Netflix Defends Warner Bros. Acquisition Amid Rival Offer From Paramount

Netflix’s co-chief executives, , . Discovery, countering a competing hostile bid from Paramount Skydance. In a letter addressed to employees, the leadership team emphasized the long-term benefits of the deal, including the continuation of theatrical releases and job stability across the entertainment industry.

The letter, made public in a filing with the Securities and Exchange Commission, directly addresses concerns that Netflix would de-prioritize traditional cinema in favor of streaming. “We haven’t prioritized theatrical in the past because that wasn’t our business at Netflix,” they wrote. “When this deal closes, we will be in that business.” The executives made clear that Warner Bros. films will continue to be released in theaters, aligning with broader industry expectations of maintaining a hybrid distribution model.

The co-CEOs also sought to dispel fears of job cuts and studio closures, stating that the merger is “pro-worker” and will create a stronger, more sustainable foundation for the entertainment sector. “We’re strengthening one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production,” they said. This messaging reflects an effort to reassure both internal and external stakeholders, including lawmakers and industry professionals, who have raised concerns over the scale of the acquisition.

. The rival offer includes units of Warner Bros. that Netflix has no interest in acquiring, such as its cable news division. Peters and Sarandos characterized the move as expected but reiterated their confidence in the existing agreement. “It was entirely expected,” they wrote. “But, we have a solid deal in place.”

Regulatory approval remains a critical hurdle for the transaction. Netflix executives referenced Nielsen viewership data to suggest that a Netflix-Warner Bros. combination would result in a smaller market share than a Paramount-Warner Bros. deal or YouTube. This argument has been used to counter concerns about antitrust implications, with critics from both parties—including Democratic Senator Elizabeth Warren and Republican Senator Mike Lee—raising alarms about the potential for monopolistic behavior.

The ongoing competition between the two bidders has brought the media industry into the spotlight, with political figures and industry analysts weighing in on the implications of a potential shift in Hollywood’s power structure. While the final outcome remains uncertain, Netflix’s leadership has positioned the acquisition as a strategic move to expand its influence and ensure the continued vitality of both streaming and traditional entertainment sectors.