Netflix Eyes Warner Bros. Discovery in $83B Deal

Netflix co-CEO Ted Sarandos is making a strong case for Netflix to acquire Warner Bros. Discovery (WBD) in an $83 billion deal. Sarandos has publicly criticized the competing offer from Paramount/Skydance, led by David Ellison, calling it "misinformation." He suggests Paramount's efforts are a tactic to create noise rather than a genuine superior bid. Netflix's proposed acquisition includes commitments to preserving the 45-day theatrical exhibition window and the existing paid download home entertainment window.

WBD's board is currently in renewed negotiations with Paramount/Skydance, which has a seven-day window to present a better offer than Netflix's. Sarandos expressed confidence in Netflix's deal, which has unanimous board approval and awaits shareholder sign-off. He highlighted a lack of clarity in Paramount's offer compared to Netflix's straightforward $27.75 per share plus Discovery Global value. Both deals face significant regulatory scrutiny.

Sarandos addressed concerns about market concentration, refuting claims of a monopoly by citing Nielsen data showing Netflix and HBO together hold only 10% of the market. He emphasized Netflix's long-standing competition with YouTube for viewer attention and advertising dollars. Netflix's acquisition strategy is described as "build, not buy," but this deal represents a unique opportunity to acquire assets separate from linear TV channels, making it attractive.