Netflix CEOs break silence on Warner Bros. deal in a letter to employees: Report

Recently, Netflix made a controversial announcement of acquiring Warner Bros. Discovery (WBD) for $82.7 billion. The news sparked widespread speculation and fear in Hollywood about the future of studio independence, theatrical releases, job losses, and other concerns. Now, the co-CEOs of Netflix, Greg Peters and Ted Sarandos, have finally broken their silence about the acquisition in a letter to their employees. The letter has now been made public in a report by Bloomberg.

As per an SEC filing report, the employee memo “aims to give employees clarity and understanding around strategic bets/issues, and a heads up on important news in roughly a five-minute read. Internal only,” The CEOs have said in the memo that all the  Warner Bros. Discovery movies will be released in cinemas, before streaming online on Netflix. It further assures employees that the merger will not cause layoffs or the shutdown of departments.

The CEOs added that the merger is “about growth” and that the company plans to “strengthen one of Hollywood’s most iconic studios, supporting jobs, and ensuring a healthy future for film and TV production.” However, many disagree with the promises, and the Writers Guild of America (WGA) says that the deal violates antitrust laws.

Furthermore, Senators Elizabeth Warren, Bernie Sanders, and Richard Blumenthal have also written a formal letter to the Justice Department Antitrust Division highlighting the concerns of the merger and how it will reduce competition in the entertainment industry. 

Government regulators are now expected to review the deal, and the deal could face several legal challenges and industry pushback. While Netflix highlights a positive deal, antitrust regulators will not intervene to determine the finalisation.