On Tuesday, investor Ross Gerber criticized Warner Bros. Discovery WBD CEO David Zaslav for his leadership, calling the company's planned split into two independent public companies a result of a series of poor decisions.
What Happened: Chris Bakke, the founder of Laskie, which was later acquired by Twitter, took to X and said that McKinsey & Company had been paid millions for advising WBD on various decisions over the years.
He said McKinsey billed WBD $55 million in 2022 to advise on a potential merger with Discovery. Then, from 2022 to 2025, McKinsey charged $37 million for advising on rebranding HBO Max multiple times (first to Max, then back to HBO Max).
In 2025, McKinsey charged an additional $63 million to recommend that Warner Bros. and Discovery be separated again, Bakke stated.
Gerber, CEO and co-founder of Gerber Kawasaki, shared Bakke's post, criticizing Zaslav's leadership and stating that Zaslav has "created zero value" despite being one of the highest-paid CEOs.
“Zaslav is one of the highest paid CEOs in the world. He's created zero value with this garbage merger and one bad decision after the next,” he posted.
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Why It's Important: On Monday, Warner Bros. Discovery Inc. announced plans to split into two separate companies by mid-2026, one focusing on streaming and studios and the other on global television networks.
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CEO Zaslav is set to oversee the streaming and studios division, which encompasses HBO, Warner Bros. film properties and Max. Meanwhile, CFO Gunnar Wiedenfels will take on the role of CEO for the newly formed network unit, which includes CNN, Discovery and TNT Sports.
Last month, Warner Bros. Discovery released its fiscal first-quarter earnings, reporting a 9% year-over-year revenue decline (excluding foreign exchange) to $8.98 billion, falling short of the $9.60 billion analyst estimate.
The company also closed the quarter with 122.3 million subscribers, up from 99.6 million a year earlier.
Streaming revenue rose 9% ex-FX to $2.66 billion, while distribution revenue climbed 8% ex-FX, driven by a 23% jump in subscribers fueled by Max's global expansion and new domestic distribution agreements.
According to Benzinga's Edge Stock Rankings, WBD continues to show solid price momentum in the short and long term, though it trends downward over the medium term. More detailed performance data is available here.
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