Netflix defends Warner Bros. deal amid fears it could hasten cinema’s decline
Netflix has sought to quell industry fears that its proposed acquisition of Warner Bros. Discovery could accelerate the decline of traditional cinema, pledging to maintain theatrical releases for Warner Bros. films under a traditional window.
Source: www.unsplash.com
Certain and superior
The reassurance comes as the Warner Bros. Discovery board recommended that shareholders reject an unsolicited offer from Paramount Skydance Corporation and approve Netflix’s $82.7bn merger proposal, which it has described as the more certain and superior option.
Under the deal, announced on 5 December, Netflix would acquire Warner Bros., including its film and television studios, HBO and HBO Max, in a fully negotiated cash-and-stock transaction valued at $27.75 per share. Shareholders would also benefit from the planned separation of WBD’s Global Linear Networks business, Discovery Global, expected in the third quarter of 2026.
The proposed takeover has sparked concern among filmmakers, critics and cinema operators who argue that placing one of Hollywood’s oldest studios under the control of a streaming-first company could further weaken the theatrical model. Netflix’s release strategy — which has often prioritised streaming over cinemas — has fuelled speculation that the deal could mark a turning point for traditional moviegoing.
Still in theatres
Addressing those concerns directly, Netflix co-CEO Ted Sarandos said the company is “fully committed” to releasing Warner Bros. films in theatres, with a traditional theatrical window, allowing audiences to see films on the big screen before they move to streaming.
“The Warner Bros. Discovery Board reinforced that Netflix’s merger agreement is superior and that our acquisition is in the best interest of stockholders,” said Sarandos. “This was a competitive process that delivered the best outcome for consumers, creators, stockholders and the broader entertainment industry. Netflix and Warner Bros. complement each other, and we’re excited to combine our strengths with their theatrical film division, world-class television studio, and the iconic HBO brand, which will continue to focus on prestige television. We’re also fully committed to releasing Warner Bros. films in theaters, with a traditional window, so audiences everywhere can enjoy them on the big screen.”
Netflix co-CEO Greg Peters added that the combined group would continue to produce films for both theatrical and home viewing, while expanding choice for audiences and creators.