Netflix CEOs defend Warner Bros deal: What they say on Paramount bid, job loss fears, theatrical release and more
Two chief executive officers of streaming giant Netflix shared their reasons for acquiring Warner Bros Discovery after Paramount Skydance Corp went public with a rival bid, according to a report by Bloomberg.
On December 5, Netflix announced that it had agreed to pay Warner Bros. $82.7 billion, including debt. Three days after the offer, Paramount responded with an offer for the entire company, including some units such as cable news that Netflix did not plan to acquire. A rival bid valued the studio at $108.4 billion.
In a letter to employees on Monday, December 15, Greg Peters and Ted Sarandos expressed concerns about the industry’s job losses and the end of theatrical releases.
Number of theatrical releases
Executives have assured that they are committed to releasing Warner Bros movies in theaters, following claims that Netflix will prioritize the priority streaming model. Sarandos has previously described going to the theater as an “outdated” experience.
The report included the co-CEOs’ statement: “We have not prioritized theater in the past because that was not our job at Netflix.” “When this deal is completed, we will be involved.”
Aim to increase employment
They also promised there would be “no overlaps or studio closures”, addressing concerns that the mega-deal could lead to reduced jobs in an industry already affected by the growth of streaming platforms and artificial intelligence.
“This deal is about growth,” they wrote. “We are strengthening one of Hollywood’s most iconic studios, supporting jobs and ensuring a healthy future for film and TV production.”
upon offer from Paramount
The report also noted that Netflix CEOs said Paramount had a deal with Warner Bros. that covers the entire company and offers a higher payout to shareholders. It was stated that it was working to finalize the deals after submitting a hostile bid for the company. But they continue to have confidence in the $82.7 billion deal.
“It was completely expected,” they said when discussing the Paramount offer. “But we have a solid deal.”
Regulatory approval concern
Concerns were also raised about regulatory approval for any potential deal, the report said. Peters and Sarandos cited Nielsen data indicating that the Netflix-Warner Bros. partnership would have a smaller audience share than YouTube or a possible Paramount-Warner Bros. partnership.
“We are confident we will get the approvals we need to make this happen,” Netflix leaders wrote. “The fundamentals are clear: This deal is pro-consumer, pro-innovation, pro-worker, pro-creator and pro-growth.”
Meanwhile, Democratic Sen. Elizabeth Warren of Massachusetts called Paramount’s offer “five-alarm antitrust fire.” He had previously described Netflix’s offer as an “anti-monopoly nightmare”.
If the deal is approved, Netflix will acquire one of Hollywood’s oldest and most famous studios in one of its largest media deals ever. It would also take control of HBO, which had once been a source of inspiration.
