The battle to acquire Warner Bros. Discovery has turned into a public war of words. Netflix co-CEO Ted Sarandos is now accusing rival bidder Paramount Skydance of spreading false information to sabotage Netflix’s agreed deal. The streaming giant has already signed an $83 billion agreement to buy Warner Bros.’ studio and streaming assets, but Paramount is trying to intervene with a hostile offer.
The situation grew more intense this week when Warner Bros. Discovery requested and received a seven-day waiver from Netflix. This pause allows Warner Bros. to hold new talks with Paramount until February 23. Sarandos agreed to the waiver but did not hold back his frustration during a recent interview, making it clear that he believes Paramount is not playing fair .
Sarandos Accuses Paramount of Misinformation Campaign
Ted Sarandos sat down with CNBC on Tuesday and did not mince words when describing Paramount’s tactics. He accused the rival company of purposely creating confusion to shake shareholder confidence in the Netflix deal.
“They are flooding the zone with misinformation, creating a bunch of what-ifs and scenarios that are very wild,” Sarandos said. He added that even at the most extreme end of Paramount’s claims, the scenarios do not make sense. He emphasized that Warner Bros. has been clear about its goal from the beginning: to maximize cash value for its shareholders .
Sarandos also dismissed suggestions from Paramount Skydance CEO David Ellison that Paramount would have a smoother path through government regulators. Ellison, backed by his billionaire father Larry Ellison, has hinted that his family’s connections could help speed up approval.
Sarandos pushed back hard on that idea. “They do not have a faster regulatory path. I don’t know why the Ellisons would insinuate they have some inside track in the Department of Justice, but I can assure you they do not,” he stated. He also pointed out that Netflix is already a known and trusted entity with regulators in Europe and around the world. He argued that Netflix’s deal, which does not include Discovery Global, would not disrupt European broadcasting systems like a full takeover might .
Warner Bros. Gives Paramount One Week to Make Final Offer
Warner Bros. Discovery has made its position clear. The company filed documents with the U.S. Securities and Exchange Commission stating that its board unanimously recommends that shareholders vote in favor of the Netflix merger. A special shareholder meeting is scheduled for March 20 to vote on the Netflix deal .
However, Warner Bros. is also giving Paramount one final chance. Until February 23, Paramount can submit what the company calls a “best and final” offer. The board said this process is meant to clarify issues in Paramount’s proposal and give them an opportunity to present a binding bid .
Despite reopening talks, Warner Bros. made it clear that it remains fully committed to the Netflix transaction. The board stated that it has not determined that Paramount’s proposal is likely to result in a better deal. They also expect any competing bidder to accept the same terms that Netflix has already agreed to .
What Each Company Is Offering
The numbers involved in this bidding war are massive, and the two offers are structured very differently. Understanding the difference helps explain why Sarandos is so confident in Netflix’s position.
Netflix is offering $83 billion to acquire Warner Bros.’ studio business, the HBO and HBO Max streaming services. The deal does not include Warner Bros. Discovery’s cable television networks like CNN, TNT, and Discovery. Those assets would be spun off into a new, publicly traded company called Discovery Global. Netflix recently sweetened its offer by making it an all-cash deal, removing stock from the equation to provide more certainty for Warner Bros. shareholders .
Paramount Skydance is taking a different approach. The company is offering $108 billion to buy all of Warner Bros. Discovery, including the cable networks. This offer is backed by $43.6 billion in equity commitments from Larry Ellison and RedBird Capital Partners, along with $54 billion in debt financing from major banks .
Paramount has also added incentives to make its bid more attractive. The company has offered to pay Warner Bros. shareholders a “ticking fee” of 25 cents per share—roughly $650 million per quarter—for every quarter the deal is not completed after December 31. They have also pledged to cover the $2.8 billion termination fee if Warner Bros. walks away from the Netflix agreement .
Regulatory and Political Hurdles
Any deal of this size will face intense scrutiny from government regulators. The U.S. Department of Justice is already reviewing the Netflix acquisition, and regulators in the European Union and Britain are expected to do the same. Those reviews could take months .
The political landscape is also complicated. President Donald Trump said last year that he would be “involved” in the regulatory process. Both companies are jockeying for position. David Ellison and his father have courted the president, while Sarandos has also met with Trump to discuss the entertainment industry .
During a recent Senate Judiciary Committee hearing, lawmakers pressed Sarandos on his meeting with Trump. Sarandos explained that the conversation was part of a broader discussion about issues facing the entertainment industry, including production, the economy, and protecting American jobs. “It was not a meeting specifically to talk about the deal,” he told senators. “I have confidence in this case on the merits, and that it will be run by the Department of Justice” .
Hollywood Voices Concerns
The proposed merger has also drawn criticism from within the entertainment industry. The Writers Guild of America issued a statement saying the purchase would “eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers and reduce the volume and diversity of content for all viewers” .
A coalition of indie filmmakers, theater operators, and nonprofits also sent a letter to the National Association of Attorneys General asking state attorneys general to block the deal. The group argues that the merger would harm competition and raise prices for consumers .
Sarandos has pushed back against these claims. He told senators that Netflix is “contributing directly to the American economy” and “helping American creators tell more American stories to the rest of the world.” He also argued that combining the two companies would give consumers more content for less money, noting that about 80% of HBO subscribers in the U.S. also subscribe to Netflix .
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What Happens Next
The next few days will be critical. Paramount has until February 23 to present its final offer to Warner Bros. Discovery. If the company fails to submit a bid that the board considers superior, the focus will shift to the March 20 shareholder vote on the Netflix deal .
If shareholders approve the Netflix merger, the deal will still need to clear regulatory reviews in the U.S. and overseas. That process could stretch into late 2026 or early 2027 .
For now, Sarandos remains confident that Netflix will prevail. He told CNBC that granting the waiver to allow Warner Bros. to talk to Paramount was the right move. “We have given the opportunity to get those shareholders exactly what they deserve, which is complete clarity and certainty about what the value of these deals are,” he said. “And what we’re certain is, is that the Netflix deal to acquire these assets is the best deal, generates the best value for their shareholders” .
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