Home / Business and Economy / Netflix Buys Warner Bros: Execs Get $38.7M Bonus
Netflix Buys Warner Bros: Execs Get $38.7M Bonus
6 Dec
Summary
- Warner Bros. execs offered $38.7 million in bonuses to stay during Netflix takeover.
- The deal completion is expected to take 12 to 18 months, pending regulatory review.
- Cable networks like CNN and TNT Sports will spin off into a new Discovery company.
Netflix is moving forward with its substantial $82.7 billion acquisition of Warner Bros., a process anticipated to span 12 to 18 months pending regulatory approvals. During this period, Warner Bros. Discovery executives will operate in a holding pattern, focusing on maintaining current operations rather than implementing long-term strategies.
To ensure executive retention, a transaction bonus plan totaling $38.7 million has been disclosed. This fund is designed to incentivize key employees, excluding the CEO, to remain with the company until the merger with Netflix is finalized. This measure is crucial for navigating the extensive regulatory review anticipated over the next year and a half.
Furthermore, Warner Bros. cable networks, including CNN and TNT Sports, are slated for a spin-off into a new company named Discovery Global by the third quarter of next year. Executives supporting this spun-off business will also be eligible for bonuses, capped at 150% of their base salary, provided they remain employed through the merger's completion. This complex restructuring aims to secure stability and reward loyalty amidst significant corporate change.
