Ted Sarandos and Greg Peters, the co-CEOs of Netflix, aren’t sweating over Paramount’s recent aggressive move to acquire Warner Bros. At a UBS conference in New York, they faced the subject head-on.
Sarandos remarked, “This kind of move was expected. We have a solid deal in place that benefits our shareholders and consumers. It’s a good step for job creation in the entertainment industry.” He expressed confidence that the deal would go through smoothly.
Peters added, “We’re not here to guide regulators on their decisions. They have their work to do. Our focus is on the essential nature of this deal, which benefits consumers. We’re optimistic it will be approved.”
Their session drew significant interest, filling the venue quickly. In a dialogue with UBS analyst John Hodulik, the executives shared that they have no plans to dismantle any part of the company. They plan to operate HBO and the studios as they currently do.
“We’re adding three new businesses that won’t overlap with what we have,” Sarandos explained. “We’re committed to theatrical releases, and we plan to operate these businesses as they are now. This deal opens a new chapter for us.”
He emphasized their intention to uphold the value in their acquisitions. Regarding HBO, he stated, “This brand is cherished, and we want to let it thrive instead of trying to change it into something else.”
Sarandos and Peters pointed out their strategy differs from Paramount’s, which is focusing on consolidating studios. Instead, they see their deal as a way to save jobs rather than cut them.
Interestingly, they shared recent data from Nielsen, showing that Netflix isn’t leading the streaming market. YouTube and Disney are ahead in total viewing time. “If Paramount takes over Warner Bros., they’ll also surpass us,” they noted.
Just hours before, Paramount had launched a hostile bid for Warner Bros., claiming their offer was financially more beneficial for shareholders than Netflix’s deal. They criticized the Netflix proposal, stating it was based on unclear future valuations.
The backdrop of this competition is significant. Recently, it was reported that Sarandos had secretly met with Donald Trump, who described him as “fantastic,” while expressing concerns about the deal. Trump’s son-in-law, Jared Kushner, supports Paramount’s bid.
At the conference, Sarandos talked about ongoing discussions with Trump regarding the entertainment industry’s challenges and the importance of job creation.
As time ran out, Sarandos addressed the audience of investors: “We’re excited about this Warner Bros. deal. It’s beneficial for shareholders, consumers, creators, and the industry. We appreciate your support during complex times, and we believe this deal is straightforward in comparison to our previous challenges.”
In summary, as Netflix navigates a competitive landscape, its leaders remain focused on growth, commitment to jobs, and a strategy that preserves the unique strengths of its acquisitions. For more insights on the evolving media landscape, you might find this report on streaming trends helpful.
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