Earlier today, the news broke that Paramount Skyfance has launched a hostile bid for Warner Bros. Discovery. However, Netflix co-CEO Ted Sarandos claims not to be worried about what David Ellison is planning.
"Today’s move was entirely expected," he said at a conference in New York hosted by Wall Street bank UBS. "We have a deal done, and we are incredibly happy with the deal. It’s great for shareholders, great for consumers."
"We think it’s a great way to create and protect jobs in the entertainment industry," Sarandos continued.
"We're super confident we're going to get it across the line. So we're set."
Money talks in every line of business, but particularly Hollywood. While Netflix's $82.7 billion deal offers $27.75 a share, Paramount's bid is for $30 per share, so the streaming service definitely has a battle on its hands. Appearing on CNBC, Ellison even said that "cash is king," and seems confident he can sway Warner Bros. Discovery shareholders.
He also argued that a Netflix/Warner Bros. Pictures/HBO merger would be a negative for streaming and the industry alike, playing on concerns raised ever since news of the planned acquisition broke last week.
"The Writer's Guild of America has already issued a statement that a deal must be blocked," Ellison crowed. "Hollywood legends, like James Cameron and Jane Fonda, have spoken out, describing the [Netflix] deal as a disaster for theatrical films. Paramount's proposal provides vastly superior certainty and projections for WBD’s shareholders and the Hollywood community."
He added, "Paramount is committed to growing the film and TV output of both businesses, including a theatrical slate of 30 plus theatrical releases per year. We’re going to satisfy the needs of the moviegoing public."
That's a clear shot at comments made by Sarandos on Friday when he said, "We’ve released about 30 films into theaters this year, so it's not like we have this opposition to movies in theaters...my pushback has been mostly in the fact of the long, exclusive windows, which we don't really think are that consumer-friendly."
So, the fight is on. While Warner Bros. Discovery and Netflix have agreed to move forward with the acquisition, much can change, and the shareholders will still have their say (as will regulatory committees and even President Donald Trump).
What would be best for Hollywood and film fans? There are pros and cons to both a Netflix and Paramount Skydance deal, but whatever happens, it's hard to shake the feeling that the outcome won't be what's best for the industry. The likes of Ellison and Sarandos, however, will reap the rewards...