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Netflix co-Chief Executive Officers Ted Sarandos and Gregory Peters said the company remains committed to its planned acquisition of Warner Bros. Discovery and is confident the transaction will be completed successfully.
In a letter to employees, Sarandos and Peters stated that Netflix’s position on the deal has not changed, despite a competing offer from Paramount. They said the proposed combination would provide consumers with greater choice and value while supporting long-term growth.
The executives described Paramount’s counterproposal as “entirely expected” but emphasized that Netflix already has a firm agreement in place. According to the letter, the deal is beneficial for shareholders and consumers and represents a meaningful opportunity to create and protect jobs across the entertainment industry.
They also expressed confidence that all necessary regulatory approvals would be secured.
Addressing competition concerns, Netflix said that even after a merger with Warner Bros. Discovery, its share of U.S. viewing would increase only slightly, from about 8% to 9%.
This would remain below YouTube’s estimated 13% share and a potential Paramount–Warner Bros. Discovery combination, which could reach around 14%.
The letter noted that Warner Bros. Discovery’s traditional distribution model, including theatrical releases, would be maintained.
The executives rejected claims that the acquisition would mark “the end of Hollywood,” arguing instead that it would support innovation, employees, and sustainable growth in the entertainment sector.
Netflix announced on December 5 that it had reached an agreement to acquire Warner Bros. Discovery’s film and television studios, as well as HBO and the HBO Max streaming service, at an equity value of $72 billion and a total enterprise value of $82.7 billion.
Following that announcement, Paramount revealed it had submitted a competing bid to acquire all outstanding shares of Warner Bros. Discovery for $30 per share in cash, valuing the company at approximately $108.4 billion.
Despite the higher offer, Netflix reiterated its determination to proceed with the agreed transaction.
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