Netflix Addresses WB Takeover Concerns in Employee Memo

Through groundbreaking original programming and a commitment to a wide variety of audience members, Netflix has emerged as one of the big winners of the streaming wars.

At a time when streaming services are consolidating content across apps to make more money, Netflix is preparing for what could be an industry-changing merger and takeover.

The streaming video giant appears poised to complete an $82.7 billion offer to buy Warner Bros. Studios, HBO and HBO Max. The deal still needs to clear a few more hurdles before it's official, but higher-ups at Netflix seem to believe that it will only be a matter of time.

According to Variety, Netflix co-CEOs Ted Sarandos and Greg Peters sent a memo to employees in an effort to defend the deal and quell concerns about its potential harm to the film and television industries.

Sarandos, Peters Address Warner Bros. Deal

"We have a solid deal in place. It’s great for our shareholders, great for consumers, and a strong way to create and protect jobs in the industry," Sarandos and Peters said in the memo, which was disclosed as part of an SEC filing on Monday.

"We’re confident we’ll get it over the finish line — and we’re genuinely excited about what’s ahead.”

Sarandos and Peters made their statement in the Netflix Take 5 blog, which “aims to give employees clarity and understanding around strategic bets/issues, and a heads up on important news in roughly a five-minute read."

The co-CEOs also attempted to address concerns regarding the acquisition itself, and what it would mean for the future of the film industry.

Response to Film, Theater Industry Concern

"Some feel this is the end of Hollywood. What’s our response to that?," Sarandos and Peters said.

"This is something that we’ve heard for a long time — including when we started the streaming business. Our stance then and now is the same —we see this as a win for the entertainment industry, not the end of it."

Sarandos and Peters said that the acquisition will not require the closure of studios or the loss of jobs. "We’re strengthening one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production," they said in the memo.

The co-CEOs addressed the concerns around the theater industry, which some believe will be harmed by the success and growth of Netflix.

“Theatrical is an important part of [the Warner Bros.] business and legacy, and we don’t want to change what makes Warner Bros. so valuable. If this deal had happened two years ago, hits like ‘Minecraft’ and ‘Superman’ would still have premiered on the big screen as they did — and that’s how we plan to keep it,” Sarandos and Peters added.

"We haven’t prioritized theatrical in the past because that wasn’t our business at Netflix. When this deal closes, we will be in that business.”

Netflix will look to close the deal after a direct-to-shareholders bid from Paramount Skydance CEO David Ellison was placed three days after its agreement.