Netflix CEO Ted Sarandos Counters Paramount’s Hostile Bid

Netflix co-CEOs Ted Sarandos and Greg Peters recently addressed concerns surrounding Paramount’s hostile bid for Warner Bros. during a conference at UBS in New York. Their discussion emphasized confidence in Netflix’s ongoing acquisition plans despite increased competition.

Overview of the Hostile Bid

Paramount, under CEO David Ellison, launched a tender offer targeting Warner Bros. The bid seeks to remove the company from Netflix’s control. Paramount asserts its offer provides $18 billion more in cash compared to Netflix’s acquisition deal.

Confidence in the Acquisition

Sarandos and Peters articulated their assurance about securing regulatory approval for Netflix’s deal. “Today’s move was entirely expected,” Sarandos stated, highlighting the benefits of the acquisition for shareholders and consumers. They emphasized that the deal would preserve jobs in the entertainment sector.

Strategic Business Plans

• Netflix intends to maintain current operations at Warner Bros. and HBO.
• Sarandos stressed a commitment to theatrical releases, noting the acquisition adds significant capabilities to their distribution model.
• He assured that they do not plan to eliminate any existing business values but rather enhance them.

While discussing HBO’s prestige brand, Sarandos mentioned a shift away from general entertainment branding and a return to the fundamentals that have been loved for decades.

Market Insights and Streaming Landscape

In their remarks, the executives challenged the perception of Netflix as a market leader. They presented Nielsen data showing Netflix trailing behind competitors such as YouTube and Disney in viewer engagement.

Political Context and Industry Discussion

Adding an unusual dimension to the discussion, Sarandos mentioned a secret meeting with former President Trump, who had expressed interest in the deal’s potential job creation in America. This political connection could influence perceptions of Netflix’s strategic moves.

Conclusion

As the conference concluded, Sarandos reaffirmed their excitement about acquiring Warner Bros., positioning it as an opportunity for growth within the entertainment industry. “We think this deal is good for shareholders, consumers, and creators,” he noted.