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Netflix Defends Warner Bros. Deal as Paramount’s Hostile Bid Presses Challenge

Netflix’s CEOs publicly defended their board‑approved deal, emphasizing theatrical releases and jobs.

Overview

  • In a staff letter filed with the SEC, Netflix co‑CEOs Greg Peters and Ted Sarandos called the Warner Bros. acquisition pro‑consumer and pro‑worker and said they are confident in regulatory approval.
  • Netflix pledged to keep releasing Warner Bros. films in theaters and said there would be no overlap or studio closures, positioning the transaction as job‑preserving growth.
  • The board‑backed Netflix agreement is an asset purchase valued at about $82.7 billion including debt and excludes WBD’s cable networks, which are slated for a spin‑off into Discovery Global.
  • Paramount Skydance is countering with a hostile all‑cash tender for the entire company at roughly $108 billion, a bid that would include CNN and other cable assets.
  • Netflix cited Nielsen data that a combined view share would rise from 8% to 9% versus YouTube at 13% and a potential Paramount‑WBD at 14%, while antitrust experts and unions warned of lengthy, uncertain reviews and raised concerns about consolidation and CNN’s future.