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Dec 9, 2025
Why Now? Netflix Co-Chiefs Explain $82.7 Billion Warner Bros. Deal Logic and Changes Ahead
Why Now? Netflix Co-Chiefs Explain $82.7 Billion Warner Bros. Deal Logic and Changes Ahead
The Hollywood Reporter
Hollywood Blockbuster: Netflix Poised to Win Battle for Warner Bros.
Why did Netflix strike its nearly $83 billion deal for Warner Bros. after dismissing major deals for years? How confident are they that they can navigate the regulatory environment in the U.S. and around the world? What will the deal mean for Hollywood creatives, and the other companies that Warner Bros. produces TV programming for?
In a wide-ranging call with Wall Street analysts early Friday morning, Netflix co-CEOs Ted Sarandos and Greg Peters addressed many of those questions, with Sarandos framing the deal as a "rare opportunity."
Of course Netflix has never done a deal anywhere close to this size, or as Sarandos acknowledged on the call: "I know some of you are surprised that we're making this acquisition, and I certainly understand why. Over the years, we have been known to be builders, not buyers."
In fact, Peters was asked about Netflix's interest in Warner Bros. at a Bloomberg event in October, where he noted that deals "don't have an amazing track record," but left the door open to a deal for WBD. It was a door that the company ended up opening.
"Historically, many of these mergers haven't worked," Peters said when asked about those comments. "A lot of those failures that we've seen historically is because the company that was doing the acquisition didn't understand the entertainment business. They didn't really understand what they were buying. We understand these assets that we're buying, the things that are critical in Warner Bros. are key businesses that we operate in, and we understand. A lot of times, the acquiring company, it was a legacy, non-growth business that was looking for sort of a lifeline that doesn't apply to us."
The executives also sought to soothe concerns from filmmakers and other creatives concerned about what the deal would mean for their work.
"I think this is a good story, because this is a a healthy, growing business that is going to help another busines
