Inside Warner Bros. Discovery, Mood Shifts in Favor of Netflix Deal vs. Paramount Takeover

Variety

by Todd Spangler

February 19, 2026

AI-Generated Deep Dive Summary

Inside Warner Bros. Discovery (WBD), employee sentiment has shifted significantly toward supporting Netflix’s proposed acquisition of Warner Bros.’s studios and HBO Max over Paramount Skydance’s potential takeover. After months of consideration, most WBD staffers now believe that Netflix would be a preferable partner compared to David Ellison’s cost-cutting and layoffs, which have been a concern since the Paramount deal closed in August. While Netflix has assured employees that the Warner Bros. brand and its business operations will remain intact under their ownership, there is still skepticism about how this partnership might impact theatrical distribution. The change in attitude reflects concerns about Paramount’s history of aggressive cost-cutting, including $6 billion in projected synergies from a merger with WBD, which would likely lead to significant job cuts. In contrast, Netflix has offered assurances about maintaining the Warner Bros. identity and retaining key assets like the Burbank lot. However, not everyone is fully rooting for Netflix’s deal; some remain uncertain about how the streaming giant’s ownership will affect the company’s future. The article highlights the internal divisions within WBD during the early stages of the acquisition discussions, with different departments initially leaning toward either Paramount or Netflix based on their strategic priorities. For instance, HBO employees were concerned about losing the edge HBO Max currently holds over Paramount+, while others feared Netflix’s focus on streaming might alter production strategies. Despite these concerns, many WBD staffers have come to see Netflix as a more stable and preferable option compared to the risks associated with Paramount’s ownership. The company is still in play, however, as negotiations with Paramount continue until February 23, with Netflix having four days to counteroffer if Paramount raises its bid.

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Originally published on Variety on 2/19/2026