WB Gives Employees New Information on Netflix Deal/Discovery Split in Global Town Hall Meeting

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Warner Bros. Discovery is getting closer to splitting into two companies, with Netflix set to buy its studio and streaming services. Today, company leaders held a meeting to explain the decision to employees, outline the next steps, and discuss how the media industry has changed so dramatically in just the past two years.

This Town Hall meeting signaled a major shift for the company, which was once a powerful force in Hollywood’s golden age.

A Deal Born Out of Intense Corporate Pressure

Company leaders say the last few months have been incredibly busy with new ideas, reviews, and a lot of talk within the industry. At the beginning of the year, Warner Bros. Discovery intended to divide into two separate companies: one focused on news, sports, and traditional TV channels, and the other centered around the Warner Bros. film and television studios, HBO, and the Max streaming platform.

The original plan fell apart when outside companies, like Paramount, started expressing interest in buying Warner Bros. Discovery as a whole. Because of this interest, the company’s board had a legal duty to explore all possibilities, which led to a competitive bidding war.

After careful consideration, Warner Bros. Discovery decided that selling the studio and its streaming service to Netflix would be the best way to maximize returns for shareholders and ensure a secure future for the talented people who create content for Warner Bros., HBO, and WB Television.

Why Netflix Was Chosen

Executives emphasized several strategic reasons for choosing Netflix:

  • Netflix has an unparalleled reach, delivering Warner Bros. movies and shows to more people in more countries than any other streaming service.

  • Warner Bros. continues to produce a huge amount of high-quality TV and film content, and Netflix is the leading global distributor with the best streaming technology.

  • This deal benefits both companies: Netflix gets to stream popular franchises like Harry Potter, Game of Thrones, Lord of the Rings, and DC content, and Warner Bros. Discovery gets a major platform to showcase those same brands.

  • Netflix is now fully committed to releasing movies in theaters, and they have built a complete studio system to support this effort.

  • HBO Max isn’t going anywhere. People who subscribe to it will continue to have access, and options are being added for those who also use Netflix.

In short, leadership believes the union creates a content powerhouse unrivaled in scale.

Discovery Global Moves Forward as a New Company

The original corporate split is still happening — just in a modified form.

Sometime next year, Warner Bros. Discovery plans to create a separate company called Discovery Global that will house its news, sports, and international channels, including CNN. Gunnar Wiedenfels, a long-time financial leader at the company, will lead the new business, and about half of Warner Bros. Discovery’s current employees are expected to join it.

Leaders at Discovery Global say the company is in a good financial position, has a lot of valuable content, and has plenty of room to grow and evolve.

Regulatory Reality: This Will Take Time

The deal is expected to take between 12 and 18 months to finalize, but company leaders admit it could take even longer. Since both Netflix and Warner Bros. Discovery operate globally, the merger needs approval from regulators in many different countries.

I’m following this Netflix deal closely, and it’s amazing to me that they’ve agreed to pay a $5.8 billion fee if regulators stop it from going through. It really shows how sure they are that everything will be approved!

Until approvals are complete:

  • Warner Bros. Discovery and Netflix must operate as completely separate companies.

  • Employees must avoid discussing strategy with Netflix personnel.

  • No public statements, social media posts, or commentary may occur without legal approval.

  • All business units must continue operating as usual.

Essentially, nothing changes day-to-day until regulators give the green light.

What It Means for Employees

Leadership was clear:

  • No immediate job changes.

  • No reporting-line adjustments.

  • No alterations to compensation or benefits at this stage.

We’re finishing up a list of frequently asked questions to clarify concerns about fairness, how things will work, and the steps for the transition. We’ll also be holding more all-hands meetings next week so you can ask questions directly.

Leaders recognized the news is creating a range of feelings – hopefulness, worry, exhaustion, and doubt. However, they emphasized that Warner Bros. Discovery plans to maintain open communication and focus on keeping things steady throughout the ongoing changes.

A New Era for a Legendary Studio

The recent company-wide meeting ended on a positive note, with leaders thanking employees for successfully navigating a period of significant change in the industry. They emphasized that the company’s strong creative and operational teams were key to attracting multiple potential buyers.

If the deal goes through, Warner Bros. and HBO will combine their content with Netflix’s worldwide reach, creating a potentially powerful force in the entertainment industry.

If regulators intervene, Warner Bros. Discovery will proceed with its existing plans, now backed by a significant amount of financial security.

As a film buff, I’m realizing Hollywood is entering completely uncharted territory. That recent Warner Bros. Discovery and Netflix meeting really drove home the point: the next year and a half is going to be pivotal. It feels like the future of these two giants – and honestly, the entire industry – is being decided right now. It’s a really exciting, but also a bit nerve-wracking, time to be watching things unfold.

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2025-12-06 01:00