An American flag flies at Warner Bros. Studio in Burbank, California, on Sept. 12, 2025.
Mario Tama | Getty Pictures
The Warner Bros. Discovery board might have enriched its shareholders Thursday when it selected Paramount Skydance‘s acquisition supply over Netflix‘s, but it surely additionally terrified numerous its staff.
Whereas a few of these folks personal WBD shares and will want the financials of Paramount’s $31-per-share bid to Netflix’s $27.75-per-share supply, CNBC spoke to 10 WBD staff in quite a lot of completely different roles on the firm. All 10, who requested to not be named for worry of potential backlash, expressed issues about potential job losses and questions of who would finally run their divisions if Paramount and WBD are ultimately merged.
“It is truthful to say individuals are deflated by the information,” stated one long-term WBD government.
Nonetheless, a WBD-Paramount merger “isn’t a achieved deal,” as California Legal professional Common Rob Bonta stated yesterday.
The transaction should achieve regulatory approval each within the U.S. and in Europe. WBD CEO David Zaslav acknowledged at an all-hands assembly Friday that the deal should still be blocked and expressed sympathy for these experiencing a way of whiplash going from Netflix to Paramount, in response to folks acquainted with the matter.
“The deal might not shut. If it does not shut, we get $7 billion, and we get again to work,” Zaslav stated, in response to leaked audio supplied to Enterprise Insider.
Nonetheless, a number of WBD staff instructed CNBC they wished Netflix had acquired WBD, citing a number of components.
Whereas Paramount and WBD each have core competencies in information, sports activities, theatrical movie and streaming TV, Netflix has far much less overlap. Netflix co-CEO Ted Sarandos repeatedly stated he deliberate to depart the WBD enterprise alone, holding its theatrical enterprise separate from Netflix whereas additionally holding HBO Max as a separate, impartial streaming service for the foreseeable future.
Netflix additionally wasn’t buying WBD’s linear cable enterprise with its bid. Workers at CNN, TNT Sports activities and the outdated Discovery networks would have remained of their jobs to forge a path as a standalone publicly traded firm.
Now, WBD staff are gazing doubtlessly large job cuts. Paramount executives have beforehand acknowledged they plan to chop $6 billion by eliminating “duplicative operations” on “again workplace, finance, company, authorized, expertise, infrastructure, et cetera,” in response to Chief Technique Officer Andy Gordon. Each WBD and Paramount have already gone by means of hundreds of job cuts lately.
There are additionally questions on tradition and management. Whereas Mark Thompson at the moment runs CNN, Bari Weiss is the editor-in-chief at CBS Information and will plausibly have CNN added to her purview.
The Wall Avenue Journal reported in December that Paramount CEO David Ellison promised President Donald Trump he’d make sweeping modifications at CNN if he gained management of the community. Three CNN staff who spoke with CNBC stated there’s rampant worry amongst their colleagues about Weiss making dramatic modifications to the cable community’s anchors and tone.
“Regardless of all of the hypothesis you have learn throughout this course of, I might counsel that you do not soar to conclusions concerning the future till we all know extra,” Thompson wrote in a memo to staff Thursday.
CNN media reporter Brian Stelter famous CNN “is a extremely worthwhile enterprise, and it might be silly for any proprietor to place that in danger.”
On the leisure aspect, WBD staff worry there could also be too many proverbial cooks within the kitchen, which might bathroom down creativity and innovation for each movie and TV.
One WBD government famous that Paramount’s President Jeff Shell, Chair of Direct to Shopper Cindy Holland and Chair of TV George Cheeks are all used to being senior leaders of their organizations. Shell was CEO of NBCUniversal. Cheeks was co-CEO of Paramount earlier than it merged with Skydance. Holland was a high government at Netflix, the place she labored for 18 years.
How that blend meshes with WBD’s leisure management group is an open query and will result in tradition clashes.
TNT Sports activities is run by Luis Silberwasser and has largely steered WBD towards youthful audiences with its programming choices and investments, together with Bleacher Report and Home of Highlights. CBS Sports activities, in the meantime, is pushed by the demographics of those that watch CBS and has traditionally catered to an older viewers. This might result in tradition conflict, or the divisions might mesh properly as complementary property.
Whereas Silberwasser must work with CBS Sports activities President David Berson on worker duplications, like each different division, there’s some purpose for optimism within the sports activities division, as a result of WBD and CBS have labored collectively for a few years producing March Insanity, the NCAA males’s basketball match. That is given the items some extent of familiarity with one another.
WBD additionally misplaced NBA rights final season. Combining with CBS’ strong portfolio of sports activities rights, together with the NFL and the Masters, makes WBD a significant participant once more in sports activities, even when it is as a subsidiary of CBS.
One different repeated concern amongst staff is the $64 billion in debt coming as a part of the $111 billion enterprise worth for the deal. A number of staff stated servicing massive debt hundreds has hindered WBD lately, they usually feared this might result in extra of the identical. Two staff famous there’s consolation being part of a large firm like Netflix, with a market capitalization of greater than $400 billion. Paramount Skydance’s market valuation is simply $15 billion.
