Netflix seeks to reassure stakeholders as Warner Bros. deal faces scrutiny

Netflix’s co-chief executives have issued a letter to reassure stakeholders about the company’s proposed $72 billion acquisition of Warner Bros., addressing concerns within the entertainment industry about the potential impact on jobs, output and competition.

The note, filed with the US Securities and Exchange Commission by Greg Peters and Ted Sarandos, stated that a merged Netflix–Warner entity “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.”

The update comes as Paramount has submitted a hostile counteroffer valued at $78 billion, which also includes Warner Bros. Discovery’s cable networks such as CNN and Discovery. Paramount has taken its proposal directly to shareholders, citing limited engagement from Warner Bros. Discovery during weeks of discussion.

Industry guilds have voiced concern about the Netflix offer, warning that consolidation may lead to fewer commissions and reduced employment. “We’ve seen this movie before, and we know how it ends,” Writers Guild of America West president Michele Mulroney said, adding that it is difficult to imagine two large studios maintaining current levels of content production if combined.

Netflix’s share price has fallen 15% over the past month as questions persist about the feasibility of the bid. Peters and Sarandos, however, argued that the transaction is “pro-consumer, pro-innovation, pro-worker, pro-creator, and pro-growth,” citing Nielsen data suggesting the combined company would represent 9% of total television usage in the US.

They also acknowledged Paramount’s hostile bid and maintained that Netflix believes it has “a solid deal in place.” The executives expressed confidence about securing government approvals despite comments from President Trump suggesting Netflix’s market position “could be a problem.”

The proposed acquisition will require clearance from the US Department of Justice, marking another stage in what is expected to be a lengthy regulatory process.