What’s waiting for WarnerMedia & Discovery’s international operations following the $ 43 billion merger?

David Zaslav wasted no time making significant changes to Warner Bros. Discovery, and many on this side of the Atlantic are now wondering what’s going on in the international ranks, where United Studios has thousands of employees.

Even before WarnerMedia and Discovery completed a $ 43 billion merger on Friday, the ax fell on the former US senior executive.

Last week, according to a study source, the high-level savings of US personnel could save $ 70 million. According to forecasts provided to Wall Street by Discovery, this is just the beginning of a savings effort designed to squeeze $ 3 billion out of a new operation. Keep in mind that the $ 3 billion savings are far more than Disney promised Wall Street when it absorbed Fox, a merger that led to the downsizing.

office space

As with any merger, speculation abounds. Among the executives of the firm we spoke to in Europe, there is an expectation that there will be a facilitation in local international offices. The reorganization, of course, is a fact.

“They will try to cut costs internationally,” predicted a source of the study. “The employees will know that the reductions are possible and there will be no surprise if they arrive, but at the same time it is entirely possible that nothing has been communicated yet.”

Another well-positioned source at the UK studio told us that Warner Bros. UK film department staff are preparing for the changes. “People have known for months this was happening. The headhunters have been talking to the employees there for some time. “

A well-connected source said Discovery could leave the de facto giant’s former international base in Chiswick, west London, and rumors still linger. Warner Bros. in 2019 moved Turner’s staff to a new office on Old Street, across the city, and also has offices in central London. “It goes without saying that they could save money,” the source said.

Spokespersons for WarnerMedia and Discovery declined to comment on the potential changes. So far, all high-level public communications have come from the United States, but sources on both sides are expecting internationally focused communications in the coming days.

strategy

Most likely, only a few people know what international consolidation will look like and exactly when it will arrive. These few people are likely WBD CEO David Zaslavia; JB Perrette, who has been named CEO and President of Warner Bros. Discovery Global Streaming and Interactive Entertainment; And perhaps the president of WarnerMedia International, Gerhard Zeiler, who will remain.

Of course, there are a lot of questions about structure and strategy.

Will Zaslav and Joint Operations redouble their efforts to renegotiate existing Sky agreements in major European markets such as the UK, Germany and Italy? It’s still a dead problem, but will the new regime be content to wait years for HBO Max to reach these precious areas? International growth is vital for global payments for Netflix and Amazon. How long can Warner Bros. Discovery wait for HBO Max to launch in Europe’s largest markets?

How aggressive will the United Company be in taking its place in a profitable international sports scene? Discovery is a French pan-European television network, Eurosport, which owns the sports rights, including the Olympic Games House. Earlier this year, Discovery entered into talks with UK sports broadcaster BT Sport regarding the commercial merger of Eurosport in the UK and Ireland. BT Sport hosts the current UEFA Champions League and dozens of Premier League football matches in the UK.

Speak to MIPTV Terraces last week: Can a combo studio buy Channel 4 to give it a popular platform in the UK? Discovery has had a strong connection with Channel 4 in the past, purchasing many programs for the second window.

Structure

Discovery is currently dividing its European operations into several territorial divisions, and sources say a plan has already been developed to bring together a leader.

Meanwhile, WarnerMedia’s international team is getting used to the change. Just 18 months ago, the firm created a new facility for its international leaders, area leaders with joint networks and commissioned by Warner Bros. It was a facility created to “respond to changing customer habits with our needs in the future. “, the company said in a statement at the time.

The structure included Adam Presser, who oversaw China, Australia and New Zealand; Whit Richardson rules Latin America; And Priya Dogra oversees Europe, the Middle East, Africa and much of Asia.

At the end of 2020, Josh Berger, longtime CEO, President and CEO of Warner Bros., Ireland and Spain, left the studio and last summer Iris Knobloch, a 25-year veteran, president of WarnerMedia France, left the firm last summer. agency. , Benelux, Germany. Austria and Switzerland.

After Knobloch’s departure, Sylvia Rotblum was one of the company’s managers in Germany; Pierre Branco in France, MENA and Africa; And Jamie, a friend of Northern, Central and Eastern Europe. Paul Cochrane heads the UK office.

WarnerMedia’s Dogra, a streaming services expert whose sources say Zeiler considers a protege, and Discovery’s president and Kasia Kieli, Discovery’s president and MD EMEA, Kasia Kieli are seen as strong players and likely to be key players in the market. of the future of combined studies.

Kiel has been highly regarded on Discovery and has been promoted multiple times, having previously operated the TVN company’s Polish free-to-air channel, and the dog’s value is evident in his role in overseeing the programming, marketing and distribution of Linear Networks. WarnerMedia. , program and content distribution in the United States and international wholesale distribution of HBO Max.

Currently under Discovery is Kiel under the British and Nordic head of London based James Gibbons. Internally respected, the company veteran has been touted as a leading role in European voices, serving as the go-between between managers and Kiel.

Back to WarnerMedia, Dogra Reports in Zeiler, who now has a dotted line on Peret, Zaslav’s longtime ally.

Currently, Christina Sulebeck, General Manager of HBO Max EMEA, serves as the Head of HBO Max International. johannes larcherand Anthony Ruth, the original HBO Max boss in the region, reports Dogra. “They basically operate as a separate business, you can see that,” a source said.

Meanwhile, London-based Warner Bros. International Television Production oversees a global production team that includes in-house operations around the world and well-known production companies such as UK Wall to Wall and Twenty Twenty. WBITVP staff understandably do not expect large-scale changes.