“I’m gutted,” says one studio executive. He’s not alone: All of Hollywood is anxious to hear which of the three media corporations will change the landscape of movies and television forever. On Thursday, November 20, Paramount, Netflix and Comcast submitted a bid to acquire Warner Bros. Discovery – the company that owns the Warner Bros. film studio, HBO and cable networks CNN, TNT and Discovery.
Each of the three companies comes into the potential deal with different ambitions. Paramount Skydance, which was created in an $8 billion merger David Allison Earlier this year, Warner Bros. wanted to acquire all of Discovery’s assets, while streaming giant Netflix and Comcast—NBCUniversal’s corporate parent—have only made bids for the company’s studios and streaming business.
Swallowing another legacy Hollywood studio, just a few years after Disney bought 21st Century Fox’s entertainment assets in a $71.3 billion deal, feels like another seismic shift for an industry that has recently faced setback after setback. “It’s not just Warner Bros. Theatrical, which is a mainstream studio and all the IP that goes with it, but it’s also HBO — both of these are storied houses,” the executive says. “I don’t see any way where those things are (still) present with any of these buyers, because I think they just fit into existing structures, even if it wasn’t their intention to go in.”
Employees working under the Warner Bros. Discovery umbrella — which is still recovering from WarnerMedia’s merger with Discovery, which happened less than four years ago — are grappling with concerns about more turmoil and jobs that will potentially be eliminated. “There are a lot of permanent employees at Warner Bros. who have been there for 20 and 30 years,” says a Warner Bros. insider. “This isn’t their first rodeo. But I think, ultimately, everyone recognizes that this is different – that integration is happening, and it’s a little scary.”
Insiders beyond those employed by Warner are also concerned about what the sale will mean for the larger infrastructure of the industry — and right now, there are more questions than answers. “Warner Bros. has been in the red-hot center as this constant target, and I just wonder when has a Warner Bros. merger ever gone well?” Says a top filmmaker. “It’s hard to even know who is the best. It feels like it shouldn’t be.”
Many believe the best buyer will be one that retains Warner Bros.’ The theatrical output is most intact, though it’s unclear which of the three bidders fits that bill. “We don’t know yet,” says a top manager. “It all depends on what (they) are going to allow output-wise.” In August, Warner Bros. Discovery said its goal was to produce 12–14 theatrical releases per year. If the new buyer cuts that production by half or more, it would be devastating to the market. “(Warner) is breaking through the generations this year” – thanks to hits like sinner, weapon, And one fight after another—“And you don’t want to lose him,” says the manager. “You don’t (want) to lose leaders who are willing to take on directors and stars who want to go after the original idea.”
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