Warner Bros. Netflix Deal Triggers Strict Legal Controls Inside WBD as Employees Warned What They Can—and Cannot—Do

The deal for Netflix to acquire Warner Bros. has moved forward significantly. A recent message to Warner Bros. Discovery employees confirms that the company’s board has officially approved the acquisition. After the deal closes, the remaining parts of Warner Bros. Discovery will become a separate company called Discovery Global. This news also includes new legal rules for employees as regulators carefully review what could be one of the largest mergers in entertainment history.

Although it was previously believed talks were still happening, this internal message reveals a deal has actually been agreed upon. Employees have now received guidelines for the time leading up to the official completion of the deal.

The Big Confirmation: What WBD Told Employees

In a company-wide email, the Legal team announced that the Board has approved Netflix acquiring Warner Bros. The remaining parts of the company will become a separate company called Discovery Global.

Okay, so the rumors are true! Netflix isn’t just talking about buying a studio—they’ve actually signed a deal! But here’s the catch: it’s not a done deal yet. This acquisition is going to face some serious scrutiny from regulators, and getting it approved won’t be easy. It’s a big step, but still a long road ahead.

The communication highlights that because this deal is both a sale and a company split, it presents unique legal and regulatory hurdles. As explained in the memo, this structure demands extra care and attention to legal requirements, since it involves complying with the rules for both types of transactions.

In other words: every move employees make is now being watched through a legal microscope.

WBD and Netflix Must Remain Completely Separate

Staff were reminded that until the acquisition is finalized, both companies need to continue operating as separate competitors, as detailed in the recent email.

“We must operate as separate, independent companies – WBD and Netflix.”
“No confidential information may be shared with Netflix.”
“No joint planning or coordination may occur.”

It’s typical for mergers to face this level of scrutiny, but the way regulators are responding suggests they’re particularly concerned about how much of the streaming market a combined Netflix and Warner Bros. would control.

What Employees Can Do

Legal clarified what workers are allowed to do, listing these as “Permitted Activities.” They explained that employees should continue working as they did before the announcement, with no changes.

“Do operate independently.”
“Do maintain a full competitive posture.”
“Do interact with Netflix only in the ordinary course of business.”

Employees aren’t allowed to discuss or plan for what happens after the merger, even informally. They need to focus entirely on Warner Bros. Discovery’s current needs and avoid anything that might look like they’re already combining operations.

What Employees Cannot Do

The “Prohibited Activities” section is the most revealing—and the strictest.

Okay, so I just read this internal memo, and basically, we’re not allowed to talk to anyone at Netflix about anything that could give them an edge. They specifically mentioned things like how much we charge for our service, how we get content out there, our marketing plans, how we negotiate with actors and creators, and even which projects we decide to make. It’s all off-limits – we can’t coordinate with them on anything competitive!

This document prohibits discussing or collaborating on anything that gives one competitor an advantage. Specifically, you shouldn’t talk about pricing, how products are sold, licensing agreements, hiring or contract negotiations, marketing strategies, which projects to approve, or future technology and product plans.

Legal reinforces the severity, saying, “No exceptions without explicit Legal approval.”

As a big fan, I understand that some things just need to stay private! We were reminded that we absolutely can’t share anything that could give our competitors an edge. That means keeping things like our financial details, future plans, pricing, what content we’re working on, how well we’re doing, and details about any deals or talent talks completely confidential.

Additionally, they’re prohibited from sharing confidential documents, having any contact with Netflix staff beyond regular work, or discussing the agreement publicly without getting official permission.

Okay, so the big takeaway from this is pretty clear: keep quiet about the deal unless you’ve gotten the okay first. They really want to control the narrative and present a united front, so no rogue tweets or interviews – they want everyone on the same page and speaking with one voice. It’s a classic ‘need to control the message’ situation, and they’re making that very clear.

Because these are large companies, regulators will be carefully monitoring them for any evidence they secretly planned the deal before it was finalized.

What Happens Next?

The email concludes by noting that employees should expect:

Additional legal guidance
Updated FAQs
Training for teams involved in regulated workstreams

The deal’s conclusion expresses gratitude for the team’s professionalism and highlights how crucial following procedures was, given this may be one of the most significant deals in Warner Bros.’ recent history.

Final Thoughts

This message confirms the agreement between Warner Bros. and Netflix is official – it’s been approved by the company’s board of directors. Now, it needs to be reviewed by regulators, which will take time. Until that review is complete, employees should continue to view Netflix as a competitor, not as a potential new owner.

Considering the size of the content library, how much power this company has in the market, and its worldwide audience, the detailed rules around this deal make it clear: regulators will closely examine this acquisition, and Warner Bros. Discovery is prepared for that.

Success will fundamentally change Hollywood. Failure will reveal just how determined Netflix was to acquire Warner Bros., marking a pivotal moment for the industry.

2025-12-05 17:59