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David Ellison’s $18 Billion Question

On an investor call Monday, Ellison promised that ParaBros would generate $18 billion in EBITDA in 2026—including at least $6 billion in dreaded “synergies.” But good luck growing revenue while cutting the combined company to the bone.

David Ellison
David Ellison indicated that PSKY–WBD would reach a debt-to-EBITDA ratio of 3x within three years of closing the deal, with investment-grade credit rating “metrics” by then. We’ll see. Photo: Kyle Grillot/Bloomberg/Getty Images
William D. Cohan
March 4, 2026

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Now the hard work truly begins for David Ellison, whose $111 billion, $31-per-share deal for Warner Bros. Discovery—struck at nearly a 5x multiple on the company’s predeal stock price—will pocket C.E.O. David Zaslav some $800 million in proceeds, a reward for running one of the greatest M&A processes in recent history. Ellison has already promised at least $6 billion in synergies, widely understood to mean thousands of layoffs across the combined company, as he vows to transform ParaBros into a veritable Netflix rival.