Netflix Co-CEO Ted Sarandos Accuses Paramount of ‘Flooding the Zone’ to Confuse Shareholders
Netflix co-CEO Ted Sarandos came out excitedly after the streamer and Warner Bros. Discovery accused David Ellison & Co. of “inundating the area with shareholder confusion” and gave Paramount “until February 23 to submit a best and final offer.”
“They don’t really understand the deal, including presenting all these hypothetical offers, talking directly to shareholders, and bypassing the Warner Bros. Discovery board,” Sarandos told CNBC on Tuesday. “So we’ve given these shareholders the opportunity to get exactly what they deserve, which provides complete clarity and certainty about what these deals are worth.”
“We are confident that Netflix’s agreement to acquire these assets is the best deal and creates the best value for shareholders,” Sarandos added. “And [the Warner Bros. board] Think like that too. So they recommended the deal and reiterated this post to recommend this deal. So give them seven days to put their money where their mouth is.”
During the seven-day period, Paramount and Warner’s board of directors will discuss unresolved deficiencies and clarify certain terms in the former’s most recently amended offer of $30 per share, though Netflix reserves the right to match any counteroffer from Paramount. The media giant has signaled it is willing to raise its offer to at least $31 per share to restart talks, but said it was not its “best and last” offer.
Asked about raising his bid to reach Paramount, Sarandos said: “It’s not something you usually do with a phone call. And I don’t want to go into hypotheticals about what we’re doing with all these moves. Let them make a move and then we’ll see where the next step takes us.”
Last December, Netflix completed its offer to acquire WBD’s studio and streaming unit for $82.7 billion. Paramount has since made multiple hostile offers for the entire WBD, appealing directly to shareholders who will vote on the Netflix bid next month. Paramount has seven more days to negotiate with the board and increase its bid to potentially submit its best offer.
Sarandos also acknowledged in the interview that the deal has not been embraced by Hollywood, as recent years have seen cuts and consolidations.
“People will say the choice would be no deal,” he told CNBC. “That’s what the unions want. That’s what a lot of people want, no deal. But the board of Warner Bros. Discovery has decided that selling these assets is in their best long-term interest, so a deal will be made.”
Netflix announced on Tuesday that Warner Bros. He reiterated that the agreement he made with more choice and more value for viewers Worldwide with expanded access to extraordinary films and television at home and in theaters.
