Netflix co-CEOs Greg Peters and Ted Sarandos have addressed some concerns about the company’s upcoming deal to acquire Warner Bros. Discovery for $82.7 billion in a letter sent to employees.
The letter, shared by Business Insider, reiterates Netflix’s commitment to releasing Warner Bros. films in theaters, writing “We haven’t prioritized theatrical in the past because that wasn’t our business at Netflix. When this deal closes, we will be in that business.” Peters and Sarandos told employees they don’t intend for this deal to mean the end of movie studios in favor of streaming, promising “no overlap or studio closures.”
The letter also addressed Paramount’s announcement that it will make a hostile bid for Warner Bros. Discovery after having its offer rejected in favor of the Netflix deal. Just after Paramount sent out a press release about its plans, claiming that the Netflix deal isn’t in the best interest of shareholders, Sarandos spoke at a UBS media conference, saying that he’s “super confident” his own company’s deal will go through. In the letter to employees, the co-CEOs wrote that they expected Paramount’s response but that they feel the Netflix deal is “great for our shareholders, great for consumers, and a strong way to create and protect jobs in the industry.”
Read the letter sent by Netflix co-CEOs Greg Peters and Ted Sarandos to employees, below.
OUR DEAL WITH WARNER BROS
As news around our deal with Warner Bros. continued this week, we wanted to keep you as informed as we can. Our position hasn’t changed: we strongly believe that Netflix and Warner Bros. joining forces will offer consumers more choice and value, allow the creative community to reach even more audiences with our combined distribution, and fuel our long-term growth. We made this deal because their deep portfolio of iconic franchises, expansive library, and strong studio capabilities will complement—not duplicate—our existing business.
This is going to be a complex process over the next year or so and there’s a lot we won’t be able to share, but we did want to give you our thoughts on some of the most pressing questions we’ve heard since we connected last week.
How do we feel about Paramount’s hostile bid? It was entirely expected. But, we have a solid deal in place. It’s great for our shareholders, great for consumers, and a strong way to create and protect jobs in the industry. We’re confident we’ll get it over the finish line—and we’re genuinely excited about what’s ahead.
Are we confident regulators will approve? We believe in this deal—in the value it creates— and we’re confident we’ll get the approvals we need to make it happen. The fundamentals are clear: this deal is pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth. Also, if you look at it through the lens of Nielsen data, even after combining with Warner Bros., our view share would only move from 8% to 9% in the US—still well behind YouTube (13%) and a potential Paramount/WBD combination (14%). We believe the facts speak for themselves, and we’re fully prepared to put ourselves in a strong position for approval.
Will we preserve theatrical releases as part of WBD’s distribution model? Yes—we’re fully committed to releasing Warner Bros. movies in theaters, just as they do today. Theatrical is an important part of their business and legacy, and we don’t want to change what makes Warner Bros. so valuable. If this deal had happened two years ago, hits like Minecraft and Superman would still have premiered on the big screen as they did—and that’s how we plan to keep it. We haven’t prioritized theatrical in the past because that wasn’t our business at Netflix. When this deal closes, we will be in that business.
Some feel this is the end of Hollywood. What’s our response to that? This is something that we’ve heard for a long time—including when we started the streaming business. Our stance then and now is the same—we see this as a win for the entertainment industry, not the end of it. This deal is about growth: Warner Bros. brings businesses and capabilities we don’t have, so there’s no overlap or studio closures. We’re strengthening one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production.
What’s next? We’ve got a small but mighty team of experts working on this so the rest of us can stay focused on the big 2026 ambitions we’ve established for our business. We’ve got huge potential still ahead of us—even before we factor in Warner Bros.—so our focus should remain on realizing that potential based on our organic growth. We know that’s easier said than done with all the headlines and speculation, but continuing to deliver for our members is the best thing we can focus on.
Where is the best place to follow along? As a reminder, Take 5 is for employees only. We’ve launched a public site as our source of truth for external audiences—which will be updated further—and it’s a resource you can share with friends and family who might have their own questions. You can also listen to our UBS webcast from earlier this week.
-Greg and Ted