Netflix Is ‘100% Committed’ to Releasing Warner Bros. Movies in Theaters, Promises Company

by

Recently, a lot of controversy erupted when Netflix tried to buy Warner Bros. Companies like Paramount objected, arguing that Netflix’s offer was too low. Many people were especially concerned about what Netflix planned to do with Warner Bros.’ movies – specifically, whether they would still be shown in theaters. Netflix initially suggested it would release Warner Bros. films in theaters, but for a shorter time than usual, hinting that it might eventually stop theatrical releases altogether. However, Netflix has now changed course, stating it is “100% committed” to continuing theatrical releases for Warner Bros. films if the acquisition goes through.

On December 17, 2025, Netflix sent a letter to Warner Bros. Discovery stakeholders, encouraging them to approve Netflix’s acquisition of Warner Bros. Netflix also explained its plans for releasing Warner Bros. movies in cinemas.

We want to be clear about movie releases: Warner Bros. is fully committed to releasing its films in theaters as they traditionally have. While Netflix hasn’t focused on theatrical releases before, we’re excited to bring Warner Bros.’ experience in that area to our company.

Netflix’s recent comments about Warner Bros. movies and theatrical releases seem different from what they said before. Previously, Netflix CEO Ted Sarandos suggested release windows would become more flexible and convenient for viewers. Now, it’s unclear if Netflix is genuinely committed to this idea or simply trying to gain support for a potential Warner Bros. purchase. However, we see their current focus on “industry-standard release windows” as a positive change, and we hope this acquisition ultimately benefits movie theaters.

I was looking into the news about Netflix buying up parts of Warner Bros., and you can find all the details on their website: https://www.netflixwbtogether.com/. They even posted the full letter they sent to Warner Bros. Discovery stockholders, where they talk about their plans for releasing movies – both in theaters and elsewhere. You can check it out below if you’re curious!

Dear Warner Bros. Discovery Stockholders, 

Today, Warner Bros. Discovery’s board of directors sent a strong message to its shareholders. They are asking you to reject the unwanted and inadequate offer from Paramount Skydance.

Okay, so as a movie and TV fan, I’ve been following this closely. Basically, Warner Bros. Discovery’s board has really thought things through, and they’ve decided that merging with Netflix is the best way forward for the company and its shareholders. They already recommended it after a lot of consideration, and today they’re doubling down on that, urging everyone who owns WBD stock to vote ‘yes’ when the time comes at the shareholder meeting. They’re pretty confident this Netflix deal is the right move.

Let’s quickly remind everyone why we’re confident our deal with Netflix is the best choice – the right partnership, happening at the perfect moment. We also want to clarify a few important details. Here’s what makes this deal so strong:

  1. Superior financing certainty and clear funding structure:  Our deal structure is clean and certain, with committed debt financing from leading institutions. There are no contingencies, no foreign sovereign wealth funds, and no stock collateral or personal loans. We are a scaled company with a +$400 billion market cap and a strong investment grade balance sheet. As WBD said, the PSKY offer has “numerous risks and uncertainties” associated with it, among which are PSKY’s financial condition and creditworthiness.  
  2. Confidence in regulatory approvals: We plan to close the transaction in 12-18 months, after completing customary regulatory approvals. Netflix has submitted its HSR filing and is engaging with competition authorities, including the DOJ and EU Commission. Our financing structure is not subject to review by the Committee on Foreign Investment in the United States (CFIUS). Our $5.8 billion reverse termination fee, which is the largest cash regulatory termination fee in a public M&A transaction, shows our confidence in our ability to obtain required regulatory approvals. 
  3. Less risk and greater flexibility for WBD stockholders: Our offer provides flexibility for WBD to run its business between now and close, as well as facilitate the separation of Discovery Global quickly, as previously determined by the WBD board to be the right strategic direction that ensures continued stockholder value creation. In contrast, PSKY’s offer puts substantial limitations on WBD’s operations between sign and close and requires WBD to abandon its planned separation of Discovery Global. As a result, if PSKY’s offer ultimately fails to close, WBD’s stockholders will have lost the opportunity to reposition the company and realize substantial benefits of the separation for a prolonged period. 
  4. Fully negotiated agreement designed for execution: This agreement is the result of thoughtful, collaborative work between our two companies. Together, we will work cooperatively to ensure a smooth and stable transition for our creators, employees, partners, and stockholders. Because of this preparation and our shared commitment to excellence, we’re moving forward with clarity, accountability, and real momentum.

More Value for Stockholders 

Our deal offers WBD stockholders a total value of $27.75 per share, consisting of $23.25 in cash and $4.50 in Netflix stock. This Netflix stock portion includes a mechanism to protect stockholders as the deal progresses. In addition, WBD stockholders will receive shares of Discovery Global after its separation, which is expected to create further value. As WBD explained, separating Discovery Global will give it more flexibility to invest, grow through acquisitions, or potentially achieve a higher value for its stockholders in the future.

Clear, Timely Path to Close 

We strongly believe regulators will recognize this deal as beneficial for everyone – customers, innovators, workers, creators, the economy, and competition.

The entertainment world is incredibly competitive and constantly changing. People have countless options for how they spend their free time – from streaming and traditional TV to video games, social media, and online videos. At the same time, filmmakers and other creators have more ways than ever to share their work.

You don’t have to take our word for it:  

  • In the U.S.,¹ Netflix is in sixth place in TV view share, trailing Google/YouTube, Disney, Comcast NBCU, Fox, and Paramount.

  • YouTube and Disney lead by a wide margin – 12.9% and 11.4% respectively – while Netflix sits at 8.0%. 
  • Pro forma, a combined Netflix-HBO/HBO Max would be 9.2% share (only up from 8%), still below both YouTube and Disney.   
  • If PSKY acquired WBD, its share would increase to 14%.
  • In major markets outside of the U.S., Netflix’s TV view share is also less than 10%.

For over 25 years, we’ve consistently delivered strong results for our investors, operated with exceptional efficiency, and built lasting, collaborative relationships with our partners.

Netflix has consistently invested wisely, fostered strong creative partnerships, and operated its global entertainment business responsibly. We believe lasting success in this industry comes from a long-term commitment to great stories, talented creators, and maintaining a strong brand – and this deal reflects those values. From starting with DVDs and moving to streaming, then creating original content and expanding globally, we’ve always focused on improving, innovating, and putting our audience first. Our experienced leadership team has consistently adapted to the fast-changing entertainment landscape, delivering exceptional value to both viewers and the creative community. As a result, we’ve generated over $400 billion in value for our shareholders.

We’re passionate about film and TV, and deeply value the artists who make it all happen. That’s why we’re known for giving creators the freedom they need. As part of Warner Bros., we’ll keep supporting the creative community and helping new talent shine.

More Value for Consumers Worldwide 

Netflix and Warner Bros. offer a huge library of popular and critically acclaimed shows and movies, including hits like The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, DC Universe films, and recent favorites like Wednesday, Squid Game, Bridgerton, Adolescence, and KPop Demon Hunters.

Netflix can help Warner Bros.’ popular movies and shows reach even more people – over 190 countries, in fact. Plus, because a large number of HBO Max subscribers (around 75%) also use Netflix, we can create better and more personalized subscription options to fit what viewers actually want.

More Opportunity for the Entertainment Industry 

Unlike any other potential combination, Netflix and Warner Bros. truly complement each other. 

Warner Bros. brings strengths to the table that Netflix doesn’t have, including a thriving movie studio, a top-tier television production business, and HBO, known for its high-quality programming. Combining these with Netflix’s cutting-edge technology, valuable content, worldwide presence, and excellent streaming platform will create more opportunities for filmmakers and boost the entertainment industry as a whole.

Netflix and Warner Bros. have very little business overlap, making this a largely positive and expanding partnership. Warner Bros.’ production resources will allow us to significantly increase our investment in original content made in the U.S., creating more consistent work for everyone involved – from crews and editors to actors and writers. This partnership also gives filmmakers and series creators, both well-known and up-and-coming, a broader platform to share their work with the world. We will also continue creating content for other companies and remain a major provider in the entertainment industry.

We want to clarify our plans for releasing movies: we’re fully committed to showing Warner Bros. films in theaters as they traditionally do. While we haven’t focused on theatrical releases at Netflix before, we’re excited to use Warner Bros.’ experience to bring movies to the big screen.

Netflix is the Right Home for Warner Bros. 

Look, after considering everything, I’m convinced Netflix is the perfect place for Warner Bros. and everything they’ve accomplished over the past hundred years. It just feels like a natural fit, and a place where that legacy will really thrive.

As a movie lover, I’m really hoping everything goes smoothly with this deal. We’re committed to working with Warner Bros. Discovery, the authorities, and everyone involved to make sure that happens. What I’m most excited about is that the focus will stay on making amazing films and shows, supporting the incredible people who create them, and keeping the entertainment world thriving and competitive. That’s what truly matters to me.

We’re committed to protecting and showcasing Warner Bros.’ amazing collection of films and shows, ensuring they continue to be enjoyed in theaters and by new audiences worldwide. We believe we can create truly inspiring and entertaining experiences, and we’re excited to work with David Zaslav and his team to achieve this.

Sincerely,

Ted Sarandos, co-CEO                       

Greg Peters, co-CEO

Read More

2025-12-17 18:06