Netflix recently announced its plan to buy Warner Bros Discovery (WBD) for $82.7 billion.
Many people in the industry are worried about what the deal could mean for jobs, movie theatres, and creative freedom.
To calm these fears, Netflix co-CEOs Greg Peters and Ted Sarandos sent a letter to employees.
Netflix recently announced its plan to acquire Warner Bros Discovery (WBD) for $82.7 billion. Many people in the industry are worried about what the deal could mean for jobs, movie theaters, and creative freedom, reports TechCrunch. To calm these fears, Netflix co-CEOs Greg Peters and Ted Sarandos sent a letter to employees explaining why the company believes the deal would be positive. In the letter, which was shared publicly by Bloomberg, Peters and Sarandos promised that Warner Bros movies would still be released in theaters. The co-CEOs also said there would be “no overlap or studio closures.”
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The executives described the acquisition as a chance to expand, not cut back. They wrote that the “deal is about growth” and said Netflix is “strengthening one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production.”
Even with these promises, opposition remains strong. The Writers Guild of America (WGA) has spoken out against the deal, saying it could break antitrust laws meant to prevent monopolies.
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Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal also sent a letter to the Justice Department’s Antitrust Division showing their concerns. They warned that a combined Netflix and WBD could have “more market power than the current companies to raise consumers’ television costs.”
To answer monopoly concerns, Peters and Sarandos pointed to Nielsen data. They argued that a combined Netflix and WBD would still have a smaller share of viewers than YouTube, or even a possible merger between Paramount and WBD. Paramount reportedly recently made a larger $108.4 billion bid for WBD. However, CNBC reported that WBD’s board turned down Paramount’s offer.
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Ayushi Jain
Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile
