UPDATE: In a significant announcement at the UBS Conference, Netflix Co-CEOs Ted Sarandos and Greg Peters reaffirmed their commitment to theatrical releases while discussing their proposed acquisition of Warner Bros. Sarandos stated, “Today’s move was entirely expected. We have a deal done, and we are incredibly happy with the deal.”
This urgent update comes as Netflix seeks to reshape its film and television operations, including keeping the theatrical distribution model currently in place. Sarandos emphasized their intention to preserve the value of Warner Bros., stating, “We didn’t buy this company to destroy that value.”
The executives highlighted the success of Warner Bros. films, which have collectively grossed $4 billion at the global box office in 2025. Sarandos noted, “We’re deeply committed to releasing those movies exactly the way they’ve released those movies today.” This marks a shift in Netflix’s approach to cinematic releases, which have historically been limited to awards qualifications or experimental runs.
In stark contrast to previous comments made to analysts, where Sarandos hinted at evolving theatrical windows, he reiterated that Netflix would honor existing agreements with Warner Bros. films. “If we did this deal 24 months ago, all of those movies we saw this year do so well at the box office for Warner Bros. would have been released in the same way in theatres,” he asserted.
As discussions continue, Sarandos recognized Warner Bros. Television as a key third-party supplier, expressing confidence in Chairperson Channing Dungey and her team. He stated, “We want them to continue doing that phenomenal job.”
On the topic of HBO, which is overseen by Casey Bloys, Sarandos indicated a desire to double down on the network’s legacy of prestige television. “These are things we’re going to keep going in this business,” he affirmed.
The executives also stressed the importance of job creation within the industry. Peters explained, “If you think about the core business units that exist inside Warner’s that we would be acquiring, we don’t have those units right now. So we don’t have the redundancy issue. We’re not trying to consolidate.”
In a notable encounter last week, Sarandos met with US President Donald Trump, who commented on the acquisition’s potential to create “a lot of market share,” raising concerns within the industry. Sarandos responded, highlighting Netflix’s substantial economic impact, noting, “Our original productions have employed 140,000 people from 2020 to 2024,” contributing approximately $125 billion to the US economy.
With Netflix’s projected content spending anticipated to reach $18 billion in 2026, the combined assets—including Warner Bros. Discovery—could see annual expenditures soar to around $30 billion. However, the acquisition must first navigate regulatory scrutiny from the Department of Justice regarding potential anti-trust concerns.
Peters expressed confidence in the approval process, stating, “We are very confident that regulators should and will approve it. At the end of the day, it’s pro-consumer, delivers more value to those folks, pro-creator.”
As this story develops, industry watchers will be keen to see how Netflix’s strategic shift affects the future of theatrical releases and the broader entertainment landscape. Stay tuned for further updates as this story unfolds.
