Ted Sarandos criticises Paramount amid Warner Bros. Discovery merger battle

Netflix co-CEO Ted Sarandos has slammed Paramount over its competing bid for Warner Bros. Discovery (WBD), accusing the David Ellison-led studio of “flooding the zone with confusion for shareholders.”

In a CNBC interview on Tuesday, Sarandos addressed the ongoing months-long struggle for control of WBD. 

Netflix proposed acquiring WBD’s studios and streaming assets for $82.7 billion last December, while Paramount has made multiple hostile bids directly appealing to shareholders.

This week, the WBD board agreed to a seven-day negotiation window with Paramount, which indicated it might raise its offer.

Sarandos said Netflix agreed to the short talks because Paramount’s communications were creating uncertainty. 

“They don’t really understand the deal, including floating all these hypothetical offers and talking directly to the shareholders and bypassing the Warner Bros. Discovery board,” he explained.

The Netflix chief emphasised that the short window gives Paramount a chance to clarify its offer. 

“This is seven days to put their money where their mouth is,” he said. Sarandos also noted the deal faces regulatory scrutiny and is not universally embraced in Hollywood, particularly after years of industry cutbacks and consolidation.

Comparing the bids, he argued Netflix’s plan would maintain production and growth, while Paramount’s could reduce output, citing the Disney-Fox merger as an example of negative outcomes. 

On competition, Sarandos stressed that Netflix should be evaluated alongside all entertainment options, including YouTube, not just traditional streaming or pay-TV competitors.