Netflix has reportedly told Warner Bros. Discovery leadership that it would continue to send movies to theaters, if the streamer acquires the studio, honoring any existing contract obligations. Bloomberg first reported on the update to the ongoing conversations about who will acquire Warner Bros. Discovery.
Netflix has taken its own titles to theaters before, in order to qualify for awards season, starting in 2019. However, for the most part, the company keeps its releases contained to its own platform for viewers to enjoy at home. That has led to many on social media today doubting that Netflix would continue to send Warner Bros. films to theaters after those initial obligations are fulfilled.
Note: Bloomberg has now updated their article, clarifying that Netflix hasn’t made long-term plans for theatrical releases clear and shared this quote from Michael O’Leary, CEO of Cinema United: “Netflix’s apparent agreement to abide by existing contractual obligations that they might inherit says nothing about a meaningful commitment to theatrical exhibition.”
We first heard rumors about Netflix’s interest in buying Warner Bros. Discovery back in September after Netflix Co-CEO Ted Sarandos appeared attended the Crawford–Álvarez fight with WBD leader David Zaslav. The company continued moving forward in October, when it was reported that Netflix brought in Moelis & Co., the investment bank that guided Skydance Media through its successful takeover of Paramount, to assess the feasibility of an offer.
Paramount has also shown interest, sending an unsolicited proposal which was rejected. Paramount then reportedly began coming up with alternative plans for the acquisition, including raising the offer amount, seeking additional financial backing to make a stronger bid, or going above the board and making an appeal directly to the shareholders.
Comcast is another major player showing interest, and has brought in Goldman Sachs and Morgan Stanley to advise on a potential bid for the company’s studio and streaming operations.
At the same time, Warner Bros. Discovery has been moving ahead with plans to split the company into two entities – one for the studio and streaming and one for traditional cable channels.
The initial round of offers are due today, November 20.