Warner Bros. Discovery employees have been eagerly awaiting the decision on who will be their new overlords. Recent developments have shifted the sentiment within the company, with most employees now leaning towards supporting Netflix’s acquisition of Warner Bros.’s studios and HBO Max rather than being taken over entirely by Paramount Skydance, according to sources at Variety.
The debate between Paramount and Netflix seems to have settled within Warner Bros. Discovery, with a majority now in favor of Netflix. Despite initial skepticism about how Netflix’s ownership might impact the film studio and theatrical distribution, Netflix co-CEOs Ted Sarandos and Greg Peters have managed to win over many employees with their assurances and vision for the combined company.
As negotiations continue, Warner Bros. Discovery is still in play, with a seven-day window open for talks with Paramount Skydance to see if they will raise their bid over the $30/share offer from Netflix. The board is currently recommending investors vote for the Netflix deal at the upcoming special meeting of shareholders.
The initial sentiment inside Warner Bros. was divided based on where employees thought they might fare better strategically under Paramount or Netflix ownership. However, concerns about Paramount’s cost-cutting and layoffs following their previous acquisitions have led many to believe that Netflix might be the more stable option.
Netflix’s proposed acquisition would see networks like CNN, TBS, HGTV, and Food Network spun off into Discovery Global, a new company led by CEO Gunnar Wiedenfels. This separation is seen as a preferable option compared to Paramount’s plan to buy Warner Bros. Discovery in its entirety.
The recent turmoil at CBS News under Paramount’s leadership, coupled with concerns about the future of the Warner Bros. lot and studios, have further swayed employees towards supporting Netflix’s bid. The familiarity and acceptance of the possibility of becoming part of Netflix have grown among Warner Bros. Discovery employees in recent months.
While uncertainties remain about the future of the company, employees are hopeful for a resolution soon. The main focus for now is to continue working diligently until a decision is made. As one Warner Bros. studio employee put it, “People just want this to be over.”
As the M&A event looms, Warner Bros. Discovery employees are keeping a close eye on developments and are eager for the uncertainty to be resolved. The transition to new ownership will be a significant change for the company, but employees are hopeful that the new overlords will keep the current Warner Bros. structure intact for a smoother transition and successful future.
