Netflix Stands Firm on Warner Bros Deal

Netflix reiterated its commitment to its agreed transaction with Warner Bros. Discovery (WBD). The streaming giant has played down the impact of a rival bid from Paramount and raised questions around regulatory approval.

In a letter to employees, Netflix co-CEOs Greg Peters and Ted Sarandos said the company’s stance on the deal hasn’t changed, arguing that it would offer consumers more choice and value and fuel its long-term growth. Peters and Sarandos described the rival move as entirely expected, but stressed that Netflix has“a solid deal in place.

On regulatory scrutiny, the executives said they remain confident in securing approvals, claiming the deal is great for Netflix shareholders, great for consumers, and a strong way to create and protect jobs in the industry. They pointed to data from Nielsen showing that Netflix’s US view share would rise from 8% to 9% post-transaction, still well behind YouTube (13%) and a potential Paramount/WBD combination (14%). However, attorneys have cautioned that regulators may not view Netflix and YouTube as direct competitors, given the differences in their content and business models.

Netflix also played down fears over job cuts, stating that WBD would bring businesses and capabilities they don’t have, resulting in no overlap or studio closures. The group said a dedicated internal team is managing the transaction while the broader business remains focused on its longer-term growth ambitions.