Netflix co-CEOs address Hollywood backlash over Warner Bros deal

Netflix co-CEOs Ted Sarandos and Greg Peters have reassured employees that the company’s proposed $82.7 billion acquisition of Warner Bros. Discovery is not a threat to the entertainment industry.

They pushed back on fears that the deal signals the decline of Hollywood, calling it a long-term win for creators, jobs, and audiences.

In a memo to Netflix staff, disclosed through a recent SEC filing, Sarandos and Peters addressed fears surrounding consolidation in the media industry. The executives wrote that similar concerns were raised when Netflix first entered the streaming business and argued that the current deal represents growth rather than contraction.

According to the memo, the acquisition would allow Netflix to expand its capabilities by integrating Warner Bros.’ studio operations, franchises, and content library without overlapping businesses or shutting down studios. The co-CEOs emphasized that the deal is designed to support jobs, strengthen film and television production, and preserve one of Hollywood’s most established studios.

Sarandos and Peters also addressed Paramount Skydance’s hostile bid for Warner Bros. Discovery, describing it as expected while maintaining confidence that Netflix’s agreement will withstand regulatory scrutiny. They stated that the deal is pro-consumer and pro-creator, noting that even after the acquisition, Netflix’s U.S. viewing share would remain behind competitors such as YouTube.

The memo further confirmed Netflix’s commitment to theatrical releases for Warner Bros. films, stating that the studio’s legacy of big-screen premieres will remain intact. While Netflix historically prioritized streaming, the executives said theatrical distribution would become a core part of its business following the acquisition.

Looking ahead, Sarandos and Peters encouraged employees to remain focused on Netflix’s broader goals, stressing that organic growth and audience satisfaction remain top priorities as the deal progresses.