Co-CEOs of Netflix, Ted Sarandos and Greg Peters, are advocating for a takeover of Warner Bros. Discovery to ease rising tensions in Hollywood, particularly as Paramount Skydance pursues a hostile bid for the same company.
In a recent letter to staff, they aimed to ease fears about potential layoffs and the possibility that the deal could lead to the end of theatrical releases. Sarandos has previously called the moviegoing experience somewhat “old-fashioned.”
They noted, “We haven’t focused on theatrical production before because that hasn’t been our business.” But they expect that to change once the acquisition is finalized.
Executives reassured employees that there would be “no duplication or studio closures,” easing worries that the massive deal could trigger job cuts in an industry already facing challenges from streaming and AI advancements.
“This deal is about growth,” they affirmed. “We aim to enhance one of Hollywood’s iconic studios, ensuring job security and a robust future for film and television production.”
Netflix is approaching a $72 billion acquisition that includes HBO, HBO Max, and Warner Bros. Studios, shortly after Paramount’s aggressive takeover bid on December 8, which values Warner Bros. Discovery—including its cable assets—at around $78 billion with a cash offer of $30 per share.
Despite the competition, Netflix maintains confidence in its $27.75 per share agreement signed on December 5, suggesting WBD shareholders could see greater value if its cable segments are divested.
The CEOs did acknowledge that Paramount’s approach was anticipated, stating, “But we have a solid contract.” One concern looms over whether regulators will approve the acquisition, especially since Netflix would then control the top two streaming services.
They pointed out Nielsen’s viewer data, implying that a partnership between Netflix and Warner Bros. would exhibit a “lower viewership share” compared to another alliance with Paramount.
Senator Elizabeth Warren has voiced objections to both takeover attempts, characterizing Paramount’s bid as a “five-alarm antitrust fire.”
She has even labeled Netflix’s pursuit as an “anti-monopoly nightmare.”
If the agreement goes through, Netflix would acquire one of Hollywood’s most historic studios, with a legacy that includes classics like Casablanca and The Wizard of Oz, alongside famous series such as Harry Potter and The Lord of the Rings. This would be regarded as one of the largest media transactions ever.
The streaming giant would also gain oversight of HBO, which has been seen as a model for quality television with acclaimed shows like The Sopranos and Game of Thrones.
