Last week Netflix announced the acquisition of the assets of Warner Bros. Discovery, Inc. and this hasn’t changed. This is what they pointed out Greg Peters and Ted Sarandos, co-directors of the companyto its employees in a letter this Monday according to Reuters and Yahoo Finance.
The streaming giant captured the vote from Warner Bros. Discovery earlier this month, securing a $72 billion capital deal for its television studios, film and streaming assets before Paramount Skyd Rg-B will present a $108.4 billion hostile bid for the entire company.
Netflix is committed to theatrical releases of Warner Bros. Discovery films, stating that they are «an important part of its business and its legacy.»
«We have not prioritized theatrical releases in the past because that was not our business at Netflix. When this deal closes, we will continue to be in that business,» the letter said, adding that a hostile bid from Paramount Skydance was «entirely to be expected.»
Despite growing concern about the rigorous regulatory scrutinyNetflix is confident of obtaining approvals, based on its argument that the deal is necessary to compete with the dominance of YouTube.
However, lawyers say it is unlikely that the Department of Justice Consider Netflix and YouTube as interchangeable rivals, given their differences in content, audiences, and business models.
«Even after the merger with Warner Bros. Discovery, our audience share would only go from 8% to 9% in USstill far behind YouTube (13%) and a possible merger Paramount/WBD (14%)«says the Netflix letter.
The company stated that the agreement will not result in the closure of studies due to fear of job losses due to the rise of artificial intelligence. Paramount has also stated that it has no intention of cutting content budgets and that its goal is to manage both studio units separately.
NetflixIt opens the week lower at $94.86. The 70 and 200 period moving averages remain above the price, RSI is down at 31 points and the MACD lines are below the zero level.
Medium-term support is at $92.35. Meanwhile, Ei indicators are mixed.