Netflix CEOs Stand Firm on Warner Bros. Acquisition, Vow to Keep Movies in Theaters

Netflix co-CEOs Ted Sarandos and Greg Peters are standing firm on their company’s acquisition of Warner Bros. and HBO Max, insisting the deal will survive a rival bid and continue to support movie theaters.

The executives shared their stance in a memo to Netflix employees, which was disclosed in a recent SEC filing.

Netflix announced its $82.7 billion deal to buy Warner Bros., HBO, and HBO Max on December 5. Shortly after, Paramount Skydance, led by David Ellison, made a hostile offer of $30 per share, valuing Warner Bros. Discovery at $108.4 billion, and took the bid directly to shareholders.

Sarandos and Peters reassured Netflix staff that the company’s deal remains strong. “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. We’re confident we’ll get it over the finish line — and we’re genuinely excited about what’s ahead,” the memo read. The internal note was published on Netflix’s Take 5 blog, a platform for employees to get quick updates on strategic issues.

Addressing concerns that the acquisition could harm Hollywood, the executives emphasized the deal’s benefits for 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. 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,” they wrote.

The memo also confirmed that Netflix plans to continue releasing Warner Bros. films in theaters. “Theatrical is an important part of [the Warner Bros.] business and legacy, and we don’t want to change what makes Warner Bros. so valuable. 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,” Sarandos and Peters explained.

Netflix executives reiterated confidence in securing the necessary regulatory approvals. They noted that even after combining with Warner Bros., Netflix’s U.S. market share would only increase slightly, remaining below YouTube and a potential Paramount/WBD merger. “We believe the facts speak for themselves, and we’re fully prepared to put ourselves in a strong position for approval,” the memo stated.

Looking ahead, Sarandos and Peters said a small team is handling the acquisition so the rest of Netflix can focus on 2026 growth goals. “We’ve got huge potential still ahead of us — even before we factor in Warner Bros. — so our focus should remain on realizing that potential based on our organic growth. We know that’s easier said than done with all the headlines and speculation, but continuing to deliver for our members is the best thing we can focus on,” they wrote.

The memo, posted through Netflix’s Take 5 blog, provides a glimpse into the company’s strategy and confidence as it navigates one of the biggest deals in streaming history.

Have something to add? Let us know in the comments!