Netflix’s co-CEOs want to assure staffers that its bid to acquire Warner Bros. Discovery’s key assets will be good for the company — and for jobs across Hollywood.
In a letter sent to staffers on Monday, a copy of which was also filed publicly with the Securities and Exchange Commission, Greg Peters and Ted Sarandos said a combined Netflix-Warner Bros. is “pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth.”
“We see this as a win for the entertainment industry, not the end of it,” the Netflix co-CEOs wrote, addressing concerns that the combo of the streaming giant and one of the most iconic studios could bring about “the end of Hollywood.”
Netflix this month announced its intention to acquire Warner Bros. Discovery’s streaming and studio assets for an equity value of $72 billion, which would be the biggest acquisition in the streamer’s history.
Rival Paramount Skydance responded days later with a hostile bid to acquire all of WBD in a deal valued at around $108 billion.
Peters and Sarandos addressed the hostile bid in the letter, saying it was to be expected but that Netflix has 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,” they wrote.
The letter reiterated Netflix’s previous arguments for why it’s the best bidder for the WBD assets. Its bid faces strong opposition in parts of Hollywood, where many have long harbored suspicions toward Netflix because of its business model that has upended traditional film and TV conventions.
In particular, Netflix has favored a streaming-first distribution approach and has a practice of putting its movies in theaters for limited runs only. This has created tension with some big-name talent and movie theater owners. Sarandos previously said long, exclusive theatrical windows weren’t “consumer-friendly,” and that he thinks, over time, theatrical windows will continue to shrink.
In terms of regulatory approval, both bidders have made the case that they have the clearest path to getting a deal through. Paramount chief David Ellison has said its combo would lead to less market concentration in streaming than Netflix’s.
Netflix, for its part, wants regulators to compare its market share to total TV watching time, including free platforms like YouTube. The co-CEOs emphasized this in a letter. They say Netflix plus Warner Bros. would only be 9% of the US market, behind YouTube and Disney. Paramount’s argument is that the market should be defined by paid streaming, which is growing and where Netflix stands to expand its dominance.
A wild card is President Donald Trump. David Ellison and his father, Oracle billionaire Larry Ellison, are close to Trump, whereas Sarandos has long-standing ties to prominent Democrats. Still, Trump has publicly praised both Netflix and Sarandos. Trump also said that a combo of Netflix and Warner Bros. “could be a problem” due to the size, however.
When it comes to jobs, Netflix has lobbied Trump that it would be a job saver, not a job killer, since it wouldn’t be combining two big studios like Paramount would. Some key numbers to look at are the planned “synergies,” which often translate in part to job cuts. Paramount estimated $6 billion, compared to Netflix’s $2 billion to $3 billion.
Read the letter from Netflix co-CEOs Greg Peters and Ted Sarandos to staffers in full below:
OUR DEAL WITH WARNER BROS
By: Greg Peters and Ted Sarandos
As news around our deal with Warner Bros. continued this week, we wanted to keep you as informed as we can. Our position hasn’t changed: we strongly believe that Netflix and Warner Bros. joining forces will offer consumers more choice and value, allow the creative community to reach even more audiences with our combined distribution, and fuel our long-term growth. We made this deal because their deep portfolio of iconic franchises, expansive library, and strong studio capabilities will complement—not duplicate—our existing business.
This is going to be a complex process over the next year or so and there’s a lot we won’t be able to share, but we did want to give you our thoughts on some of the most pressing questions we’ve heard since we connected last week.
How do we feel about Paramount’s hostile bid? 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.
Are we confident regulators will approve? We believe in this deal—in the value it creates— and we’re confident we’ll get the approvals we need to make it happen. 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%). We believe the facts speak for themselves, and we’re fully prepared to put ourselves in a strong position for approval.
Netflix SEC filing
Will we preserve theatrical releases as part of WBD’s distribution model? Yes—we’re fully committed to releasing Warner Bros. movies in theaters, just as they do today. Theatrical is an important part of their 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. 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.
Some feel this is the end of Hollywood. What’s our response to that? 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.
What’s next? We’ve got a small but mighty team of experts working on this so the rest of us can stay focused on the big 2026 ambitions we’ve established for our business. 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.
Where is the best place to follow along? As a reminder, Take 5 is for employees only. We’ve launched a public site as our source of truth for external audiences—which will be updated further—and it’s a resource you can share with friends and family who might have their own questions. You can also listen to our UBS webcast from earlier this week.
-Greg and Ted
