Higher Offer, Rising Anxiety
The board of Warner Bros. Discovery moved forward with a $31-per-share proposal from Paramount Skydance, favoring it over Netflix’s $27.75 bid. While the richer offer may benefit shareholders, it has unsettled employees across the company.
CNBC spoke with 10 WBD staff members in various divisions who expressed concern about potential layoffs, leadership reshuffling and integration risks if the transaction proceeds. All requested anonymity due to fear of professional repercussions.
WBD CEO David Zaslav acknowledged during an internal meeting that the agreement still faces regulatory review in the United States and Europe. He reportedly noted that if the deal collapses, WBD would receive a $7 billion breakup fee.
Why Some Preferred Netflix
Several employees indicated they would have favored a transaction with Netflix. They cited fewer business overlaps and assurances from co-CEO Ted Sarandos that WBD units would retain operational independence.
Netflix had not planned to acquire WBD’s linear cable assets, potentially preserving existing structures at outlets such as CNN, TNT Sports and legacy Discovery networks as standalone businesses.
In contrast, Paramount executives have signaled plans to eliminate up to $6 billion in costs by reducing duplicative operations across corporate functions. Both companies have already implemented significant workforce reductions in recent years.
Leadership and Cultural Questions
Questions are also emerging about leadership dynamics if the companies combine. Paramount CEO David Ellison and senior executives including Jeff Shell, Cindy Holland and George Cheeks would need to align with WBD’s existing leadership team.
Within CNN, uncertainty is heightened by speculation over editorial direction. Current CEO Mark Thompson urged employees not to jump to conclusions, while outside observers note the network remains profitable.
On the sports side, potential overlap between TNT Sports under Luis Silberwasser and CBS Sports led by David Berson raises questions about staffing and programming strategy. The units already collaborate on NCAA basketball coverage, offering some operational familiarity.
Debt Burden and Financial Structure
Employees also raised concerns about the deal’s financial profile. The proposed transaction carries an enterprise value of $111 billion, including roughly $64 billion in debt.
Some staff members pointed to WBD’s recent experience servicing large debt obligations as a constraint on investment flexibility. Comparisons were drawn to Netflix’s market capitalization of over $400 billion, which provides greater balance sheet resilience than Paramount Skydance’s roughly $15 billion valuation.
Although regulatory approval remains pending, the announcement has already triggered reflection across WBD divisions about structure, culture and long-term strategy under potential new ownership.
