Hollywood
Netflix emerges as staff favourite in Warner Bros sale battle
Employees back Netflix deal amid fears of deeper cuts under Paramount
CALIFORNIA: Employees at Warner Bros Discovery have largely settled an internal debate over who they would rather work for if the company is sold; increasingly, the answer is Netflix.
After months of uncertainty, a growing consensus has emerged inside the company that a Netflix acquisition of Warner Bros.’ studios and HBO Max would be preferable to being absorbed wholesale by Paramount Skydance, according to media reports.
Early sentiment following Netflix’s deal announcement in December was split, with staff weighing how different divisions might fare under competing owners. Some at HBO believed Paramount plus would struggle to compete with HBO Max, while studio executives worried Netflix would hollow out theatrical filmmaking in favour of streaming-first output.
That balance has since shifted. Paramount Skydance’s aggressive cost-cutting and layoffs since closing its deal in August have sharpened concerns about job losses should Warner Bros Discovery follow the same path. Paramount has forecast more than $6 billion in cost synergies from a merger: a figure widely read inside WBD as code for deep redundancies.
By contrast, Netflix has pledged to preserve the Warner Bros. studio, lot and television operations. Assurances from Netflix co-chief executives Ted Sarandos and Greg Peters, including commitments to theatrical releases with a 45-day exhibition window, have softened scepticism across the Burbank lot.
A turning point came on 17 December, when Sarandos and Peters visited the Warner Bros studio campus alongside WBD chief David Zaslav, addressing employees in a town hall. Executives say the direct engagement helped stabilise nerves after years of corporate upheaval following Discovery’s 2022 merger with WarnerMedia.
The sale process remains live. Warner Bros Discovery has opened a seven-day window for talks with Paramount Skydance, led by David Ellison, to improve its $30-a-share offer. Netflix retains the right to counterbid should a higher proposal emerge.
For now, the WBD board continues to recommend that shareholders back the Netflix deal ahead of a 20 March vote. With earnings due days later, staff remain watchful, but many now believe Netflix represents the least disruptive future for one of Hollywood’s oldest studios.
Hollywood
WBD sets April 23 vote on $110bn Paramount Skydance merger
Investor approval key step, but regulators loom over mega media deal
NEW YORK: Warner Bros. Discovery has set April 23 as the date for shareholders to vote on its proposed $110 billion merger with Paramount Skydance, marking a crucial step in one of the biggest media deals in recent years.
The all-cash transaction offers WBD shareholders $31 per share, a hefty 147 per cent premium to its unaffected stock price, signalling strong intent to push the deal across the finish line. The company’s board has unanimously backed the merger and is urging investors to vote in favour.
Even if shareholders give the green light, the deal is far from done. Regulators in the United States and Europe are expected to scrutinise the merger closely, weighing concerns around competition and potential price impacts for consumers.
To keep investors on side, WBD has built in a safety net. If the deal is not completed by September 30, shareholders will receive a quarterly “ticking fee” of $0.25 per share until closure.
The proposed merger would significantly reshape the media landscape, combining the assets of Warner Bros. Discovery with those linked to Paramount Global and Skydance Media. It would also cement the growing influence of David Ellison, who has been steering Skydance’s aggressive expansion strategy.
“The WBD Board has been guided by the singular principle of securing a transaction that maximises the value of our iconic assets and delivers as much certainty as possible to our shareholders,” said Warner Bros. Discovery board chair Samuel A. Di Piazza Jr.. “This historic transaction will expand consumer choice and create new opportunities for creative talent.”
Warner Bros. Discovery chief executive officer David Zaslav added that the company is working closely with its counterpart to close the deal and unlock value for stakeholders.
With investor backing likely but regulatory hurdles ahead, the proposed merger is shaping up to be a defining moment for the global entertainment industry, where scale, content and competition are increasingly intertwined.
