Netflix CEOs Push Back as WB Acquisition Faces Hostile Paramount Counterbid

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The proposed deal between Netflix and Warner Bros. is still causing a big reaction in Hollywood, and Netflix leaders are now publicly explaining their position. In a recent internal message, Netflix co-CEOs Ted Sarandos and Greg Peters responded to employee worries about buying Warner Bros. studios, HBO, and HBO Max. They stated the deal will actually benefit the entertainment industry, despite some critics fearing it could harm Hollywood.

A recently released memo, detailed in a filing with the Securities and Exchange Commission (SEC) and initially reported by Variety, shows that Netflix is currently dealing with a competing offer from Paramount Skydance. This has quickly turned into a major and competitive fight for control within the media industry, unlike anything seen in decades.

Inside the Netflix WB Acquisition

On December 5th, Netflix officially announced it would buy Warner Bros. Studios, HBO, and HBO Max for $82.7 billion. However, just three days later, Paramount Skydance, under the leadership of David Ellison, made an unexpected offer to Warner Bros. Discovery shareholders. They proposed $30 per share, which would value the company at $108.4 billion—essentially attempting to outbid Netflix.

Instead of arguing with Ellison in public, Sarandos and Peters chose to speak directly to Netflix staff, admitting there were difficulties but expressing optimism that the agreement with Warner Bros. would eventually succeed.

The CEOs acknowledged the unwelcome takeover attempt, stating they anticipated it. They emphasized that they already have a strong agreement that benefits shareholders, customers, and employees, and they are optimistic it will be finalized. They expressed enthusiasm for the future of the company.

Regulatory Scrutiny and Market Share Claims

A major point of debate surrounding Netflix’s purchase of Warner Bros. is whether regulators will approve a streaming service owning such a well-known and established film studio. Netflix’s Ted Sarandos and Ann Sarnoff directly responded to this concern, explaining that the merged company wouldn’t have a larger audience share than its main competitors.

A recent Netflix memo revealed that, according to Nielsen data, even with the acquisition, Netflix’s share of U.S. viewing would only increase from 8% to 9%. This would still leave it behind YouTube, which has 13%, and a potential combination of Paramount and Warner Bros., which could reach 14%.

The CEOs expressed their strong support for the agreement, emphasizing its potential benefits and their expectation that it will be approved.

They also stated the deal benefits consumers, encourages innovation, supports workers and creators, and promotes economic growth. This suggests Netflix believes regulators will approve it.

Theatrical Releases: Netflix Makes a Key Promise

As a big fan of both Netflix and Warner Bros., I’ve been a little worried about what their deal means for movies in theaters. Netflix usually puts everything straight onto streaming, and I was concerned that might mean Warner Bros. would stop prioritizing the big-screen experience. It’s a relief to see they’re addressing those concerns and hopefully finding a way to balance both!

In a recent memo, Sarandos and Peters reassured people by directly promising that Warner Bros. movies would continue to be shown in cinemas.

We plan to continue releasing Warner Bros. films in cinemas, the same way we do now.

The CEOs recognized how Netflix operated in the past, but stressed that Warner Bros. is taking a completely different approach.

Netflix hasn’t focused on movie theaters before, as it wasn’t part of our core business. But with this new agreement, we’ll be entering the theatrical business.

They also used popular movies like Minecraft and Superman as examples, arguing that Netflix would still have released them in theaters.

‘The End of Hollywood’ or the Next Evolution?

The memo directly responded to concerns that the Netflix deal with Warner Bros. Discovery signaled the end of Hollywood as we know it. Netflix’s Ted Sarandos and Bill Peters strongly disagreed with this idea.

Addressing worries within the company, the CEOs stated that they view this development as a positive step for the entertainment industry, not a sign of its decline.

They explained that Warner Bros. offers strengths Netflix currently lacks, and emphasized the merger wouldn’t lead to redundancies or studio shutdowns.

We’re working to revitalize a legendary Hollywood studio, protect jobs, and help the film and TV industry thrive.

What Comes Next for the Netflix WB Deal?

Even with all the recent news and political attention, Netflix leaders have stated they remain focused on their long-term plans and aren’t letting short-term issues distract them from the acquisition.

Sarandos and Peters informed staff that a specific team is handling the acquisition, allowing the rest of Netflix to focus on its long-term goals for 2026 and the years following.

“Continuing to deliver for our members is the best thing we can focus on,” the statement said.

As a critic, I’m watching the Netflix-Warner Bros. deal with a lot of uncertainty – will regulators even let it happen, or will Paramount and Skydance swoop in and change everything? What’s becoming clear, though, is that Netflix isn’t trying to destroy Hollywood. They seem to believe that the only way forward in this fragmented entertainment world is for companies to join forces and consolidate power. It’s a surprising shift, and it suggests they’re playing a long game focused on stability, not revolution.

The fight for control of Warner Bros. isn’t finished, and the outcome could significantly shape the future of Hollywood.

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2025-12-16 16:58