We’ll do that after we close,” he said.

While Zaslav may or may not persuade Zucker to stay, at the Paley Center conference he seemed more intent on repairing bridges with filmmakers burned by the previous management’s (i.e. AT&T) plan last year to make the entire Warner Bros. 2021 movie slate available in theaters and through its HBO Max service on the same day.  

Warner Bros.’s day-and-date strategy, implemented by most likely outgoing WarnerMedia CEO Jason Kilar, may have boosted HBO Max subscriber rolls but it forced some prominent filmmakers to rethink their relationship with the studio. Kilar insisted at the time that the experiment was only to last one year, and Zaslav spent a lot of time at the Paley conference driving that point home, professing his love for motion pictures viewed outside the home.

“Most of the people in this business got into the business because one day they went to the theater with their Mom or their Dad or their friends, the lights went out, there were no phones, they looked up at the screen and something magical happened,” Zaslav said. “And that’s where movie stars are made. Motion pictures, as you take them around the world, can change the culture. And most of the conversations that I’m having with talent, they want to be on the big screen still.”

Zaslav also stressed that as a pure-play content provider, Warner Bros. Discovery won't be distracted by other product lines.

“We’re not going to be saying, should we be spending money on broadband? Should we be spending money on more cloud? Should we be spending money on more infrastructure or our retail reach?” Zaslav said. “Almost every other media company we’ll be competing with, they’re in other businesses. This is a pure-play storytelling company.” 

Speaking of money, Zaslav said Warner Bros. Discovery is likely to boost its content spend in the future, but  added that the big money being shelled out by other streamers to poach showrunners and content developers from other outlets may be coming to a close.     

“There are a lot of players out there that are writing checks and that will get rationalized over the next couple of years, there will be less,” Zaslav said, adding that in the not too distant future, content creators will migrate to companies that give them the biggest exposure.

Netflix made headlines over the past few years by luring traditional TV and film producers like Shonda Rhimes, Ryan Murphy  and others with huge contracts to create shows for the streamer. Other services like Amazon Prime Video and Apple TV followed suit. 

While Zaslav said that money is important, it won’t be the biggest differentiator, invoking the names of past Warner Bros. chiefs like Steve Ross, Robert Daly and Barry Meyer, who were known for nurturing content creators during their tenures. 

“Ultimately, if that‘s the case, there will be a lot of great talent that will choose to come to Warner Bros. as a place where they will be supported,” Zaslav said.

Discovery Communications has named former German satellite executive Gunnar Wiedenfels as its new chief financial officer, replacing Andrew Warren, who had earlier said he would be leaving the company.

Wiedenfels will officially become CFO on April 1, from ProSiebenSat.1 Media SE, where he currently holds the same position. He will report to Discovery CEO David Zaslav and be based at Discovery’s office in New York. Warren, who had earlier planned to leave by the end of the year, has agreed to extend his contract term to ensure a smooth transition of CFO responsibilities. 

“As Discovery continues our rapid growth and diversification in new content and digital platforms around the world, Gunnar is the ideal choice to lead our global finance strategy and organization,” Zaslav said in a statement. “Gunnar's international expertise aligns perfectly with our future growth profile, and he brings to Discovery an exceptional reputation in the capital markets, strong industry expertise and a strategic focus to help unlock the value of our investments.  He will be a terrific addition to our management team and I look forward to working with him to continue to drive Discovery’s global business.”

As CFO, Wiedenfels will be responsible for leading the global financial functions and strategies of the company and will direct all accounting, treasury, budgeting, tax and investor relations activities. He will serve as a member of Discovery’s executive team and contribute to the overall strategic direction of the company.

Wiedenfels has spent the past seven years in various management roles at Munich-based ProSiebenSat.1 Media SE. As CFO of the German satellite giant, he is credited with leading the outperformance of analyst expectations and the European Broadcasting peer group, with approximately 20% valuation premium over relevant peers; 39% total shareholder return in 2015, well above benchmarks; and inclusion of ProSiebenSat.1 into the DAX index of 30 largest listed companies in Germany by market cap, as of March 2016. Since 2012, ProSiebenSat.1 has tripled revenues from its Digital and Adjacent activities to 1 billion euros in the twelve months ending June 2016. Prior to his CFO role, he served as Deputy CFO from 2014 to 2015 and served as Chief Group Controller from 2013 to 2015. Before this, he worked as a management consultant and engagement manager at McKinsey & Company.

Discovery Communications was assisted in the search process by Howard Fischer Associates, International.

Discovery Communications said in a Securities and Exchange Commission filing late Wednesday that it has committed between $40 million and $60 million to an employee buyout aimed at streamlining the programmer and helping it invest in growth initiatives including digital services and content creation.

According to the 8-K filing, typically made by public companies to announce a material event, Discovery identified eligible employees on April 28 and began offering the buyouts on May 4. 

The company did not disclose how many employees are eligible for the buyout and how many it believes will take the offers.

Discovery said it also is looking for other ways to cut costs and is investigating “additional actions to reduce its non-personnel costs and is continuing to evaluate its overall expense base,” according to the filing.

In a memo from Discovery CEO David Zaslav that was included in the public filing, the moves are part of the company's ongoing strategic planning.

"We are rolling out a number of cost-reduction efforts around the globe, including budget reallocations, technical and process improvements and organizational restructuring, all designed to make us more competitive and ensure that we can continue investing in new growth initiatives," Zaslav said in the memo. "The specifics of the cost reductions will vary across business units and geographies, and you will hear from your leadership team in the days and weeks ahead.  There is no doubt that change can be challenging and difficult. This process, while necessary, is a tough one. In making these hard decisions, we are positioning Discovery for many more years of success and growth as a leader in global entertainment."

Zaslav continued that the ultimate goal is to maximize the company’s linear TV business while pursuing other opportunities like launching new digital and mobile offerings.

"The cost savings will allow us to continue growing our business while investing in four key areas: more loved content; sports and other valuable IP; digital services and OTT products; and international growth markets,” Zaslav said in the memo.

The announcement comes the day before Discovery is scheduled to release its first quarter earnings results. In the memo Zaslav said the company is strong – ad sales and international affiliate revenue are healthy.

“All the success we have today has been driven by embracing change and disrupting ourselves in the past,” he said in the memo. “I am confident that these cost-reduction measures will both amplify our current strengths and pave a clear path for continued growth and success… Together, we can embrace the change, lead the disruption and continue transforming our company for the future.”

Liberty media chairman and cable legend John Malone will receive the 2016 Steven J. Ross Humanitarian Award at the UJA-Federation of New York’s Leadership Awards Dinner on May 18.

The award honors the late former chairman of Time Warner Inc., a visionary and renowned philanthropist. Ross built a family funeral parlor business into Warner Communications, and created Time Warner Inc. in 1989 after merging with Time Inc. He died of prostate cancer in 1992. 

The event will take place at Cipriani in Manhattan and will feature a conversation between Malone and PBS newsman Charlie Rose and feature a performance by Country star Kenny Chesney.  

Among those attending will be IAC chairman Barry Diller, Liberty Global CEO Mike Fries, Liberty Media CEO Greg Maffei, Comcast chairman and CEO Brian Roberts, Discovery Communications CEO David Zaslav, LionTree Advisors CEO Aryeh Bourkoff, and many other industry and media leaders.

In a year dominated by its landmark (and pending) $67 billion acquisition of Time Warner Cable, Comcast chairman and CEO Brian Roberts received a 5.1% raise in total 2014 compensation, receiving $32.96 million, according to a proxy statement filed with the Securities and Exchange Commission.

According to the proxy, Roberts’ base salary was up slightly to $2.857 million (from  $2.8 million a year earlier) and he received $5.25 million and $5.35 million in stock and option awards, respectively, about even with the prior year.  The big difference was in deferred compensation earnings – about $6.5 million in 2014, up from $5.06 million in the prior year.

Comcast announced its purchase of Time Warner Cable in February 2014 and has been going through the federal regulatory approval process ever since. The company has said it hopes to have a decision by the middle of this year.

While Robert’s compensation was up from the prior year (and it was dwarfed by the $156 million Discovery Communications CEO David Zaslav received in 2014), he wasn’t the highest paid member of the Comcast management team. That distinction went to NBC Universal CEO Steve Burke, who hauled in $33.9 million in total compensation in 2014, up 9% from the $31.1 million he earned in the prior year.   

Vice chairman and chief financial officer Michael Angelakis – who announced earlier this year that he will step down as CFO to head up a new investment fund backed by the company, received $18.87 million in total compensation in 2014, down 2% from the $19.2 million he received in 2013.

Comcast Cable CEO Neil Smit received $23.1 million in total comp in 2014, a 32% raise from the $17.4 million he received in 2013. Smit, who helped steer Comcast’s cable operations to one of its best years ever in 2014, saw his stock awards double to $7.6 million in 2014 from $3.7 million in 2013.

Executive vice president David Cohen, who has spearheaded  Comcast’s efforts in Washington through the FCC approval process, saw his 2014 compensation dip 3% to $13.5 million from $13.96 million in 2013.

Discovery Communications CEO David Zaslav said Tuesday that reports that his company has held preliminary talks with 21st Century Fox Executives concerning a possible takeover were untrue, but added that the programmer has a long-standing relationship with 21st Century Fox.

Zaslav called into Fox Business Network’s Opening Bell with Maria Bartiromo, to congratulate the host on her one-year anniversary with the channel. Zaslav was once head of NBC Cable, which included CNBC, the network that launched Bartiromo’s career, and the two have been close friends for years.

After a few congratulatory exchanges, Bartiromo entered reporter’s mode, asking the Discovery chief is there was any truth to the speculation that the two companies held takeover talks. She added that 21st Century Fox had denied the reports.

“There is no truth to those rumors,” Zaslav said, adding that Discovery has worked together with Fox executives Rupert Murdoch, Lachlan Murdoch and Chase Carey on several projects in the past. and has a strong relationship wth the company.

“We looked at making some acquisitions together in Germany and Italy with Sky Italia and Sky Deutschland. We have a great relationship and we admire Fox,” Zaslav said.

The Australian Financial Review reported late Sunday that Fox executives met with Discovery officials about two weeks ago to discuss a possible takeover of the company, adding that talks were in the very early stages. Although some analysts have said a deal would make sense, a Fox spokesman called the AFR report “categorically untrue.”

Discovery Communications CEO David Zaslav threw down the TV Everywhere gauntlet Thursday, telling operators that if they don’t step up their efforts to broaden the release of the authenticated service, all programmers will be forced to go direct to consumers on their own.

“If TV Everywhere doesn’t develop as it should,” Zaslav said, “it will require all of us to go direct to consumer because the cable guys just aren’t getting it done.”

If it went through on its threat, Discovery wouldn't be the first programmer to test the OTT waters. Home Box Office is expected to launch a standalone OTT service later this year as is its premium network rival Showtime. Already CBS has launched its CBS All-Access OTT offering, which allows customers to access certain broadcast and library contet for $5.99 per month. Earlier this month Dish Network launched its SlingTV OTT product,  with similar offerings from Sony (PlayStation Vue) and Verizon expected later in the year.

Discovery’s OTT ambitions have been played outside of the U.S., with its Dplay app in Norway that aggregates channels and sells them to consumers without the need for a pay TV subscription.

Zaslav said about 250,000 customers in Europe are paying $8 per month for the OTT service, but that it is mostly driven mostly by sports. For example, he added that Discovery has seen spikes in demand for its app around big events like the Australian Open, where Discovery’s Eurosport networks offer preliminary matches. That “Superfan” demand could also translate into the kids’ market in Latin America.

Zaslav said he expects the market in the U.S. to be stable, adding that the programmers has secured significant increases in affiliate fees in recent carriage negotiations and TV Everywhere could help drive further monetization of its content.

“The best way to do that would be broad deployment of TV Everywhere in the U.S., taking the Superfan groups and going after them,” Zaslav said. “I think the ecosystem in the U.S. stays as is for the next three years. The question is, what happens four, five or six years from now? Will there be a peel off of the direct to consumer business?”

Operators have been criticized soundly over the years about the sluggish rollout of TV Everywhere, which allows pay TV customers to watch select programming anywhere at any time on any device. But the rollout of the service has been slow as operators have complained that securing rights from programmers has been increasingly difficult.

Recently, the Cable Telecommunications Association for Marketing (CTAM) has stepped up its initiative to get the word out on TV Everywhere.

While programmers and operators alike have blamed each other for TV Everywhere’s missed opportunites, Zaslav seems to be the first major programmer to appear to pull out the OTT card if it can’t reach TV Everywhere deals.

Discovery was one of the last cable programmers to embrace online video – while others were placing full episodes of their shows online for free, Discovery believed free short-form clips on the Internet that drove viewers to the linear channels was more appropriate.