Home / Business and Economy / Netflix CEO Defends Warner Bros Deal Amid Takeover Battle
Netflix CEO Defends Warner Bros Deal Amid Takeover Battle
23 Feb
Summary
- Netflix CEO argues its Warner Bros deal will foster industry growth.
- Paramount's potential acquisition could lead to industry contraction.
- Warner Bros urged Paramount to submit its best and final offer.
Netflix CEO Ted Sarandos has defended the company's £60 billion offer to acquire portions of Warner Bros, including its studio and distribution networks. He stated that this deal signifies 'growth' for the industry, a stark contrast to the potential outcome under rival Paramount.
Sarandos argued that a Paramount victory in the takeover battle would lead to industry contraction, as Paramount has committed to cutting $6 billion from the business. He further noted that Paramount's acquisition would consolidate two major studios, reducing Hollywood's major players from five to four.
Warner Bros has reportedly urged Paramount to present its 'best and final offer' by a recent deadline, even as its board had previously backed Netflix's acquisition. Netflix granted Warner Bros a seven-day waiver to negotiate with Paramount, calling Paramount's actions a 'distraction'.
Paramount's bid has reportedly increased, potentially exceeding $31 per share, and includes Warner's cable channels like CNN and the Discovery+ streaming service. Despite this, Warner Bros' board continues to recommend the Netflix sale, valued at $27.75 per share.
