Netflix is right home for WBD: CEOs to stockholders 

Netflix, Inc. has welcomed the recommendation of the Warner Bros. Discovery WBD Board of Directors, urging stockholders to reject the “unsolicited” acquisition proposal from Paramount Skydance Corporation. 

In a statement and an open letter published on the website NetflixWBDTogether.com, Netflix Co CEOs Ted Sarandos and Greg Peters said the WBD Board, after a detailed review conducted with independent financial and legal advisers, had concluded that the Netflix merger agreement offers a more certain and superior alternative for WBD stockholders.

e4m stories on the deal:

What Netflix's new library means for viewers

Netflix-WBD deal poised to shake streaming 

Co-CEOs assure job security

The WBD Board has reaffirmed its support for the previously announced merger with Netflix, recommending that shareholders vote in favour of the transaction when the stockholder meeting is convened. The Board has described the Paramount Skydance proposal as unsolicited and flagged concerns around financing certainty, execution risk and regulatory complexity.

Netflix’s offer values WBD at $27.75 per share, comprising $23.25 in cash and $4.50 in Netflix stock, along with additional value expected from the planned separation of Discovery Global, WBD’s linear networks business. Netflix has said the deal is fully financed, does not require additional debt, and provides a clear path to closing within 12 to 18 months, subject to regulatory approvals.

In contrast, the WBD Board has stated that the Paramount Skydance bid introduces significant uncertainty, including questions around funding structure, restrictions on WBD’s operations between signing and closing, and the potential abandonment of the Discovery Global separation plan.

In their letter, Netflix’s leadership emphasised that the proposed combination would remain pro consumer and pro competition, noting that a combined Netflix and Warner Bros. would still trail major rivals such as YouTube and Disney in overall US television viewership share. Netflix also underscored its commitment to preserving Warner Bros.’ theatrical film business, creative autonomy and long standing relationships with talent and partners.

The letter highlighted the strategic rationale behind the deal, pointing to Warner Bros.’ studio operations, HBO’s premium content slate and global franchises such as Game of Thrones, DC, Harry Potter and Friends, alongside Netflix’s international scale, technology platform and subscriber base across more than 190 countries.

Meanwhile, Paramount Skydance has continued to position its all cash proposal as offering higher headline value and broader asset coverage, including WBD’s cable networks. The rival bid has intensified debate among investors, analysts and regulators over valuation, consolidation risk and the future structure of the global media industry.

With competing offers now firmly on the table, attention has shifted to WBD stockholders and regulators, whose decisions are expected to determine the outcome of one of the most consequential media mergers in recent decades.