Ted Sarandos defends Netflix’s $83 billion Warner Bros. deal, vows to keep theatrical releases

Ted Sarandos, Netflix’s co-chief executive, spoke at length for the first time since his company announced an $83 billion agreement to buy Warner Bros. Discovery’s movie and television business, saying the company would keep the studio running and continue releasing films in theaters.

The interview was conducted in New Jersey, where he was visiting to celebrate a new production facility. Sarandos acknowledged that the deal sent “shock waves” through the entertainment world and elicited a largely negative reaction in Hollywood, and he said some criticism stemmed from emotions about Netflix’s past reluctance around theatrical releases.

He defended the acquisition as a growth opportunity, saying the combined companies would increase content spending and that Netflix found the theatrical business to be healthier and more profitable than it had assumed. He said Netflix would run Warner Bros.’ theatrical distribution “largely like it is today,” citing a 45-day window, and described the distribution arm as producing billions of dollars of theatrical revenue.

The deal has unsettled other suitors: Paramount, which had been pursuing Warner Bros., launched a hostile bid and threatened a board fight. Sarandos said Reed Hastings was supportive though not an enthusiast of the purchase.

Key Topics

Business, Netflix, Warner Bros. Discovery, Ted Sarandos, Paramount, Theatrical Distribution