Netflix leadership lays out case for Warner Bros Discovery deal

In a memo to employees this week, Peters and Sarandos described their planned acquisition of Warner Bros Discovery (WBD) as “a win for the entertainment business.”

The executives set out their case for the acquisition amid widespread concern of job losses and the negative impact on cinemas if the deal goes ahead. It comes amid growing concerns of heavy regulatory scrutiny.

In their memo, Peter and Sarandos argued the Netflix 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.”

The hostile bid from Paramount was “entirely expected,” they stated, adding they were confident the Netflix deal would get over the finish line.

“The fundamentals are clear: this deal is pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth. Also, if you look at it through the lens of Nielsen data, even after combining with Warner Bros., our view share would only move from 8% to 9% in the US – still well behind YouTube (13%) and a potential Paramount/WBD combination (14%).”

They added that they made the deal because of WBD’s “deep portfolio of iconic franchises, expansive library, and strong studio capabilities will complement – not duplicate – our existing business.”

The execs said they would be “fully committed” to preserving theatrical releases as part of WBD’s distribution model, despite concerns that Netflix would prioritise streaming releases. “We haven’t prioritised theatrical in the past because that wasn’t our business at Netflix. When this deal closes, we will be in that business,” said Peters and Sarandos.

Netflix posted $10.5bn in revenue in the first three months of 2025, marking the first quarter it hasn’t disclosed quarterly subscriber figures. Discover more here.