Netflix Leaders Defend Warner Bros. Deal and Promise Big-Screen Releases
Netflix co-CEOs Ted Sarandos and Greg Peters are standing by the company’s plan to acquire Warner Bros. and HBO Max, even as Paramount Skydance launches a hostile bid.
In a memo to staff shared via the SEC and Netflix’s internal Take 5 blog, the executives expressed confidence that the $82.7 billion deal will survive the challenge and gain regulatory approval.
Netflix announced the Warner Bros. acquisition on December 5. Shortly after, Paramount Skydance made an unsolicited $108.4 billion offer directly to shareholders, attempting to outbid Netflix.
Responding to the move, Sarandos and Peters told employees, “It was entirely expected. But, we have a solid deal in place. It’s great for our shareholders, great for consumers, and a strong way to create and protect jobs in the industry. We’re confident we’ll get it over the finish line — and we’re genuinely excited about what’s ahead.”
The memo addressed concerns that the merger might threaten Hollywood’s future. The co-CEOs emphasized that the deal is about growth and strengthening one of the industry’s most iconic studios.
“This deal is about growth: Warner Bros. brings businesses and capabilities we don’t have, so there’s no overlap or studio closures. We’re strengthening one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production,” they wrote.
Netflix also reaffirmed its commitment to keeping Warner Bros. films in theaters, a point that has drawn scrutiny given Netflix’s streaming-first model. Sarandos and Peters said theatrical releases are an important part of the studio’s legacy.
“If this deal had happened two years ago, hits like ‘Minecraft’ and ‘Superman’ would still have premiered on the big screen as they did — and that’s how we plan to keep it. We haven’t prioritized theatrical in the past because that wasn’t our business. When this deal closes, we will be in that business,” they added.
The memo highlighted that regulatory approval is a key step but expressed confidence that the merger will pass review. Even combined with Warner Bros., Netflix’s U.S. viewing share would only increase modestly, from 8% to 9%, still below YouTube at 13% and a potential Paramount-WBD merger at 14%.
Looking ahead, Sarandos and Peters urged staff to focus on Netflix’s broader growth goals for 2026, while a dedicated team manages the Warner Bros. transition. “We’ve got huge potential still ahead of us — even before we factor in Warner Bros. — so our focus should remain on realizing that potential based on our organic growth,” they said.
In their full memo, Sarandos and Peters framed the deal as beneficial for consumers, creators, and the industry as a whole, and noted that transparency with employees is key. They encouraged staff to follow internal communications for updates and to stay focused on delivering content to members.
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