Netflix’s top executives have broken their silence on the streaming giant’s massive bid for Warner Bros Discovery. Co-CEOs Greg Peters and Ted Sarandos addressed growing industry concerns in a letter to staff, including worries about job cutbacks, the future of movie theaters, and an unexpected rival offer. Their message aimed to calm nerves as one of Hollywood’s biggest-ever deals faces scrutiny.
Confident Stance Against a Higher Rival Bid?
The path to acquiring Warner Bros hit a sudden twist just days after Netflix’s December 5th announcement of an $82.7 billion agreement. Competitor Paramount Skydance Corp made a public, hostile bid valued at a higher $108.4 billion for the entire company. However, the Netflix leaders expressed no panic. They called Paramount’s move “entirely expected” and reaffirmed confidence in their existing deal. Their bid focuses on core studio assets, unlike Paramount’s broader offer which includes units like cable news.
Promising “No Overlap or Studio Closures”
A major worry in Hollywood is that such a mega-merger could lead to significant job losses. The industry is already tense due to streaming economics and the rise of artificial intelligence. Peters and Sarandos directly tackled this fear head-on. They pledged there would be “no overlap or studio closures” resulting from the acquisition. Instead, they framed the deal as a job supporter. “We’re strengthening one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production,” they wrote.
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Major Pivot: Netflix Embraces the Movie Theater
Perhaps the most significant reassurance was about the cinematic experience. Netflix has famously prioritized streaming, with co-CEO Ted Sarandos once calling theater-going “outdated.” This led to fears that iconic Warner Bros films might skip theaters. The CEOs performed a notable pivot, assuring employees they are now committed to theatrical releases. “We haven’t prioritized theatrical in the past because that wasn’t our business at Netflix,” they stated. “When this deal closes, we will be in that business.”
Navigating the Regulatory Hurdles Ahead
Any deal of this size must pass strict regulatory approval, and critics are already loud. Democratic Senator Elizabeth Warren, who labeled Netflix’s original offer an “anti-monopoly nightmare,” called Paramount’s rival bid a “five-alarm antitrust fire.” The Netflix CEOs argued their case is stronger, citing Nielsen data showing a combined Netflix-Warner Bros would have a smaller share of viewer attention than YouTube or a potential Paramount-Warner Bros entity. They expressed confidence, calling the deal “pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth.”
Immediate FAQs Answered
Q: What is Netflix offering for Warner Bros?
A: Netflix has agreed to pay $82.7 billion, including debt, for Warner Bros Discovery’s core studio assets.
Q: Is there another bid for Warner Bros?
A: Yes. Paramount Skydance Corp has made a competing, hostile bid valued at $108.4 billion for the entire company, including parts Netflix does not want.
Q: Will Netflix stop releasing Warner Bros movies in theaters?
A: No. The Netflix CEOs have committed to continuing theatrical releases for Warner Bros films, marking a shift from their previous streaming-first model.
Q: Could this deal lead to job cuts?
A: Netflix executives have pledged “no overlap or studio closures,” claiming that the agreement is meant to sustain and expand employment.
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