On November 13, 2025, Warner Bros. Discovery announced a major revision to the employment agreement of its Chief Executive Officer, David Zaslav, as the company undertakes a comprehensive strategic review. The amended contract extends Zaslav’s tenure through December 2030 in the event of a “change in control,” such as a sale or significant restructuring of the business. However, the amendment includes a key exclusion: if the company divests major assets such as its Discovery Global division, the extension would not apply. This nuanced approach signals Warner Bros. Discovery’s attempt to balance leadership continuity with flexibility as it explores various strategic options in a rapidly evolving media landscape.
The announcement came as the company confirmed it is soliciting non-binding bids for parts of its business, with a submission deadline set for November 20. The news sent Warner Bros. Discovery’s shares up by approximately 3 percent, reflecting investor optimism that the strategic review could unlock value or lead to transformative changes. According to sources familiar with the matter, the company is open to a range of possibilities—from divestitures and spin-offs to a full-scale merger or sale—though no final decisions have been made.
The original contract signed by Zaslav earlier in 2025 had outlined a timeline through 2026, tied closely to Warner Bros. Discovery’s previously announced intent to separate or restructure certain segments of its operations. The new amendment broadens the definition of what qualifies as a “change in control,” including a sale of the entire company or significant equity transactions, provided they are completed before the end of 2026. In such a scenario, Zaslav would remain at the helm until at least the end of 2030, providing what the board describes as “executive stability” during what could be a turbulent transformation period.
Notably, the exemption for asset-level sales such as the disposal of Discovery Global signals that the board sees such transactions as more tactical rather than transformational. Should the company pursue these limited divestitures, Zaslav’s contract would remain on its original terms. This caveat is seen by analysts as an effort to retain negotiating leverage in potential discussions while also reassuring stakeholders that executive incentives are not being misaligned with shareholder value.
The move comes at a pivotal time for Warner Bros. Discovery and the media industry more broadly. With traditional broadcasting under pressure and streaming platforms facing subscriber saturation and rising costs, major players are being forced to reassess their portfolios and business models. Warner Bros. Discovery, which was created through the 2022 merger of WarnerMedia and Discovery Inc., has faced a complex integration process and persistent questions about its long-term strategy. The company’s current financial posture includes high debt loads and the need to increase profitability in its streaming divisions, which compete with giants like Netflix, Disney+, and Amazon Prime Video.
By modifying Zaslav’s contract, the board is not just signaling confidence in his leadership, but also aligning his interests with a broader spectrum of potential outcomes. It suggests that the company is not simply exploring cosmetic changes but is preparing for substantial restructuring or even ownership changes. Analysts have noted that such contractual amendments are often early indicators of major strategic shifts in industries where leadership retention during transitions is critical to maintaining stability and executing complex deals.
For investors, the adjustment provides a layer of predictability in what could otherwise be a volatile period. It also positions Zaslav, a seasoned executive with deep industry relationships, as the face of Warner Bros. Discovery’s next chapter—whether that chapter involves break-ups, asset sales, or a sweeping transformation of its operational footprint. His continued leadership could help guide the company through potential negotiations and reassure external stakeholders during uncertain times.
From a governance standpoint, the amendment exemplifies how companies undergoing strategic reviews must balance flexibility with leadership continuity. It also illustrates how employment contracts can be used as instruments of strategic signaling, demonstrating to the market that Warner Bros. Discovery is serious about considering all options and willing to make bold changes at the top to pursue value creation.
As the November 20 deadline for non-binding bids approaches, industry observers will be closely watching for signs of potential suitors or partners. Whether Warner Bros. Discovery opts for targeted divestitures or a more comprehensive overhaul, the revised contract for its CEO makes one thing clear: the company is preparing for significant change, and it intends to do so with stable leadership in place.
