An American flag flies at Warner Bros. Studio in Burbank, California, on Sept. 12, 2025.
Mario Tama | Getty Pictures
The Warner Bros. Discovery board could have enriched its shareholders Thursday when it selected Paramount Skydance‘s acquisition supply over Netflix‘s, however it additionally terrified quite a lot of its workers.
Whereas a few of these individuals personal WBD shares and will choose the financials of Paramount’s $31-per-share bid to Netflix’s $27.75-per-share supply, CNBC spoke to 10 WBD workers in quite a lot of totally different roles on the firm. All 10, who requested to not be named for worry of potential backlash, expressed considerations about potential job losses and questions of who would finally run their divisions if Paramount and WBD are ultimately merged.
“It is honest to say individuals are deflated by the information,” mentioned one long-term WBD government.
Nonetheless, a WBD-Paramount merger “shouldn’t be a finished deal,” as California Legal professional Basic Rob Bonta mentioned yesterday.
The transaction should acquire 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 line with individuals aware of the matter.
“The deal could not shut. If it does not shut, we get $7 billion, and we get again to work,” Zaslav mentioned, in line with leaked audio offered to Enterprise Insider.
Nonetheless, a number of WBD workers advised CNBC they wished Netflix had acquired WBD, citing a number of elements.
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 mentioned he deliberate to go away the WBD enterprise alone, conserving its theatrical enterprise separate from Netflix whereas additionally conserving HBO Max as a separate, unbiased 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 Workers at CNN, TNT Sports activities and the outdated Discovery networks would have remained of their jobs to forge a path as a standalone publicly traded firm.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 workers are observing doubtlessly huge 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 line with Chief Technique Officer Andy Gordon. Each WBD and Paramount have already gone by means of 1000’s of job cuts in recent times.
There are additionally questions on tradition and management. Whereas Mark Thompson at present runs CNN, Bari Weiss is the editor-in-chief at CBS Information and will plausibly have CNN added to her purview.
The Wall Road Journal reported in December that Paramount CEO David Ellison promised President Donald Trump he’d make sweeping adjustments at CNN if he gained management of the community. Three CNN workers who spoke with CNBC mentioned there’s rampant worry amongst their colleagues about Weiss making dramatic adjustments 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 leap to conclusions in regards to the future till we all know extra,” Thompson wrote in a memo to workers 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 facet, WBD workers worry there could also be too many proverbial cooks within the kitchen, which may lavatory down creativity and innovation for each movie and TV.
One WBD government famous that Paramount’s President Jeff Shell, Chair of Direct to Client 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 may 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 motive 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 event. That is given the models 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 serious participant once more in sports activities, even when it is as a subsidiary of CBS.
One different repeated concern amongst workers is the $64 billion in debt coming as a part of the $111 billion enterprise worth for the deal. A number of workers mentioned servicing massive debt masses has hindered WBD in recent times, they usually feared this might result in extra of the identical. Two workers 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.
