Netflix co-CEOs Ted Sarandos and Greg Peters have issued a letter to employees seeking to alleviate concerns about the company’s bid for Warner Bros. Discovery’s studio and streaming assets.
The executives emphasized that there is “no overlap” between the two businesses and promised that no studios would be closed as a result of the acquisition.
They framed the deal as a growth strategy intended to strengthen one of Hollywood’s most iconic studios while ensuring a sustainable future for film and TV production.
Addressing industry concerns about the decline of theatrical releases, the CEOs committed to continuing Warner Bros.’ tradition of releasing movies in theaters, marking a significant shift from Netflix’s previous model of streaming-first releases.
The reassurance comes as Netflix faces a hostile $108 billion counter-bid from Paramount Skydance for the entire Warner Bros. company.
While Netflix’s $82.7 billion offer focuses on the studio and streaming segments, Paramount’s higher all-cash bid includes the linear TV networks.
Despite the intense competition and potential regulatory hurdles, Sarandos and Peters expressed confidence in securing approval, citing data that suggests a Netflix-Warner Bros. combination would still have a smaller market share than YouTube or a Paramount merger.
Key Takeaways:
- Netflix CEOs promised no studio closures if they acquire Warner Bros.
- The executives are committed to keeping Warner Bros. movies in theaters.
- Paramount has launched a hostile $108 billion counter-bid for the company.
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