Netflix Chief Says Warner Bros Bid Will Grow Hollywood as Paramount Rivalry Heats Up

The co-chief executive of Netflix has defended the company’s multi-billion dollar bid for Warner Bros assets, arguing it would strengthen both the business and the wider entertainment industry amid a competing offer from Paramount Globa

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Speaking to the BBC’s Today programme, Ted Sarandos described Netflix’s proposed takeover as a “growth-focused” move that would expand its capabilities rather than consolidate existing operations.

“We’re buying a movie studio and a distribution entity that we don’t currently have,” he said. “We’ll be adding to the market.”

Last year, Warner Bros agreed to sell parts of its business including its studio operations and streaming networks to Netflix for $27.75 per share, valuing the deal at $82.7bn. The agreement covers well-known brands such as New Line Cinema and HBO Max, while the remainder of Warner Bros would be spun off as a separate company.

However, Paramount has since tabled a rival $30-a-share offer worth $108.4bn for the entire company, including its traditional pay-TV networks. Those assets are widely viewed as being in long-term decline, but Paramount has argued its proposal offers greater certainty for shareholders. The company has also offered to cover a $2.8bn break-up fee should Warner Bros abandon the Netflix agreement.

Warner Bros has given Paramount until the end of Monday to submit a final bid before shareholders vote on the Netflix deal next month.

Sarandos criticised Paramount’s approach, claiming it would shrink the industry by merging two major studios into one. “There are five major studios left in Hollywood. If the Paramount deal were to go through, it would be four,” he said. “They’re essentially collapsing two studios into one.”

By contrast, he said Netflix’s strategy is centred on expansion, pointing to its investment in British productions. Since 2020, Netflix has created tens of thousands of jobs in the UK and invested billions of dollars in original programming.

Sarandos also dismissed political pressure from Donald Trump, who recently suggested Netflix would “face the consequences” if it did not remove board member Susan Rice. “This is a business deal, not a political deal,” Sarandos said, adding that the former president “likes to do a lot of things on social media.”

He further rejected criticism from filmmaker James Cameron, who has warned US regulators that the deal could harm cinemas. Cameron, known for directing blockbuster films such as Titanic and Avatar, described the proposed merger as potentially “disastrous” for the big-screen business.

Sarandos countered that Netflix and cinemas serve different viewing habits. He argued that while the average American goes to the cinema only a couple of times a year, Netflix subscribers watch multiple films each month. Far from competing directly with theatres, he suggested, streaming can complement cinema-going by fuelling demand for more content at home.

Paramount has declined to comment further but has previously described Netflix’s proposal as inferior and said it will continue to pursue its own tender offer.

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