Warner Bros. Discovery co-ad presidents Ryan Gould and Robert Voltaggio looked to send a message of stability to advertisers on Wednesday as the company’s pending $110 billion merger with Paramount loomed large over its upfront presentation.
“Good partnership is what drives us here at Warner Bros. Discovery, so before we go on, we do want to address the Ellison — I mean, the elephant in the room,” Voltaggio told advertisers, in reference to the company’s impending new leader. ““Listen, we don’t deflect, that’s not who we are. Everyone here knows that there’s change ahead and that there’s change in our company, but there’s change across the entire media industry. We’re well aware that your business is changing too, but we believe that success is a team effort. So our best in class organization, the team and people you know and trust so well, are here to help guide you through this transition.”
Gould emphasized that the company has “been through change and challenges before.”
“We don’t flinch. We meet the moment and continue to push forward in your best interest,” he said.
Voltaggio added that WBD’s brands, content, stories, worlds and moments would remain “fully available” to advertisers “at scale.”
“We encourage you to continue to lean in and engage with us in new and creative ways, because we are on a remarkable run and that cultural relevance is hard to ignore across the board,” Gould added.
The pair’s remarks come as WBD shareholders approved the deal last month, though it remains subject to regulatory approval.
Regulators in the U.K. are gearing up to review the deal, with its deadline for public comments closing last month. Paramount has also asked the FCC to approve its foreign investment in the deal, with those investors accounting for 49.5% of the equity of the combined company. Additionally, executives said that there are “no statutory impediments” remaining after the Department of Justice’s Hart-Scott-Rodino review period expired, though the regulator can still get involved at anytime in the process.
In addition to federal and international regulators, a group of U.S. state attorneys general led by California’s Rob Bonta are also reviewing the deal and weighing whether to take legal action against the merger. Bonta previously told TheWrap that “red flags are everywhere when you have a merger of this type” and that the states are prepared to “act timely,” but declined to provide a specific timeline for when a decision could be made.
In a recent regulatory filing, Paramount disclosed that it has received subpoenas, or civil investigative demands, from various state AGs that focus on the investigation by the Department of Justice and the competitive effects of the merger. It does not disclose which or how many state AGs sent subpoenas.
“We have been cooperating with the state attorneys general in responding to their requests,” Paramount said.
If the deal is not closed by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.
