Employees at the company had started to warm to the idea of Netflix as its corporate owner. Now they face the prospect of major cuts under Paramount.

One European TV and film head raised the potential for EU regulation changing the shape of the deal. Both Paramount and WBD have international networks, sports rights deals and other assets that could be considered problematic under the same roof, and it’s likely watchdogs will look closely at the deal.

The Justice Department is reportedly probing how a sale of Warner Bros. Discovery could impact moviegoers – and potentially lead to fewer new film releases — as Netflix pushes ahead with its winning bid after WBD restarted talks with rival Paramount Skydance.

The most immediate question for consumers is what becomes of the companies’ streaming platforms. Paramount+ is still not profitable on its own, while Warner Bros. Discovery’s streaming segment — anchored largely by HBO Max — has only recently moved toward consistent earnings.