Netflix just made headlines with its whopping $82.7 billion purchase of Warner Bros. But this deal isn’t going to close overnight. We’re looking at a wait of 12 to 18 months before everything is finalized.
During this waiting period, Warner Bros. Discovery executives are in a tricky spot. They can’t push forward with long-term plans and will mostly focus on keeping operations steady until Netflix officially takes over.
To keep key leaders on board during this time, Warner Bros. has put together a bonus plan worth $38.7 million. This fund aims to reward designated employees who stick around until the deal is sealed. It’s tailored to ensure that top executives are incentivized to remain through what could be a tumultuous review process.
Meanwhile, some of Warner Bros.’ cable networks, like CNN and HGTV, will soon join a new entity called Discovery Global. The executives in that division will be eligible for bonuses as well, making this incentive even broader within the company.
Interestingly, Warner Bros. CEO David Zaslav isn’t part of this new bonus plan. However, his financial setup has been adjusted, ensuring he stands to gain significantly if the deal concludes successfully.
In historical context, deals of this magnitude come with their challenges. For instance, look at the recent situation with Paramount. Back in July 2024, a sale to David Ellison’s Skydance Media took time to finalize. Executives there had similar incentive structures, and the narrative around who would stay or leave created quite a buzz.
As the dust settles from Netflix’s acquisition, many are left wondering who will stay at Warner Bros. and who might eventually be pushed out. Netflix’s co-founder Ted Sarandos has expressed confidence in gaining regulatory approval, calling the deal beneficial for consumers and creators, emphasizing a collaborative approach with regulators.
This situation offers a glimpse into a rapidly evolving media landscape where massive acquisitions reshape the industry. How this plays out in the coming months will be crucial, not just for the companies involved, but for the entire entertainment sector.
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Netflix,Warner Bros. Discovery
