This communication has been sent to everyone at WBD Friday morning:
Team,
The Board of Directors of Warner Bros. Discovery (WBD) approved a transaction under which Warner Bros. will be acquired by Netflix, subject to
regulatory approvals and closing conditions, including the completion of the separation of Discovery Global from WBD.
As part of the structure, the Global Networks business will form a new standalone company, Discovery Global, with Gunnar Wiedenfels to serve as
CEO once the new company separates from WBD, now expected to be completed in Q3 2026.
This decision reflects the realities of an industry undergoing generational change - in how stories are financed, produced, distributed, and discovered -
and recognizes the strong, transformed company we are today, the significant value we have created, and the resilience and attractiveness that now
position us in a rapidly evolving marketplace. Over the past several months, the Board evaluated a full set of strategic paths. Their conclusion is that this
structure - Warner Bros. joining Netflix, and Discovery Global becoming a focused standalone company - provides the strongest long-term foundation
for both sets of businesses.
As outlined in the announcement, the proposed combination of Warner Bros. and Netflix reflects complementary strengths, more choice and value for
consumers, a stronger entertainment industry, increased opportunity for creative talent, and long-term value creation for shareholders.
I know this announcement creates many questions about what’s next. For some, it brings clarity about direction. For others, it raises questions about
what this means for their teams and their work. All of those reactions are understandable. A transaction of this nature naturally creates uncertainty, and
not all answers will be available immediately. Some will be clarified in the coming days and weeks; others depend on regulatory processes and on work
that cannot begin until separation or closing.
People across WBD have navigated extraordinary change over the last three years, while building a company with real creative, journalistic, and
commercial strength. That deserves to be acknowledged plainly.
What we can say now, based on the direction set out today, is that this structure provides a clearer path forward for Warner Bros. within Netflix, and for
Discovery Global as a standalone company. For both, the goal is to position their creative work, talent, and brands to navigate a market that is constantly
evolving and increasingly global.
What happens now
Later today, we will hold a Global Town Hall to walk through what we know and what is still to be determined. Calendar invites will follow shortly after
this email.
Business Unit leaders will hold discussions specific to their areas in the coming days, so you can hear directly from your leader.
Managers will also come together early next week so they have the context and support they need to guide their teams through the early stages of this
transition.
What happens next
The path toward a separation of WBD into Warner Bros. and Discovery Global will shift. We will redirect work tied to the earlier, planned two-company
operating model and focus instead on the steps required to enable this transaction.
In the coming days, we will establish an Integration Office, which will coordinate all planning with Netflix, consistent with regulatory requirements.
Until the transaction closes, WBD and Netflix remain separate companies. It may be tempting to reach out directly to counterparts or former colleagues
at Netflix, but it is essential that all interactions are managed through this office to ensure we meet every legal and regulatory obligation.
What this means for you
We also recognize that many people are looking for more clarity about what to focus on, how to prioritize work, and what this means for their teams.
Those details will become clearer over the next several weeks, as we move toward our 2026 goal-setting and operating plan alignment processes.
As part of that, you will hear guidance from your Business Unit and functional leaders early in the new year, with expectations and priorities anchored to
what we know at that point in the regulatory process.
In the meantime, please continue to focus on the work needed to wrap up 2025, support year-end deliverables, and take the opportunity to rest and
recharge over the holidays.
We will continue to communicate regularly, and new information will be shared in One Insider and on the One website. And we will see you later today
at the Global Town Hall.
As we move through this next chapter, our aim is simple: handle decisions with care, communicate clearly about what we know, and make sure people
have the information and support they need at each step.
I know moments like this carry weight. And they can also mark the beginning of new possibilities. The work you bring to this company - and the way
you have shown up for one another - has built something that others clearly see value in. That matters. And while I cannot predict every step ahead, I am
confident in the strength of our brands, in the talent of our teams, and in the stories, journalism, and experiences we will continue to bring to audiences
around the world.
David
