Los Angeles — Ted Sarandos expressed significant frustration regarding a recent complication in Netflix’s efforts to finalize its $83 billion acquisition of Warner Bros. Discovery and HBO Max. The deal, originally agreed upon in December, faces challenges after Paramount Skydance reportedly sparked concerns among shareholders that prompted Warner Bros. Discovery to seek a seven-day waiver from Netflix to pursue discussions with the rival group.
In an interview with CNBC, Sarandos accused Paramount Skydance of disseminating damaging misinformation aimed at muddying the waters of the Netflix transaction. He noted that Netflix had agreed to the waiver, hoping to clear uncertainties and facilitate an upcoming shareholder vote scheduled for March 20.
Sarandos criticized the narrative pushed by Paramount Skydance, claiming it created a range of unrealistic scenarios. “The most likely outcome is there’s no adjustment at all,” he said, emphasizing Warner Bros. Discovery’s commitment to maximizing shareholder value. According to him, the deal with Netflix remains more favorable for Warner Bros. Discovery’s stakeholders.
While Sarandos indicated confidence that Netflix will successfully conclude the acquisition, he dismissed concerns regarding regulatory hurdles. He directly took aim at claims made by Paramount Skydance CEO David Ellison, who suggested that his firm would face fewer obstacles with regulators compared to Netflix, given its significant position in the entertainment landscape.
On this point, Sarandos stated, “Paramount Skydance does not have a faster regulatory path,” insisting their assertions lack merit. He argued that Netflix has established itself as a trusted entity in various international markets, which may actually facilitate the deal’s passage rather than hinder it.
The decision to grant a waiver to Warner Bros. Discovery aimed to provide shareholders with clarity and certainty about the value of the proposed transactions. “We want to ensure that shareholders receive exactly what they deserve,” Sarandos explained, underscoring his belief that the Netflix deal presents the best option for Warner Bros. Discovery.
He refrained from detailing any specific figures about speculation that Paramount might raise its offer, which currently stands at $30 per share. Instead, he reiterated that the priority is for shareholders to assess their positions clearly within the seven-day window before the crucial vote.
Sarandos remains optimistic about the outcome, expressing confidence that both the Warner Bros. Discovery board and shareholders will ultimately recognize that the Netflix acquisition represents the best available opportunity.