Employees at Warner Bros. Discovery (WBD) are navigating a shifting landscape as speculation mounts over a potential acquisition. Initial apprehensions have largely given way to growing support for a deal with Netflix, which is seen as a more favorable option compared to a complete takeover by Paramount Skydance. This transformation in sentiment comes after months of deliberation regarding how either deal would impact both the legacy of Warner Bros. and the current workforce.
While there is now a broad consensus among WBD staff favoring a Netflix acquisition, skepticism persists. Many employees remain wary about how Netflix’s ownership would reshape the film studio and influence theatrical distribution practices, despite Netflix’s promises of upholding a 45-day window for theatrical releases.
The co-CEOs of Netflix, Ted Sarandos and Greg Peters, have made significant strides in winning over employees through their commitment to maintaining the Warner Bros. brand and preserving jobs within the studio. They have engaged directly with staff during visits, assuring them that key elements of the Warner Bros. operation would remain intact under their stewardship. This has fostered a sense of acceptance among employees regarding the potential transition.
As WBD continues to evaluate its options, a seven-day window for discussions with Paramount Skydance has been opened, granted with Netflix’s consent. Paramount’s latest proposal stands at $30 per share, raising anticipation as the WBD board is still advising shareholders to support the Netflix deal in an upcoming meeting. This negotiation period with Paramount is set to conclude soon, just ahead of the earnings call scheduled for late February.
Previously, sentiments among WBD employees were mixed, often depending on department-specific perspectives. Some divisions initially expressed preference for a Paramount acquisition, believing that HBO Max could outshine Paramount+. However, the cost-cutting measures and layoffs enacted by Paramount since their acquisition of other entities have shifted perceptions. Concern over potential job losses has prompted staff to reconsider the implications of a merger with Paramount.
In contrast, Netflix’s plan reassures employees that the core of the Warner Bros. operations will be sustained, with many seeing the deal as a means to preserve the unique culture that has defined Warner Bros., even through various ownership changes over recent years.
A pivotal moment occurred when Sarandos and Peters conducted a town hall meeting at the Warner Bros. lot. Their direct engagement about the company’s intentions significantly shifted employee attitudes, making many feel more optimistic about the acquisition.
Not all divisions are on board with Netflix. Some fear that if Netflix gains control, they may eventually prioritize its streaming platform in a way that could jeopardize traditional theatrical releases. Furthermore, concerns surrounding Paramount’s editorial direction, particularly its management of CBS News under Bari Weiss and its political affiliations, have raised alarm among employees at WBD, who value journalistic integrity.
As negotiations continue, the strong attachment employees have to the Warner Bros. legacy becomes evident. Observers recall the aftermath of Disney’s acquisition of 21st Century Fox, which altered the landscape of Hollywood significantly. Many WBD staffers are understandably apprehensive, fearing that a similar fate could befall their studio if Paramount succeeds in its bid.
Despite the uncertainties, Warner Bros. leaders emphasize the need for Netflix to maintain the existing structure and culture during a potential transition. There is a palpable desire among employees for clarity regarding the future of the company, as many express fatigue over the ongoing speculation and negotiations.
For now, the focus remains on conducting business as usual, while the larger question of ownership looms overhead. A sense of restlessness is palpable among employees, with many eager for a resolution to the ongoing uncertainty surrounding their futures at Warner Bros. Discovery.
