Arabic version: الرئيس التنفيذي لشركة نتفليكس يبرز مزايا استحواذ وارنر بروس
The co-chief executive of Netflix, Ted Sarandos, has defended the streaming giant’s bid for Warner Bros. against a competing offer from Paramount. In an interview with the BBC, Sarandos emphasized that Netflix’s proposal is centered on growth, stating, “We’re buying a movie studio and a distribution entity that we don’t currently have – we’ll be adding to the market.” According to BBC News, Warner Bros. had previously agreed to a takeover offer from Netflix last December, but Paramount has since made a rival bid.
Warner Bros. has set a deadline for Paramount to submit its “best and final” offer by the end of Monday, ahead of a shareholder vote on Netflix’s deal next month. Netflix’s offer stands at $27.75 a share, totaling $82.7 billion, which includes Warner Bros.’ studio and streaming networks such as HBO Max. In contrast, Paramount’s bid of $30 a share amounts to $108.4 billion and encompasses the entire company, including its traditional pay-TV networks.
Sarandos criticized Paramount’s approach, suggesting that their ownership would lead to a smaller industry. He mentioned that Paramount plans to cut $6 billion immediately and an additional $16 billion thereafter, which he believes would diminish the overall market. “If the Paramount deal were to go through, it would be four [major studios], because basically they’re taking two studios and collapsing them into one,” he stated.
In defending Netflix’s growth strategy, Sarandos pointed to the company’s investments in the UK, where it has created 50,000 jobs and spent $6 billion on original programming since 2020. He asserted that Netflix’s acquisition would foster industry expansion rather than contraction, as he believes Paramount’s proposal would do.
Paramount has contended that its offer provides more certainty for shareholders compared to Netflix’s proposal. They have also committed to covering the $2.8 billion breakup fee that Warner Bros. would owe Netflix if their deal fails. As the competition heats up, both companies remain focused on securing Warner Bros.’ assets.
