What Yellowstone creator's surprise Paramount exit means for Hollywood

• NBCUniversal's Donna Langley beats Warner Bros. Discovery's David Zaslav at the negotiating table, signing renowned writer-director Taylor Sheridan.
• Sheridan's $1 billion overall deal marks him as the most valuable hitmaker in Hollywood.
• NBCUniversal is ready to compete with Paramount to buy Warner Bros. Discovery.

"How the West Was Won" or "How the Zaz Lost to Taylor"?

Apologies for that; it had to be said.

What's pertinent is that Taylor Sheridan's TV properties are some of the highest-ticket ones in town, and they just changed hands at a turbulent time, with Warner Bros. Discovery (WBD) up for sale.

Here's how Sheridan's departure will affect corporate negotiations and your favorite shows.

The wrestling match over his future was primarily between Comcast's (CMCSA) NBCUniversal chairwoman Donna Langley and Warner Bros. Discovery CEO David Zaslav. Both head honchos flew down to Sheridan's famous Texas ranch, but Langley came out on top. The consequences may shift the balance of power in today's volatile Hollywood.

To that end, the fact that Zaslav's WBD was fielding acquisition offers from Sheridan's current employer played a part in the negotiation.

"Incidentally, Paramount is trying to buy Warner Bros. Discovery, a parallel drama that was not lost on Sheridan," TheWrap reports.

Ultimately, it was a combination of Warner Bros.' delicate situation, excellent personal negotiations by Langley, and upheaval at Paramount that led to NBC landing its "big fish."

Personally, I can't think of a worse time to lose out on this big of an asset. NBC and Langley clearly aren't afraid to be aggressive while others snooze.

NBC, Langley ink Taylor Sheridan to biggest deal in TV

There simply isn't another hitmaker like Taylor Sheridan in Hollywood right now. With multiple ongoing hits and spinoffs, as well as an Oscar-winning film studio, Sheridan stands alone.

Maybe that's why he's set to become Hollywood's first $1 billion dollar hitmaker.

The shape of the "Sheridan Deal":

• Sheridan’s new NBCUniversal overall encompasses both film and television, with the film portion starting in 2026 and the TV portion following in 2029.
  Source: Collider​
• All current Sheridan TV properties ("Yellowstone," "Landman," "Mayor of Kingstown," "Tulsa King," "Special Ops: Lionness," and "Yellowstone" spinoffs "1923" and "1883") will remain with Paramount until the end of his contract.
  Source: USA Today​
• Longtime collaborator David Glasser and his 101 Studios film and television outfit will also move to NBCUniversal when their Paramount obligations end​.
  Source: IMDB
• Reports cite corporate upheaval at Paramount in the wake of the Skydance acquisition as a factor influencing Sheridan’s decision.
  Source: The Independent

That last bit of reporting on corporate upheaval is critical, as the decision-makers at Paramount have now largely turned over from those with whom Sheridan initially worked (plus Ellison wanted Sheridan to cut down his budgets — not a great look).

Crucially, the NBC deal only applies to Sheridan productions going forward, after 2026 (film projects) and 2027 (TV). Paramount will retain the ability to stream Sherdian's archive of already completed work.

"After Sheridan’s move to NBCUniversal, Paramount will continue to own the library of his existing shows, as well as any subsequent seasons or spin-offs from those series," per reporting by the LA Times.

Langley, the longtime film division lead, took full control over NBCU's television properties in 2024. Renowned for her ability to manage close relationships with visionaries including directors Christopher Nolan and Stephen Spielberg, she was quick to circle Sheridan as the key add to reinvent NBC's television business.

"Donna Langley flew down twice to Sheridan’s base in Weatherford, Texas, over the past several months to build a relationship with the superstar television showrunner," a deal insider told The Wrap. "[Langley] offered him to be the Big Fish. She earned that relationship. She focused on what was important."

The deal was broadly applauded by industry insiders. "If you ask me, Donna Langley at NBCUniversal has just made the deal of the year, maybe of the past five years," writes film producer Erik Felderhof on LinkedIn. "She is also sending a clear message to the rest of Hollywood: 'We are (still) here and we are playing to win.'"

Keep in mind, this proactive move comes on the heels of NBC having wrested NBA broadcasting rights away from Warner Bros.' TNT this year in a $76 billion, 11-year deal. With NBC's war drums beating at full fettle, the next question is how this new Sheridan megadeal will impact the ongoing bidding war over Warner Bros. Discovery.

NBCUniversal a serious contender to purchase Warner Bros. Discovery

With Paramount Skydance Corporation (PSKY) CEO David Ellison reportedly "not backing down" on his bid, and with NBC showing some teeth having landed Sheridan, the bidding war over Warner Bros. Discovery continues to heat up. And now Netflix has indicated it's going to enter the fray.

Here's why they are all interested: Warner Bros. Discovery has the best prestige TV business in town in HBO Max (HBO? Just Max? HBO Go?). I kid, but NBC faces a similar dilemma with its imminent MSNBC/MS NOW name-change debacle.

WBD also has a booming reality TV business in Discovery, and the film/TV studio assets to support all of its creative assets. Take a look at WBD's most valuable pieces of intellectual property:

Warner Bros. Discovery's most valuable TV/film franchises:

• Wizarding World(Harry Potter & related): $34.5 billion
• Batman: $29.6 billion
• Looney Tunes: $15.9 billion
• DC Extended Universe(DCEU): $7.63 billion
• Superman: $6.9 billion
  Source: Diverse Tech Geek

Now let's compare that to the same statistics from Comcast/NBCUniversal before adding the Sheridanverse:

Comcast/NBCUniversal's most valuable TV/film franchises:

• "Despicable Me"/Minions: $11.3 billion
• "Jurassic Park": $8.82 billion
• "Fast & Furious" franchise: $7.91 billion
• "Shrek": $6.3 billion
• "Madagascar": $2.59 billion
  Source: Diverse Tech Geek

Clearly, adding Sheridan's more adult content diversifies NBCU's content. It also shows that they are in the 'everything' game, not just the kiddy stuff, hence the interest in WBD.

Get this: While that $1 billion/8-year overall might seem steep, "Yellowstone" alone has generated $2.9 billion in sales for Paramount, according to Bloomberg. With Sheridan's various other franchises and with plans to continue to expand the "Yellowstone" universe, his profits could easily top his Paramount numbers going forward.

Related: Warner Bros. bidding war erupts as bad news hits subscribers

Sheridan's deal should be compared to Ellison's forking over $1.5 billion for "South Park" or his eye-popping $7.7 billion for the UFC. It's meant to.

Langley's courting — and landing — of Sheridan reflects a change in attitude for NBC. It's a signal that she has Comcast's blessing to take the big swings and compete with Ellison's deep, deep pockets.

Until now, the reporting (including mine) has been that Paramount is the serious suitor. but don't be surprised if the "Sheridan Deal" is the inflection point for NBC to enter the race in earnest.

Related: NBC changes beloved NBA broadcast format, confuses fans