Warner Bros. Discovery Considers Netflix Deal Over Paramount Acquisition
Warner Bros. Discovery (WBD) employees are increasingly leaning toward a potential acquisition by Netflix rather than Paramount Skydance. This shift in sentiment follows months of deliberation about the impact of either deal on the legacy of Warner Bros. and its workforce.
Employee Sentiment on Acquisition Deals
Recent discussions have highlighted a significant change among WBD staff. They now generally view Netflix as the more favorable suitor. This consensus emerged after weighing the implications of each potential acquisition.
Concerns About Paramount
- Many employees expressed worries about the implications of a Paramount acquisition.
- Insights from insiders suggest that some areas, like HBO, initially thought Paramount was a better fit.
- Paramount has a history of aggressive cost-cutting, which raises concerns about job security among WBD staff.
Netflix’s Influence and Promises
Netflix co-CEOs Ted Sarandos and Greg Peters have been active in addressing WBD employees. Their presence on the Warner Bros. lot on December 17 reassured many staffers regarding their vision for the combined entity.
Negotiation Timeline
The negotiations between Warner Bros. Discovery and Paramount have a set timeline. WBD’s board is currently advising shareholders to support the Netflix deal, with a special meeting scheduled for March 20. Meanwhile, the negotiating window with Paramount will close on February 23, and WBD’s Q4 2025 earnings call is set for February 26.
Potential Changes Under Netflix
- Under Netflix’s ownership, WBD’s film and television studios are expected to maintain their current branding.
- Netflix has committed to keeping Warner Bros. operations largely intact, while Paramount has proposed significant cost synergies that could lead to job cuts.
WBD’s Corporate Culture and Future Prospects
Employees are wary of the disruptions caused by mergers. Many have been with Warner Bros. long enough to witness several ownership changes and are protective of its culture. They are concerned about what a Paramount acquisition could mean for the iconic studio and its operations.
Sarandos has also noted the potential for Netflix to engage more deeply with theatrical releases. His prior comments suggesting that cinemas were “outdated” may be reassessed as Netflix eyes acquisitions that include a significant theatrical component.
Conclusion: A Call for Resolution
Amid ongoing negotiations and speculation, WBD employees are eager for clarity. The mood across the board is one of urgency—staff simply want the uncertainty surrounding the potential acquisition to come to a resolution.
