WASHINGTON (dpa-AFX) - Netflix's co-CEOs, Ted Sarandos and Greg Peters, have reassured their team that they remain optimistic about the company's plan to acquire Warner Bros., which includes HBO and HBO Max.
This is despite facing a competing bid and the likelihood of regulatory scrutiny. In an internal memo shared through a regulatory filing, they expressed the belief that their deal is solid enough to withstand challenges from Paramount Skydance, which recently made a hostile offer for Warner Bros. Discovery.
Netflix announced its intention to buy Warner Bros.' assets on December 5, with the deal valued at roughly $82.7 billion.
Just a few days later, Paramount Skydance, led by David Ellison, upped the ante with a $108.4 billion bid directly aimed at Warner Bros. shareholders. Sarandos and Peters said they expected this rival move and reiterated that Netflix's proposal is advantageous for shareholders, consumers, and workers in the industry.
When it comes to worries about market concentration, the co-CEOs are confident they will get regulatory approval. They argue that even with the merger, the combined company would still lag behind competitors like YouTube in overall viewing share.
Plus, they pointed out that Warner Bros. would keep releasing films in theaters, marking a new direction for Netflix that they haven't focused on before.
The executives framed this acquisition as a chance for growth rather than a challenge to Hollywood.
They highlighted how Warner Bros. has valuable studios, franchises, and production capabilities, urging employees to keep their eyes on Netflix's broader long-term goals.
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