Netflix Boss Defends $82.7bn Warner Bros Bid as Paramount Deadline Nears

Netflix Boss: The chief executive of Netflix has publicly defended the company’s multi-billion-dollar bid to acquire major assets from Warner Bros. Discovery, arguing that the deal would drive industry growth rather than shrink competition.

Speaking to the BBC, Netflix co-CEO Ted Sarandos said the streaming giant’s proposal would expand both its business and the broader entertainment market. His remarks come as Paramount Global faces a deadline to submit a “best and final” offer for Warner Bros ahead of a shareholder vote next month.

Competing Billion-Dollar Offers

Netflix has offered $27.75 per share — valuing the deal at approximately $82.7bn — for Warner Bros’ studio and streaming assets. The proposed acquisition includes well-known brands such as Warner Bros., New Line Cinema, and HBO Max. Under the plan, the remaining portions of Warner Bros would be spun off into a separate independent company.

Paramount, however, has tabled a higher offer of $30 per share, amounting to $108.4bn, for the entire company — including its traditional pay-TV networks, which analysts often describe as a declining segment of the media business.

Warner Bros has reportedly given Paramount until the end of Monday to submit its final proposal before shareholders vote on the Netflix agreement.

“This Is Growth”

Sarandos argued that Netflix’s offer represents strategic expansion rather than consolidation.

“We’re buying a movie studio and a distribution entity that we don’t currently have,” he said. “We’ll be adding to the market.”

According to Sarandos, if Paramount’s bid succeeds, it could reduce the number of major Hollywood studios. “There are five major studios left in Hollywood. If the Paramount deal were to go through, it would effectively become four,” he said, suggesting that Paramount’s approach would combine two studios into one and potentially shrink the industry.

He further claimed that Paramount has pledged significant cost-cutting measures if its acquisition goes through, including billions in reductions that could impact jobs and production.

Paramount has previously maintained that its offer provides greater certainty for shareholders. It has also offered to pay the $2.8bn break-up fee Warner Bros would owe Netflix if the original deal collapses.

Investment and Global Expansion

Sarandos highlighted Netflix’s global investment record as evidence of its growth strategy. He pointed to the company’s spending in the United Kingdom, saying Netflix has invested $6bn in UK original programming since 2020 and supported around 50,000 jobs.

He described the Warner Bros deal as “a spectacular opportunity at a price,” declining to speculate on whether Netflix would increase its offer if Paramount raises its bid.

Political and Industry Pushback

The proposed takeover has drawn political and industry scrutiny.

Former US President Donald Trump recently suggested Netflix could “face consequences” if it did not remove Democratic board member Susan Rice. Sarandos dismissed the remarks, describing the acquisition as “a business deal, not a political deal.”

Meanwhile, filmmaker James Cameron, known for directing Avatar and Titanic, has reportedly written to US competition regulators warning that the merger could harm the cinema industry.

Sarandos rejected that criticism, arguing that Netflix and cinemas serve complementary audiences rather than competing ones. He noted that while the average American visits the cinema twice a year, Netflix subscribers watch several films monthly at home.

High-Stakes Decision Ahead

With the shareholder vote approaching and Paramount’s final bid deadline imminent, the future ownership of Warner Bros remains uncertain.

The outcome could reshape the global entertainment landscape — influencing the number of major Hollywood studios, the balance between streaming and traditional media, and the scale of investment in film and television production worldwide.

For now, Netflix is positioning its bid as a growth-driven expansion, while Paramount frames its proposal as a more comprehensive and financially secure alternative. The decision ultimately lies with Warner Bros shareholders.

Source: BBC.com

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