Netflix co-CEO Ted Sarandos is leading the charge to close an $83 billion deal for Warner Bros. Discovery's main assets. This comes as Warner Bros. rejected a fresh bid from important and David Ellison's Skydance but gave them until February 23 to submit a best and final offer. The Netflix Warner Bros deal hangs in the balance with shareholders set to vote on March 20. Sarandos testified before senators this month. He aims to calm fears over jobs, theaters, and prices. Rivals like James Cameron call it a disaster. But Netflix says it will grow the business.
Key Takeaways
- Netflix plans to buy Warner Bros. studios, HBO Max, and core entertainment for $83 billion after spinning off cable networks like CNN into Discovery Global.
- Warner Bros. turned down important's $108.4 billion cash bid but allows a final offer by Feb. 23; shareholders vote on Netflix deal March 20.
- Sarandos promises no cuts to film output, a 45-day theater window, and more U.S. jobs while calling important's plan a job-killer.
- DOJ gave early antitrust okay to important; Netflix argues before broader market including YouTube to dodge monopoly worries.
Background
The push for the Netflix Warner Bros deal started last December. Netflix announced plans to buy Warner Bros. Discovery's studios, HBO Max, and key entertainment pieces. The price tag hit $83 billion, all in cash. Cable channels such as CNN, TNT, HGTV, and Food Network won't join the fold. Instead, they'll spin off into a new public company called Discovery Global. Current shareholders keep ownership there. Both Netflix and Warner Bros. boards approved it right away. The deal needs regulatory nods, shareholder votes, and standard checks. It's set to wrap in 12 to 18 months, with the spin-off done by Q3 2026.
But things got messy fast. David Ellison's firm, tied to important and Skydance, jumped in with a rival offer. Their bid values the whole Warner Bros. Discovery at $108.4 billion, or $30 per share in cash. It's simpler—no spin-offs. Warner Bros. said no at first. They called Netflix's path better for value and certainty. Still, they reopened bidding for seven days. That's why important has until Feb. 23 now. Stocks for Warner Bros. Discovery and important Skydance jumped before markets opened on the news.
Ted Sarandos stepped up. He's Netflix's co-CEO and long-time content boss. On February 3, he faced the Senate Judiciary Subcommittee on Antitrust. Senators like Amy Klobuchar worried about streaming power growing too big. She feared price hikes if Netflix grabs HBO Max, the third-biggest U.S. streamer. Sarandos pushed back. He said Netflix gives great value. Prices rose slower than rivals. Viewers spend just 35 cents per hour on Netflix content. And it's easy to quit.
“We are a one-click cancel, so if at any point the consumer says, ‘That’s too much for what I’m getting,’ they can just with one click of the button cancel Netflix.” – Ted Sarandos
Netflix points to its big U.S. footprint. Over 10 years, its shows supported 150,000 jobs. It pumped $225 billion into the economy. In 2026, Netflix plans $20 billion for film and TV, mostly in America. That ties into Google Launches Gemini 3.1 Pro with Top Benchmark Scores, where tech investments boost content creation.
James Cameron entered the fray. The Avatar director sent a letter to Senator Mike Lee. He called the Netflix Warner Bros deal disastrous for movie theaters and jobs there. Details leaked via media reports. Sarandos fired back. He labeled Cameron part of a important disinformation push. On a podcast, Sarandos said important's plan mirrors Disney's Fox buy. That cut films from 33 to 20 a year. Bad for creators. Netflix won't touch Warner's filmmaker pay or output. It matches current rates plus Netflix's own releases. And it grows from there.
Key Details
Sarandos laid out Netflix's vision clear. They'll keep a 45-day theater window for Warner films. Then PVOD, then HBO Max. No rush to streaming. Marketing stays strong. Netflix isn't out of cash. Sources say it has room to sweeten the pot if needed.
important fights dirty, per Sarandos. Their bid promises $6 billion in cuts. Job losses. More slashes to entertainment. Netflix grows. It invests. No guarantees of pain from them.
Regulators matter big. The DOJ gave important an early antitrust thumbs-up. That's for their full-company buy. Netflix plays broader. It says don't look just at streamers like Disney+ or HBO Max. Include YouTube. Netflix has 19% of U.S. streaming TV views. Adding HBO Max bumps it just 1%. Nielsen backs that. No monopoly.
Shareholders split. Activist group Ancora Holdings wants important. They hate Netflix's risks—regs, spin-off hassles. important offers cash now. It covers Netflix's $2.8 billion breakup fee if Warner switches. Plus quarterly payouts if delayed past year-end.
Sarandos Senate Testimony
Sarandos faced tough questions. Klobuchar hit on prices. He said hikes come with more value. Subscribers love it. Or they leave easy. No lock-in. He stressed vertical fit. Netflix distributes. Warner makes IP. Together, stronger. Not rivals dying.
Netflix co-CEO Greg Peters backs him quiet. Peters handles ops, product. His team calls it smart integration. Bruce Campbell, revenue chief, echoed that in hearings.
Warner Bros. CEO David Zaslav and chair Samuel Di Piazza stick with Netflix. Maximizing value. Certainty. But that Feb. 23 date looms. March 20 vote too.
Netflix stock dipped 19% since announce. Analysts see risks. Small returns maybe. Still, Sarandos bets on content wins. Harry Potter. Big Bang Theory. HBO hits. All for Netflix subs.
And Cameron's slam? Sarandos dismisses. Says it's important spin. Check Netflix’s ‘Strip Law’ Brings Absurd Vegas Cases to Animated Life for how Netflix keeps pushing fresh stories amid deals.
What This Means
If Netflix wins, HBO Max folds into Netflix. Bigger library. More shows. Warner studios keep making films. Theaters get 45 days. Jobs grow, Netflix says. U.S. production booms. Cable fans hold Discovery Global shares. No change there.
important takes all? Full company. $108 billion cash. Simpler. But cuts likely. Fewer films. Like Disney-Fox. Sarandos warns of that.
Consumers? Netflix promises no harm. Easy cancel. Value holds. Prices? They say slower rises. But power grows. Regulators watch.
Theaters worry. Cameron voices it. Netflix swears commitment. Windows stay. Marketing too. Studios alive.
Markets react. WBD, PSKY stocks up. Netflix down. Uncertainty rules. Feb. 23 final bid. March 20 vote. Regs ongoing. Deal shapes streaming. Who owns what content. Jobs in Hollywood. Theater fights.
Shareholders pick path. Cash now from important. Or growth bet with Netflix. Activists push cash. Board picks growth.
Netflix has playbook. Sarandos in D.C. Peters inside. They lobby. Talk value. Fight misinfo. important pays fees. Raises bids. Deadline pressure.
Biggest media merger ever? Maybe. $83 billion vs. $108 billion. Futures differ. One splits. One whole. Growth or cuts. Theaters or stream first.
Frequently Asked Questions
What happens if important submits a better final offer on Feb. 23?
Warner Bros. board reviews it. They weigh value, risks, regs. Shareholders still vote March 20 on Netflix. Board can shift if important tops big and covers fees.
Will Netflix keep Warner Bros. movies in theaters?
Yes. Sarandos pledged a 45-day exclusive window. Then pay-per-view. Then streaming on HBO Max inside Netflix.
Does the DOJ approve the Netflix Warner Bros deal?
Not yet. They nodded early to important. Netflix argues before wider market with YouTube. Hearings continue.
Frequently Asked Questions
What happens if Paramount submits a better final offer on Feb. 23?
Warner Bros. board reviews it. They weigh value, risks, regs. Shareholders still vote March 20 on Netflix. Board can shift if Paramount tops big and covers fees.
Will Netflix keep Warner Bros. movies in theaters?
Yes. Sarandos pledged a 45-day exclusive window. Then pay-per-view. Then streaming on HBO Max inside Netflix.
Does the DOJ approve the Netflix Warner Bros deal?
Not yet. They nodded early to Paramount. Netflix argues before wider market with YouTube. Hearings continue.
