Netflix Co-CEOs Ted Sarandos and Greg Peters recently issued an internal memo to company employees, addressing the proposed acquisition of Warner Bros. Pictures, HBO, and HBO Max for an enterprise value of $82.7 billion. The memo directly confronted external skepticism and competitive challenges, with both executives emphasizing that the deal is not, as some speculate, the end of Hollywood, but rather a new wave of growth for the entertainment industry.
The memo noted that recent hostile takeover attempts by Paramount and Skydance Media were "entirely expected," but Netflix has a solid agreement with Warner Bros. Discovery and remains confident in the deal's completion. The two CEOs stated that this acquisition is beneficial for both shareholders and consumers, and will also help create and protect jobs within the film and television industry. Netflix expressed high optimism about the successful conclusion of the transaction.
Addressing regulatory concerns, Sarandos and Peters further explained in the memo that, from a data perspective, even after merging with Warner Bros., Netflix's overall viewing market share in the U.S. would remain below its main competitors. They argued that the deal inherently promotes competition and innovation.
They stressed that this is a "pro-consumer, pro-creator, and pro-labor" growth-oriented transaction that would not lead to a monopolistic impact on the market structure.
The potential impact on theatrical distribution was another key area of external concern. In response, Netflix executives explicitly committed to maintaining Warner Bros. films' theatrical release model in the future, respecting its long-standing industry value and cultural legacy. The duo pointed out that had this deal been completed years ago, many major commercial films in recent years would still have premiered on the big screen, and this will be the established direction going forward.
Addressing the question of whether "streaming platforms are ending Hollywood," the memo directly stated that similar sentiments have existed since Netflix first entered the streaming arena. Yet, over the years, the film and television industry has not shrunk but rather continued to expand. Netflix believes that Warner Bros.' classic IPs, production capabilities, and studio system perfectly complement Netflix's own shortcomings, and that the combination of the two will strengthen, not weaken, Hollywood's creative ecosystem.
Netflix stated that it has established a dedicated team to handle deal-related matters, while other employees will remain focused on the company's established 2026 development goals. Amid intense public scrutiny and media speculation, Netflix still wants employees to focus on continuing to provide content and services to global audiences, viewing this acquisition as a crucial step towards the next phase of growth.
via： Variety