Netflix addresses worries regarding the agreement with WBD

Netflix’s $82.7 Billion Bid for Warner Bros. Discovery Sparks Industry Debate

Netflix has made headlines with its recent announcement to purchase Warner Bros. Discovery (WBD) for a staggering $82.7 billion, a move that has stirred considerable unease throughout Hollywood. Many within the industry have voiced apprehension, raising questions about the deal’s potential effects on employment, the future of movie theater releases, and the inclusion of diverse perspectives in film and television.

In response to these concerns, Netflix’s co-CEOs, Greg Peters and Ted Sarandos, addressed employees in a letter that was later shared by Bloomberg. Their message aimed to calm anxieties about the acquisition.

The executives emphasized their intention to continue releasing WBD films in theaters and assured staff that there would be no redundancies or studio shutdowns as a result of the merger.

Peters and Sarandos described the acquisition as a strategic move for expansion, highlighting their goal to reinforce one of Hollywood’s legendary studios, safeguard jobs, and secure a robust future for both film and television production.

Nevertheless, skepticism remains. The Writers Guild of America (WGA) has openly criticized the merger, contending that it breaches antitrust regulations meant to curb monopolistic practices.

The proposed deal has also drawn scrutiny from lawmakers. Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal have formally urged the Justice Department’s Antitrust Division to examine the merger, citing worries about the consequences of such a large-scale consolidation in the entertainment sector.

According to the senators, the merger not only raises ethical dilemmas but could also grant the combined company greater leverage to increase television prices for consumers—an especially pressing issue as many families already grapple with higher living costs. It is worth noting that Netflix implemented a subscription price hike earlier this year.

To address monopoly fears, Peters and Sarandos referenced Nielsen statistics in their letter, claiming that the combined audience share of Netflix and WBD would still fall short of YouTube’s current reach, and would be less than what a potential Paramount-WBD merger could achieve.

This announcement follows closely on the heels of Paramount’s rival bid of $108.4 billion to acquire WBD, underscoring the ongoing battle for supremacy in the media landscape. Although Paramount was initially seen as the leading contender, CNBC has reported that WBD’s board ultimately declined their proposal.