In a move to calm internal anxieties, Netflix Inc.'s top executives have directly addressed employee concerns regarding the streaming giant's monumental bid for a significant portion of Warner Bros. Discovery Inc. Co-Chief Executive Officers Greg Peters and Ted Sarandos emphasized that the proposed acquisition would not lead to studio shutdowns or significant job cuts due to a lack of business overlap.
The Battle for a Hollywood Icon
The corporate drama centers on Netflix's $82.7 billion offer for Warner Bros.' streaming and studio assets, a deal already agreed to by the Warner Bros. board. However, the landscape shifted dramatically when Paramount Skydance Corp. launched a hostile $108 billion bid for the entire company. The Warner Bros. board is anticipated to respond to Paramount's unsolicited offer by the end of the week, with Paramount signaling this may not be its final proposal.
In a letter posted on the company's internal blog and filed with securities regulators, Peters and Sarandos acknowledged the complexity ahead. "This is going to be a complex process over the next year or so," the executives stated, framing the deal as a growth opportunity rather than a consolidation leading to cuts.
Addressing Industry-Wide Concerns
The leadership team specifically sought to quell fears about job losses in an industry already grappling with the disruptive rise of streaming platforms and artificial intelligence. They made a firm promise of "no overlap or studio closures" amid the mega-deal discussions.
"This deal is about growth," Peters and Sarandos wrote. "We're strengthening one of Hollywood's most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production." A key point of reassurance was their commitment to theatrical releases for Warner Bros. films, addressing concerns that Netflix would apply its streaming-first model to the historic studio.
"We haven't prioritized theatrical in the past because that wasn't our business at Netflix," the co-CEOs explained. "When this deal closes, we will be in that business." This marks a significant strategic shift for Netflix, which would gain control of HBO, a network it has often cited as an inspiration.
Regulatory Hurdles and Market Reactions
The fierce battle for Warner Bros. is expected to face intense regulatory scrutiny. Netflix executives expressed confidence, stating, "We're confident we'll get the approvals we need to make it happen. The fundamentals are clear: this deal is pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth." They cited Nielsen data suggesting a combined Netflix-Warner Bros. entity would have a smaller share of U.S. TV view time than YouTube or a potential Paramount-Warner Bros. merger.
However, the deal has drawn political fire. Democratic Senator Elizabeth Warren of Massachusetts previously labeled Netflix's bid an "anti-monopoly nightmare" and has called Paramount's rival offer a "five-alarm antitrust fire."
Financial analysts are watching closely. Alex Fitch, a fund manager at Harris Associates—which holds a $2.85 billion stake in Warner Bros.—speculated on a potential higher bid from Paramount. "I would not be surprised to see a higher bid from Paramount, and I think there would be a good case for a $33-per-share offer," Fitch said, estimating the linear cable assets like CNN and TNT could be worth up to $3.50 per share.
If successful, Netflix's acquisition would represent one of the largest media deals in history, placing one of Hollywood's oldest studios under the control of its dominant streaming disruptor.
