In a letter to company employees sent today, Netflix executives confirmed they have not changed their position on the bid for Warner Bros Discovery. The comments from Netflix co-CEOs Greg Peters and Ted Sarandos come amid tension with Paramount Skydance following the company’s hostile counter-bid.
In the letter, the co-CEOs stated that the deal was ‘entirely expected’ and emphasized that Netflix remains committed to theatrical releases of Warner Bros’ movies, considering it ‘an important part of their business and legacy.’
“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,” the letter stated.
On December 5th, Netflix announced a deal to acquire Warner Bros Discovery’s studio and streaming assets through a combination of cash and stock, valued at $27.75 per share, or $72 billion.
The deal came as a shock to the industry because it followed Paramount’s months-long effort to acquire Warner Bros. Discovery in its entirety.
Last week, Paramount Skydance CEO David Ellison said his company’s goal was to “finish what we started,” following a counter bid of an all-cash offer at $30 per share.
“We’re sitting on Wall Street, where cash is still king. We are offering shareholders $17.6 billion more cash than the deal they currently have signed up with Netflix, and we believe when they see what it is currently in our offer that that’s what they’ll vote for,” Ellison said.
Following Netflix’s offer, Co-CEO Ted Sarandos said, “In the offer that Paramount was talking about today, they also were talking about $6 billion of synergies. Where do you think synergies come from? Cutting jobs. So we’re not cutting jobs, we’re making jobs.”
By CEO NA Editorial Staff
