Netflix co-CEO Ted Sarandos is making a strong case for Netflix to acquire Warner Bros. Discovery (WBD), despite ongoing negotiations between the WBD board and Paramount Skydance. Sarandos openly criticizes what he perceives as a "misinformation" campaign by Paramount Skydance, suggesting their tactics are "cheaper to make noise than it is to raise your bid." This vigorous defense comes as the seven-day window for Paramount to present a superior offer to Netflix's $83 billion deal approaches its end on Monday, February 23, 2026.

Netflix has a definitive $83 billion agreement with WBD to acquire Warner Bros.' studios and HBO Max. This deal, signed and unanimously endorsed by the WBD board, is awaiting shareholder approval, with a special meeting set for March 20, 2026. Sarandos expressed satisfaction with WBD's directness and clarity throughout the bidding process, contrasting it with Paramount's approach. He noted that Paramount had "missed every deadline" and lacked clarity on its offers, leading to the seven-day window being granted to bring transparency to WBD shareholders.

Paramount Skydance's repeated attempts to secure an agreement for WBD have been met with rejections from the WBD board. Despite this, Paramount has asserted that its potential deal has cleared antitrust review at the U.S. Justice Department. On February 19, 2026, the 10-day statutory waiting period following Paramount Skydance’s certification of compliance with the DOJ’s December 23, 2025 Second Request for Information under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 expired. However, Netflix's chief legal officer, David Hyman, clarified that this HSR milestone "does not signal DOJ approval nor that any decision has been made," emphasizing that Paramount still needs further approvals. Meanwhile, a group of eight U.S. Democratic senators, led by Sen. Corey Booker, raised concerns about "political interference" in Paramount’s pursuit of WBD, requesting documentation related to any dealings with the Trump administration.

Sarandos outlined his strategic vision for a post-merger Netflix-WBD-HBO, emphasizing a commitment to preserving existing industry practices and fostering growth. He reiterated his "blood oath" to maintain the 45-day theatrical exhibition window for Warner Bros. films, clarifying that Netflix does not compete with time spent in movie theaters but rather sees it as a complementary business that drives enthusiasm for film. Furthermore, he committed to upholding the existing paid download home entertainment window, meaning films would not stream on Netflix or HBO on Day 46, but rather follow traditional PVOD and pay-TV windows.

A key aspect of Netflix's plan is the integration of HBO. Sarandos confirmed that HBO’s pay TV output would remain with HBO, honoring over 100 output deals globally. He envisions HBO continuing as a standalone product, possibly simplifying "HBO Max" back to "HBO," which he believes is a well-respected brand that doesn't need "amplifiers." This vertical merger, according to Sarandos, is about adding assets Netflix doesn't currently possess and leveraging Netflix's balance sheet for continued investment, rather than the horizontal mergers seen with Fox and Disney that typically lead to job cuts and reduced production. He highlighted that 85% of HBO subscribers also subscribe to Netflix, indicating a highly complementary relationship and promising "tremendous value" and potential discounts for consumers.

Addressing regulatory concerns and "misinformation," Sarandos robustly defended Netflix's market position. He cited Nielsen's "The Gauge," which indicates Netflix holds 9% of the business, rising to 10% when combined with HBO, far from any "monopoly" claims often associated with 50-70% market share. Sarandos also firmly positioned YouTube as a significant competitor, contending that it should be included in market share calculations due to its dominance in TV screen viewing, ad dollars, and creator competition. He labeled claims of high market share and "woke content" as "provably wrong information" intentionally spread by Paramount to distract from what Netflix considers its "superior offer."

Sarandos critically analyzed Paramount Skydance’s proposed financial strategy, pointing out that while Paramount cites $6 billion in synergies (cost savings) in their filings, de-leveraging a highly leveraged company (six to seven times levered) to a target of two to three times within 18 months would necessitate cuts amounting to "at least $16 billion." This significant discrepancy, he argued, implies substantial job cuts and fewer productions, directly contradicting Paramount's promise of more production. In contrast, Netflix's track record is about "doing more, about adding more jobs, about more production," aiming to monetize WBD assets better without dismantling them.

The acquisition represents a unique strategic move for Netflix, historically a "build, not buy" company. Sarandos explained that this particular WBD opportunity became attractive because it did not include the linear television assets (cable channels like CNN, TNT) that Netflix did not wish to manage. The coming days are crucial: the seven-day window for Paramount ends on Monday, February 23, 2026, with Netflix having a subsequent four-day period to match any superior offer. The WBD board remains committed to the Netflix agreement and recommends shareholders vote in its favor at the March 20, 2026 meeting, setting the stage for a decisive period in this high-stakes media industry battle.