Netflix Warner Bros Bid Defended Ahead of Paramount Deadline

The Netflix Warner Bros bid has been touted as superior by Netflix's co-CEO, Ted Sarandos, in comparison to a competing offer from Paramount. Sarandos explained to the BBC's Today programme that Netflix's proposal emphasizes industry growth. "We’re acquiring a movie studio and a distribution entity that we currently do not possess—this will expand the market," he stated. Last December, Warner Bros accepted a takeover offer from Netflix for specific assets, but Paramount quickly countered with its own proposal.

Sarandos also dismissed threats from former President Trump, who insisted that Netflix would "face consequences" if it did not terminate Democratic board member Susan Rice. Sarandos clarified, "This is a business deal, not a political one," adding that Trump has a penchant for utilising social media for such pronouncements.

Recently, Warner Bros has given Paramount until the upcoming Monday to present its "best and final" offer, with a shareholder vote on the Netflix deal scheduled for next month. Netflix has proposed $27.75 per share, amounting to a total of $82.7 billion (£61.2 billion), aiming to acquire Warner Bros' studio and streaming networks, including remembered brands like HBO Max and New Line Cinema. Paramount, on the other hand, is offering $30 per share, totaling $108.4 billion, but it targets the entire company, including its traditional pay-TV networks which are viewed as declining assets.

Sarandos conveyed that Paramount is actively trying to undermine Netflix’s agreement with Warner Bros. He argued that Netflix’s proposal is advantageous as they would be "buying assets we don’t currently have." He emphasised that, under Paramount’s ownership, the industry would be significantly smaller.

He continued, "Our deal is all about growth. Since our inception, we have consistently expanded. For instance, our investments in the UK have created 50,000 jobs and resulted in $6bn spent on original programming since 2020." Sarandos criticized Paramount's assertion to cut $6 billion immediately from its operations, along with an additional $16 billion thereafter. "Currently, only five major studios remain in Hollywood. If Paramount’s deal proceeds, we drop to four as it merges two into one," he stated.

Paramount has refrained from commenting but previously mentioned that its deal offers investors higher certainty than Netflix's proposal and is willing to cover the $2.8 billion break-up fee that Warner Bros owes Netflix should the deal collapse. Last week, Paramount reiterated its commitment to advancing its tender offer and maintaining its resistance against what it perceives as the inferior Netflix merger.

When asked about offering a higher bid if Paramount increases theirs, Sarandos preferred to avoid hypotheticals but affirmed that Netflix’s offer was a "spectacular opportunity at a price." Sarandos also responded to criticism from renowned filmmaker James Cameron, known for directing blockbuster hits like Avatar and Titanic. Describing Cameron as "disingenuous," Sarandos referred to Cameron’s remarks to US competition regulators, indicating that the Netflix deal would be disastrous for cinemas. He countered by stating, "The average Netflix subscriber watches seven movies per month, while the average American visits the cinema just twice a year." He added that he does not view Netflix as a direct rival to theater chains, asserting that when audiences appreciate a movie in theaters, they tend to want to watch more films at home.

For more insights, visit authoritative sources such as [Variety](https://variety.com/) and [The Hollywood Reporter](https://www.hollywoodreporter.com/). Additionally, for more information on effective marketing strategies, check out [www.sellablemarketing.com/resource](http://www.sellablemarketing.com/resource) and [www.sellablemarketing.com/blog](http://www.sellablemarketing.com/blog).

Source: https://www.bbc.com/news/articles/c20jn073gj4o