Reuters
[Photo Credit: Reuters]
Netflix’s (NFLX.O), opens new tab decision to acquire assets from Warner Bros Discovery (WBD.O), opens new tab has not changed, its co-CEOs Greg Peters and Ted Sarandos said in a letter to employees on Monday.
The streaming giant won Warner Bros’ vote earlier this month, securing a $72 billion equity deal for its TV, film studios and streaming assets before Paramount launched a hostile $108.4 billion enterprise bid for the whole company.
Netflix is committed to theatrical releases of Warner Bros’ movies, saying it is “an important part of their business and legacy”.
Despite growing concerns of heavy regulatory scrutiny, Netflix is confident it will get the approvals, relying on its argument that the deal is necessary to compete with the dominance of YouTube.
But attorneys say the Justice Department is unlikely to see Netflix and YouTube as interchangeable rivals, given their different content, audiences and business models.
The company said the deal will not result in studio closures amid fears of job losses due to the rise of artificial intelligence. Paramount too had said it does not intend to cut content budgets and aims to run both studio units separately.
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