UPDATE: Netflix’s Co-CEOs, Ted Sarandos and Greg Peters, just announced their commitment to maintaining theatrical releases following their recent bid for Warner Bros. Speaking at the UBS Conference earlier today, Sarandos declared that Netflix is “incredibly happy” with the deal, emphasizing their intention to preserve the value of the Warner Bros film and television studios.
The executives confirmed that Netflix’s approach will not disrupt current theatrical distribution models. Sarandos highlighted Warner Bros’ impressive $4 billion global box office gross in 2025, stating, “We’re deeply committed to releasing those movies exactly the way they’ve released those movies today.” This announcement contrasts sharply with Sarandos’ previous comments, which had raised concerns in the exhibition community about the future of theatrical agreements.
During the conference, Sarandos confirmed that Warner Bros Television will retain its role as a third-party supplier, praising chairperson Channing Dungey and her team for their outstanding work. Additionally, he expressed a desire for HBO to continue its legacy of prestige television under Casey Bloys.
Both Sarandos and Peters stressed their commitment to job creation, countering fears of job cuts associated with mergers. Peters pointed out that Netflix is not acquiring redundant business units, which would typically lead to layoffs. “We’re not cutting jobs. We’re making jobs,” he asserted.
In a notable political connection, Sarandos met with U.S. President Donald Trump last week, who remarked that the acquisition could significantly change market dynamics. Sarandos responded, stating, “The president understands what we do… Our original productions have employed 140,000 people from 2020 to 2024, contributing approximately $125 billion to the U.S. economy.”
Looking ahead, Netflix’s projected content spend for 2026 is set at $18 billion, while a combined company, including Warner Bros Discovery assets, could reach around $30 billion annually. The deal, however, must navigate regulatory scrutiny from the Department of Justice, which is assessing potential anti-trust implications. Peters expressed confidence in approval, stating, “At the end of the day, it’s pro-consumer, delivers more value to those folks, pro-creator.”
As developments unfold, the industry will be closely watching how this merger could reshape the landscape of film and television distribution. Stay tuned for more updates on this rapidly evolving story.
