Lead
Netflix co-CEO Ted Sarandos flew to London and used the BAFTA Film Awards red carpet to deliver a blunt message to Paramount as both studios pursue Warner Bros. Discovery’s movie division. Speaking to Deadline, Sarandos said Netflix already has a signed agreement with Warner Bros. Discovery and urged Paramount to respond by submitting a stronger offer rather than disputing market data. Warner Bros. Discovery reopened its sales process last week and gave Paramount seven days to submit a best-and-final bid; that window closes on February 23. Sarandos expressed confidence that Netflix can finalize its deal and address regulatory concerns.
Key Takeaways
- Netflix co-CEO Ted Sarandos traveled to London and spoke on the BAFTA Film Awards red carpet about the Warner Bros. Discovery sale.
- Sarandos stated Netflix has a signed deal with Warner Bros. Discovery and accused rivals of attempting to circumvent that agreement.
- Warner Bros. Discovery reopened the sales process and set a seven-day window for Paramount to submit its best and final offer.
- The deadline for Paramount’s offer is February 23, according to public reporting of the process.
- Sarandos urged Paramount to “put a better deal on the table” rather than circulating counterclaims about market share.
- He expressed confidence Netflix can secure regulatory approval and said Netflix wants to support Warner Bros.’ theatrical business.
- Sarandos avoided commenting on political figures when pressed, noting regulators including the U.S. Department of Justice and European authorities will assess the transaction.
Background
The sale of Warner Bros. Discovery’s movie division has become a focal point for major studios and streamers seeking to strengthen film libraries and theatrical pipelines. Netflix reached a signed agreement with WBD that industry sources say secured key film assets and distribution terms; that agreement has prompted competing suitors to seek counteroffers. In response to renewed interest, WBD reopened the process to solicit improved bids, giving Paramount a short window to respond. The compressed timetable and high-profile bidders have raised questions about deal structure, antitrust scrutiny and the future of theatrical distribution.
Paramount’s pursuit reflects a broader strategy among legacy studios to consolidate content and scale distribution amid streaming competition. For Netflix, acquiring WBD’s movie slate and related rights would bolster new-release offerings and theatrical relationships at a time when the company is balancing streaming growth and cinema partnerships. Regulators in the U.S. and Europe have shown heightened attention to large media transactions in recent years, meaning any agreement will likely face close review. Market observers note that bidders typically use brief reopening windows to secure improved economic terms or protections against regulatory risk.
Main Event
On the BAFTA red carpet, Sarandos framed Netflix’s position in straightforward terms: Netflix has a contract with Warner Bros. Discovery, and rivals should respond by improving their offers rather than contesting facts. He characterized attempts to challenge the deal as efforts to circumvent a signed agreement and pressed competitors to present superior economic terms. The public exchange comes as WBD moves to evaluate revised proposals under a fast-moving timetable that culminates on February 23.
Sarandos also sought to position Netflix as a partner for theatrical cinema, saying the company wants to support Warner Bros.’ movie unit and the theatrical experience. He portrayed the conversation as commercially focused rather than adversarial, urging clarity from rivals on the tabled terms. When asked about broader public figures or political matters during the red carpet interview, Sarandos declined to engage and reiterated that regulatory bodies will determine the transaction’s permissibility.
The reopening of WBD’s process and the tight deadline have elevated pressure on Paramount to decide whether to escalate a rival bid. Industry sources say reopenings like this are rare and typically reflect either a formal right-of-first-refusal clause, a matching-price provision, or WBD’s desire to test the market for a materially better proposal. With Sarandos publicly challenging Paramount, the theater and film communities are watching whether a bidding war or a negotiated settlement will follow.
Analysis & Implications
The dispute underscores strategic tensions in today’s studio ecosystem: ownership of high-value film franchises and distribution rights can quickly reshape competitive dynamics among streamers and legacy studios. If Netflix secures WBD’s movie assets, it would enhance Netflix’s tentpole slate and strengthen its negotiating leverage with exhibitors and talent. Conversely, a successful Paramount counteroffer would represent a significant content-play for a studio that has been rebuilding its theatrical and streaming footholds. Either outcome could alter release calendars, licensing pools and the economics of theatrical windows.
Regulatory review is central to any eventual outcome. Sarandos’ public confidence that Netflix can allay antitrust concerns signals the company believes the deal can be structured to avoid consumer-harm findings or excessive concentration in film distribution. Yet U.S. and European authorities have varying standards and recent precedent for close scrutiny of media consolidation; remedies or divestitures could be required. The short timeline to February 23 compresses both commercial maneuvering and the ability of regulators to complete thorough assessments before deals are signed, potentially shifting detailed remedies into post-closing conditions.
For exhibitors and filmmakers, the sale’s resolution will affect theatrical release strategies and marketing investment. Netflix has in recent years increased theatrical releases for prestige titles, while Paramount emphasizes traditional theatrical-first windows for tentpoles. A Netflix-owned WBD movie slate could accelerate hybrid release strategies or change licensing patterns for secondary windows such as pay TV and international distributors. Stakeholders from exhibitors to talent agencies will watch contract language around release timing and revenue splits closely.
Comparison & Data
| Item | Current Status |
|---|---|
| Netflix-WBD agreement | Signed; publicly acknowledged by Netflix |
| WBD sales process | Reopened; seven-day window for Paramount |
| Competing bid deadline | February 23 |
The table summarizes the immediate facts shaping the contest. While specific financial terms of offers are not public, the procedural facts—an executed Netflix deal, a reopened sales process, and a set deadline—frame the strategic options available to Paramount and regulators. Observers should treat any evolving figures or rumored valuations as provisional until disclosed by the parties or regulatory filings appear.
Reactions & Quotes
Deadline’s red-carpet conversation captured Sarandos’ core public message and his appeal to rivals to compete on commercial terms rather than narrative. He insisted Netflix’s agreement with WBD is binding and urged clearer counteroffers.
“We have a signed deal with Warner Bros., they’re trying to circumvent it,”
Ted Sarandos, Netflix co-CEO (red carpet comments)
In the same exchange, Sarandos challenged rivals to present superior offers and to avoid spreading misleading claims about market positions.
“If you wanna try and outbid our deal … just make a better deal. Just put a better deal on the table,”
Ted Sarandos, Netflix co-CEO (red carpet comments)
Deadline’s reporter also elicited lighter moments, including Sarandos naming an industry peer favorably; such remarks reflect the mix of competitiveness and collegiality in high-stakes M&A conversations.
Unconfirmed
- No public confirmation that Paramount will submit a formal best-and-final offer within the seven-day window.
- No regulatory decision has been issued; the Department of Justice and European authorities have not publicly ruled on the transaction’s antitrust implications.
- Claims about competitors “spreading misinformation” on market share have not been documented with specific evidence in public filings.
Bottom Line
The BAFTA red-carpet exchange crystallized the immediate contest: Netflix says it has a signed agreement with Warner Bros. Discovery and has challenged Paramount to respond with a better, clear offer rather than public rebuttals. With WBD’s sales window reopened and a February 23 deadline, the next days will determine whether a bidding battle intensifies or whether negotiations close around the existing Netflix terms.
Regulatory review and the practicalities of integrating a large movie portfolio will shape any final outcome. Stakeholders from exhibitors to European regulators will influence deal structure and timing; market participants should expect further public statements and potential filings in the coming days. For readers, the key dates and procedural facts—Netflix’s signed deal, WBD’s reopened process, and the Feb. 23 deadline—are the primary signals to monitor.
Sources
- Deadline — entertainment trade reporting (primary source for on-the-record remarks)
- British Academy of Film and Television Arts (BAFTA) — event organizer (context on red-carpet appearance)