Netflix has reaffirmed its commitment to acquiring Warner Bros Discovery’s assets despite a rival bid from Paramount, co-CEOs Greg Peters and Ted Sarandos said in a letter to employees on Monday.
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Earlier this month, Netflix secured a $72 billion equity deal for Warner Bros’ TV, film studios, and streaming assets after winning the company’s vote, preceding Paramount’s hostile $108.4 billion enterprise offer.
The streaming giant stressed its dedication to theatrical releases of Warner Bros films, calling them “an important part of their business and legacy.” “We haven’t prioritized theatrical in the past because that wasn’t our business at Netflix. When this deal closes, we will be in that business,” the letter stated.
Netflix acknowledged potential regulatory hurdles but expressed confidence in securing approvals, arguing the deal is crucial to competing with YouTube’s dominance. The company highlighted that even after the acquisition, its U.S. market share would rise only from 8% to 9%, still below YouTube (13%) and a potential Paramount/WBD merger (14%).
Addressing concerns over AI-driven job losses, Netflix assured that the acquisition would not lead to studio closures. Paramount had similarly promised to maintain content budgets and operate both studio units independently.
The move positions Netflix to strengthen its content library and theatrical presence while navigating intense competition and scrutiny in the entertainment industry.
