In a recent interview, Netflix co-CEO Greg Peters voiced strong objections to Paramount Skydance’s ambitious $108 billion hostile bid for Warner Bros. Discovery, labeling the offer as unrealistic unless backed by substantial financial support, particularly from Oracle Corp founder Larry Ellison. Peters emphasized that Paramount’s proposal is heavily reliant on debt and external funding, rendering it far more precarious compared to Netflix’s own all-cash offer of $82.7 billion for Warner’s film and television assets, which include powerhouse brands like HBO and Warner Bros.
Peters expressed concerns over the additional leverage necessary for Paramount’s bid, describing it as “pretty crazy” and ultimately unsustainable. As Paramount struggles to garner support directly from Warner Bros. Discovery shareholders—having secured only about 7% of shares so far—the path forward for its bid appears increasingly rocky.
The potential merger between Netflix and Warner Bros. Discovery presents a significant shift in Hollywood dynamics, combining iconic franchises like “Game of Thrones” and “Harry Potter” with Netflix’s successful series such as “Stranger Things” and “Squid Game.” This possibility has raised alarms among filmmakers, unions, and theater owners who fear the impact Netflix’s growing influence could have on traditional theatrical releases. Peters has attempted to assuage these concerns by assuring that Netflix would maintain Warner Bros.’ typical 45-day theatrical window, emphasizing the platform’s commitment to honoring cinema experiences.
Furthermore, the competitive landscape is evolving, as Peters pointed out that Netflix measures its market presence against a variety of players like YouTube, Amazon, and Apple. Currently, Netflix holds less than 10% of TV viewing hours in most markets, reflecting a broader media environment that requires constant adaptation.
As both bids are assessed, regulators in the U.S. and Europe are likely to scrutinize the implications on market competition and consumer choice. The stakes are high, and the outcome will undoubtedly shape the future of entertainment, with hopes that a merger could lead to innovative collaborations and enhanced content for viewers.