Netflix co-chief executive Ted Sarandos has defended the company’s takeover bid for Warner Bros, arguing that it would deliver greater growth for both the business and the wider entertainment industry than a rival offer from Paramount.
Speaking to the BBC’s Today programme, Sarandos said Netflix’s proposal was centred on expansion. He explained that the company would be acquiring a film studio and a distribution entity that it does not currently own, adding that this would broaden the market rather than consolidate it.
Last December, Warner Bros agreed to a takeover offer from Netflix covering parts of its business. However, Paramount has since submitted a competing bid.
Warner Bros has given Paramount until the end of Monday to present a best and final offer ahead of a shareholder vote on the Netflix deal scheduled for next month.
Netflix has offered $27.75 per share, valuing the studio and its streaming networks at $82.7 billion. The proposal includes major brands such as Warner Bros, New Line Cinema and HBO Max, while the remainder of the company would be spun off as a separate independent entity.
By contrast, Paramount has tabled a 30 dollar per share offer, valuing the entire company at $108.4 billion. Its bid covers all divisions, including Warner Bros’ traditional pay television networks, which are widely regarded as a declining segment of the business.
Sarandos claimed Paramount was attempting to disrupt the Netflix agreement and maintained that his company’s offer represented a stronger long-term proposition. He said that under Netflix ownership, the business would continue to expand, whereas under Paramount it could become smaller. “Our deal is growth,” Sarandos said, noting that Netflix has consistently expanded since its launch.
He also dismissed comments from Donald Trump, who had suggested that Netflix would face consequences if it did not remove Democratic board member Susan Rice. Sarandos described the situation as a business matter rather than a political one and brushed aside the remarks as social media rhetoric.
The outcome of the bidding contest is expected to be decided following the shareholder vote next month.
