Netflix Reacts to Paramount’s ‘Expected’ Warner Bros. Takeover Bid

Netflix directly addressed Paramount’s hostile takeover attempt of Warner Bros., with co-CEOs Ted Sarandos and Greg Peters stating they anticipated it. The executives outlined why they believe their acquisition plan will hold.

How did Netflix respond to Paramount’s takeover bid?

At a packed UBS conference in New York, Netflix co-CEOs Ted Sarandos and Greg Peters expressed calm assurance in the face of Paramount’s aggressive move. Sarandos dismissed the rival bid as a predictable development in the merger process.

“Today’s move was entirely expected,” Sarandos stated. He quickly pivoted to champion Netflix’s own agreement, adding, “We have a deal done, and we are really happy with the deal for shareholders, for consumers, it’s a great way to create and protect jobs in the entertainment industry. We’re super confident we are going to get it across.”

Netflix’s response was multifaceted, combining public confidence with strategic arguments aimed at regulators, shareholders, and the industry. The executives emphasized their deal’s consumer and economic benefits while drawing clear contrasts with Paramount’s approach. Peters addressed potential regulatory scrutiny, stating, “I think we want to start by saying it’s not our position to tell the regulators how to think about this.” He expressed faith that officials would approve the merger, concluding, “At the end of the day, it’s pro-consumer.”

A major part of Netflix’s rebuttal involved outlining its plans for Warner Bros. assets, promising stability and investment. Sarandos stated that they are committed to maintaining Warner Bros.’ theatrical film division. “We didn’t buy this company to destroy that value,” he affirmed.

Regarding HBO, Sarandos suggested the brand would be freed to return to its prestige roots. “We want HBO to double down on the things that people have loved for 50 years,” he said. Basically, positioning Netflix as the platform that can allow HBO to specialize.

As the session closed, Sarandos made a direct appeal to the financial community, reinforcing confidence. “We think this deal for Warner Bros., is good for shareholders… good for consumers… good for creators,” he said. (via The Hollywood Reporter)