The merger between WarnerMedia and Discovery edges closer, which means billions of dollars in savings are about to be found.
It might not be a deal quite on the level of Disney’s acquisition of Fox, but there’s a $43bn merger taking place between WarnerMedia and Discovery. This includes the Warner Bros movie and TV arm as well, and reports suggest that Discovery shareholders are about to greenlight the deal. It’s become a lot closer to becoming a reality.
With that comes the inevitable drive to save on costs. The deal will see WarnerMedia being spun-off from current parent AT&T, and as is the modern way, numbers are being thrown around as to just what ‘efficiencies’ need to be found.
In this case, Deadline reports the need for ‘at least $3 billion in cost savings’ once the merger is complete. That, to those of us who don’t work in boardrooms, means ‘lots of people losing their jobs’. It’s never lost of me that the Disney/Fox deal lost thousands of people their positions, even as the narrative was something akin to ‘oh cool, the X-Men can join the Avengers’.
In the case of the Discovery/WarnerMedia merger, going back to that Deadline report, “back-office and administrative functions, as well as business areas like distribution, advertising and marketing, are likely to drive most of the savings”.
Sending the very best to the employees concerned. You can read more on the deal here.
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