\n\tThe memo (read it in full below) breaks no new ground and refers employees to the duo\u2019s appearance last week at the UBS Global Media and Communications conference in New York for further information. As to whether the deal will signal \u201cthe end of Hollywood,\u201d Peters and Sarandos say they\u2019ve been hearing that doomsday rap for more than a decade. \u201cWe see this as a win for the entertainment industry, not the end of it,\u201d they wrote. \u201cThis deal is about growth: Warner Bros. brings businesses and capabilities we don\u2019t have, so there\u2019s no overlap or studio closures. We\u2019re strengthening one of Hollywood\u2019s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production.\u201d<\/p>\n
\n\tThey also say they expect regulators to approve the combination, reiterating their vow to preserve Warner\u2019s theatrical business.<\/p>\n
\n\tFishman says the situation is \u201cstuck in limbo\u201d until the next development, which will likely be Paramount raising its bid. The company has offered $108 billion, all in cash and including the assumption of debt, for all of Warner Bros. Discovery. Netflix is bidding only on the studio-and-streaming part of the company.<\/p>\n
\n\tThe deal is far more of a must-have for For Paramount than it is for Netflix, Fishman argues. That will compel the company to raise its offer, especially given the fact it is backed by the wealth of Larry Ellison, co-founder of Oracle and one of the world\u2019s richest men.<\/p>\n
\n\tA combined WBD-Paramount entity would be \u201ca formidable scaled streaming competitor,\u201d Fishman writes, \u201cwith a DTC business closer to Disney and Amazon (though still well behind Netflix), and meaningful cost-saving opportunities across linear networks and filmed entertainment.\u201d<\/p>\n
\n\tWith a bid currently at $30 a share, Paramount is expected to boost it into the low- or mid-30s, according to Fishman. Paramount\u2019s final offer price will \u201cultimately depend on how aggressive Netflix is willing to be to hold onto these assets. And in doing so will its all-cash offer risk doing irreparable harm to the balance sheet with a winning bid?\u201d<\/p>\n
\nOUR DEAL WITH WARNER BROS<\/strong>
By:\u00a0Greg Peters\u00a0and\u00a0Ted Sarandos<\/em>
As news around our deal with Warner Bros. continued this week, we wanted to keep you as informed as we can. Our position hasn\u2019t changed: we strongly believe that Netflix and Warner Bros. joining forces will offer consumers more choice and value, allow the creative community to reach even more audiences with our combined distribution, and fuel our long-term growth. We made this deal because their deep portfolio of iconic franchises, expansive library, and strong studio capabilities will complement\u2014not duplicate\u2014our existing business.
This is going to be a complex process over the next year or so and there\u2019s a lot we won\u2019t be able to share, but we did want to give you our thoughts on some of the most pressing questions we\u2019ve heard since we connected last week.
How do we feel about Paramount\u2019s hostile bid?\u00a0<\/strong>It was entirely expected. But, we have a solid deal in place. It\u2019s great for our shareholders, great for consumers, and a strong way to create and protect jobs in the industry. We\u2019re confident we\u2019ll get it over the finish line\u2014and we\u2019re genuinely excited about what\u2019s ahead.
Are we confident regulators will approve?\u00a0<\/strong>We believe in this deal\u2014in the value it creates\u2014 and we\u2019re confident we\u2019ll get the approvals we need to make it happen. The fundamentals are clear: this deal is\u00a0pro-consumer,\u00a0pro-innovation,\u00a0pro-worker,\u00a0pro-creator,\u00a0and\u00a0pro-growth.\u00a0Also, if you look at it through the lens of Nielsen data, even after combining with Warner Bros., our view share would only move from 8% to 9% in the US\u2014still well behind YouTube (13%) and a potential Paramount\/WBD combination (14%). We believe the facts speak for themselves, and we\u2019re fully prepared to put ourselves in a strong position for approval.
Will we preserve theatrical releases as part of WBD\u2019s distribution model?\u00a0<\/strong>Yes\u2014we\u2019re fully committed to releasing Warner Bros. movies in theaters, just as they do today. Theatrical is an important part of their business and legacy, and we don\u2019t want to change what makes Warner Bros. so valuable. If this deal had happened two years ago, hits like\u00a0Minecraft<\/em>\u00a0and\u00a0Superman<\/em>\u00a0would still have premiered on the big screen as they did\u2014and that\u2019s how we plan to keep it. We haven\u2019t prioritized theatrical in the past because that wasn\u2019t our business at Netflix. When this deal closes, we will be in that business.
Some feel this is the end of Hollywood. What\u2019s our response to that?\u00a0<\/strong>This is something that we\u2019ve heard for a long time\u2014including when we started the streaming business. Our stance then and now is the same\u2014we see this as a win for the entertainment industry, not the end of it. This deal is about growth: Warner Bros. brings businesses and capabilities we don\u2019t have, so there\u2019s no overlap or studio closures. We\u2019re strengthening one of Hollywood\u2019s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production.
What\u2019s next?\u00a0<\/strong>We\u2019ve got a small but mighty team of experts working on this so the rest of us can stay focused on the big 2026 ambitions we\u2019ve established for our business. We\u2019ve got huge potential still ahead of us\u2014even before we factor in Warner Bros.\u2014so our focus should remain on realizing that potential based on our organic growth. We know that\u2019s easier said than done with all the headlines and speculation, but continuing to deliver for our members is the best thing we can focus on.
Where is the best place to follow along?\u00a0<\/strong>As a reminder, Take 5 is for employees only. We\u2019ve launched\u00a0a public site\u00a0as our source of truth for external audiences\u2014which will be updated further\u2014and it\u2019s a resource you can share with friends and family who might have their own questions. You can also listen to our\u00a0UBS webcast\u00a0from earlier this week.
-Greg and Ted<\/p>\n<\/blockquote>\n<\/div>\n \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n \u2018 Some details of this article were extracted from the following source deadline.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"In a memo to employees divulged this morning in an SEC filing, Netflix Co-CEOs Greg Peters and Ted Sarandos call their pending $83B acquisition of Warner Bros. \u201ca win for the entertainment business.\u201d Wall Street, however, isn\u2019t entirely convinced. One new report Monday from MoffettNathanson\u2019s Robert Fishman urges the company not to take the bait […]<\/p>\n","protected":false},"author":2,"featured_media":2199827,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[367252,23191,422391,309230,306876],"class_list":["post-2199826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-mergers-and-acquisitions","tag-netflix","tag-netflix-wb","tag-paramount","tag-warner-bros"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2025\/12\/Netflix-CEOs-Call-Warner-Bros-Deal-A-Win-For-The.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2199826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2199826"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2199826\/revisions"}],"predecessor-version":[{"id":2199828,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2199826\/revisions\/2199828"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2199827"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2199826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2199826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2199826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}