Netflix co-CEOs Ted Sarandos and Greg Peters answered some frequently asked questions from staffers regarding Warner Bros. Discovery, insisting the $82.7 billion deal is “not the end” of the entertainment industry.
“This is something that we’ve heard for a long time — including when we started the streaming business. Our stance then and now is the same — we see this as a win for the entertainment industry, not the end of it,” they wrote in a staff memo, shared in a newly released SEC filing. “This deal is about growth: Warner Bros. brings businesses and capabilities we don’t have, so there’s no overlap or studio closures. We’re strengthening one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production.”
“We’re 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’t want to change what makes Warner Bros. so valuable,” the pair continued. “If this deal had happened two years ago, hits like ‘Minecraft’ and ‘Superman’ would still have premiered on the big screen as they did — and that’s how we plan to keep it. We haven’t prioritized theatrical in the past because that wasn’t our business at Netflix. When this deal closes, we will be in that business.”
Sarandos had previously confirmed Netflix would still be supporting WB’s movie theater output, though he noted the release windows will evolve.
Naturally, the executives also touched upon Paramount’s hostile bid for WBD, reiterating their confidence in Netflix’s eventual regulatory approval.
“It was entirely expected. But, we have a solid deal in place. It’s great for our shareholders, great for consumers, and a strong way to create and protect jobs in the industry,” Sarandos and Peters shared. “We’re confident we’ll get it over the finish line — and we’re genuinely excited about what’s ahead.”
