Netflix's co-CEOs Ted Sarandos and Greg Peters reaffirmed Monday, in an internal letter to employees that the company's commitment to acquiring key Warner Bros. Discovery (WBD) assets remains unchanged, despite a competing hostile bid from Paramount Skydance.
The executives described the rival offer as "entirely expected" and emphasized that the proposed combination with Warner Bros. is "pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth." They highlighted that, even post-deal, Netflix's U.S. viewership share would only increase from 8% to 9%—still trailing YouTube at 13%—and committed to preserving Warner Bros.' theatrical film releases, calling it "an important part of their business and legacy."
Netflix announced its binding agreement on December 5, 2025, to acquire Warner Bros.' film and TV studios, HBO, Max streaming service, gaming division, and content library in a cash-and-stock deal valued at $72 billion equity ($82.7 billion enterprise value, including debt).
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| Netflix co-CEOs Ted Sarandos and Greg Peters |
The transaction excludes WBD's linear networks (e.g., CNN, TNT, Discovery Channel), which are set to spin off into a separate company, Discovery Global, in Q3 2026.The deal followed a competitive auction involving Paramount Skydance and Comcast, with Netflix's bid prevailing for its higher valuation and compatibility with WBD's split plans.
It promises $2–3 billion in annual cost synergies while expanding production and maintaining operations.Paramount Skydance responded on December 8 with a hostile all-cash tender offer for the entire WBD at around $108 billion ($30 per share), arguing superior value and lower regulatory hurdles.
WBD's board is reviewing the proposal but continues to support the Netflix transaction, with a shareholder recommendation expected soon.
The outcome hinges on board decisions, shareholder votes, and anticipated antitrust reviews in the U.S. and EU. The megadeal could significantly consolidate Hollywood, combining Netflix's streaming leadership with Warner Bros.' iconic IP (e.g., DC, Harry Potter) and production strength, though it has sparked debates over market concentration, employment, and theatrical exhibition.