Streaming giant Netflix's chief executive officers, Greg Peters and Ted Sarandos, have provided detailed justifications for their company's proposed acquisition of Warner Bros Discovery, a move that has been met with a competing, higher offer from Paramount Skydance Corp. On December 5, Netflix announced its agreement to purchase Warner Bros for $82.7 billion, including debt. This offer was swiftly followed three days later by a bid from Paramount, valuing the entire studio at $108.4 billion and encompassing units, such as cable news, that Netflix does not intend to acquire.

In a letter to employees on December 15, Peters and Sarandos directly addressed prevalent industry concerns regarding potential job losses and the future of theatrical releases under Netflix's ownership. The executives reiterated their commitment to releasing Warner Bros movies in cinemas, despite earlier allegations that Netflix would prioritize a streaming-first model. Sarandos had previously described going to the theatre as an “outdated” experience. The co-CEOs clarified their past stance, stating, “We haven’t prioritised theatrical in the past because that wasn’t our business at Netflix. When this deal closes, we will be in that business.”

Addressing fears of job reductions in an industry already impacted by the rise of streaming and artificial intelligence, the Netflix leaders pledged “no overlap or studio closures.” They positioned the acquisition as a catalyst for growth, writing, “This deal is about growth. We’re strengthening one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production.”

The Netflix CEOs acknowledged Paramount's hostile bid as entirely expected, stating, “But, we have a solid deal in place,” as they work towards finalizing their original agreement. They also expressed confidence in securing regulatory approval for the deal. Peters and Sarandos cited Nielsen data to argue that a Netflix-Warner Bros partnership would result in a smaller viewer share compared to rivals like YouTube or a hypothetical Paramount-Warner Bros combination. They concluded that “The fundamentals are clear: this deal is pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth.”

However, the proposed acquisitions have drawn scrutiny from lawmakers. Democratic Senator Elizabeth Warren of Massachusetts previously labeled Netflix’s offer an “anti-monopoly nightmare,” and subsequently referred to Paramount’s offer as a “five-alarm antitrust fire.” If Netflix’s deal is ultimately approved, it would mark one of the largest media transactions in history, granting Netflix control over one of Hollywood’s oldest and most renowned studios, including HBO, which once served as an inspiration for the company.